
How Will Technology Affect the Insurance Industry in 2021?
CIO Review APAC | Thursday, August 12, 2021

The insurance business has been undergoing a digital revolution in recent years—but experts believe the need to confront the pandemic's unique difficulties has hastened this development.
FREMONT, CA: This is a critical time for insurers. As technology becomes more widely available and customer expectations rise, insurers are pushed to venture outside their comfort zones and embrace technological innovation. As the first generation to grow up with smartphones, real-time responses, and 24/7 access to information, younger customers expect this from every engagement.
Insurers must provide a consistent customer experience across channels and digitally transform to meet the changing needs of younger consumers. In essence, insurers must perfect their omnichannel experience by 2021.
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Below are a few of the top technology advancements that will revolutionise the way insurance companies work in 2021:
Automation: Automation will be critical in assisting insurers in achieving the omnichannel experience they desire. Numerous insurance components can now be automated, freeing up time for insurers to focus on other essential duties while boosting accuracy and efficiency.
Artificial intelligence can automate underwriting, risk assessment, and fraud detection procedures. As the amount of data analysed by the AI software grows, it will become increasingly capable of identifying patterns and producing value-added insights for the business.
Data: Insurance has always been a data-driven sector, but insurers can now take advantage of big data with the advent of new technology. To be valid, data must be filtered and organised into bite-sized, usable chunks. Once employees across their organisation have easy access to data and use these insights, insurers will be much better equipped to provide a more personalised experience to their clients.
Cloud: Cloud computing services will become increasingly vital as insurers rely more heavily on new technologies. Cloud computing is critical for insurers to maximise big data’s value, enabling organisations to manage and analyse data efficiently at scale. Additionally, it provides significant benefits for businesses trying to streamline and modernise their operations, allowing them to be more nimble in responding to change—not to mention substantial long-term cost savings.
Insurtechs: Insurtechs are likely to continue to be acquired by large companies in the market in 2021, enhancing their arsenal of capabilities. As insurers continue to respond to the pandemic's demands, they will almost certainly require the flexibility and technological innovation offered by insurtechs—typically in a single area of insurance.
Additionally, acquisitions of insurtechs eliminate competition. If incumbents are to maintain their position over the next few years, they must mitigate market risk—or, in this case, absorb it.
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