How Technology is Benefitting the Insurance Industry

CIO Review APAC | Thursday, June 10, 2021

Advanced technologies is helping the insurance industry to develop successful business strategies while entering or growing in emerging markets.

FREMONT, CA: Technology has revolutionized every aspect of the world and is arguably the single most potent force shifting human requirements and the nature of business. The insurance sector is also not immune to this change.

Recently, technology has been driving innovation in the insurance sector, resulting in several achievements. As a result, the world's largest insurance companies have begun to shift their focus to the most cutting-edge innovative technologies that will enable them to become even more customer-centric and achieve operational efficiencies.

Approaching new markets and expanding in current ones is the primary priority of the insurance industry worldwide. Successful business strategies for insurers entering or expanding in emerging markets include rapid growth, increased size, and a greater emphasis on life insurance, all of which can now be accomplished with the assistance of technology.

Some of the major technology-based innovations in the insurance industry.

AI and IoT

Artificial intelligence advancements enable incumbents to automate increasingly complex tasks, such as responding to all types of customer queries. AI in insurance reduces the time it takes a customer to buy a policy or settle a claim and uses historical and behavioral data as a driving record to develop more personalized packages. A group of Internet of Things (IoT) technologies can also assist insurers with more mature technological abilities to decrease manual interventions in claims and pricing.

Customer expectation

Customers have more innovative and complex requirements than ever before, and they are more informed about their options. They desire personalized service and tailored communications, which is why insurers must digitize services and optimize every interaction. As per the Global Consumer Insurance Survey, 80 percent of customers are prepared to use digital and remote channel options for various tasks and transactions.

Technology at its peak

Cloud computing, advanced analytics, the global positioning system (GPS), telematics, digital platforms, and drones are some of the other technologies offering new methods to measure 

and control risk, connect with consumers, and widen insurability. They also allow for the development of new insurance services, products, and business models.

See Also: Top Artificial Intelligence Solution Companies

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