The insurance industry is one of the most data-intensive markets in the United States, so it’s no wonder that insurance companies are on the cutting edge of big data technology. Insurance technology, or insurtech, has evolved greatly over the past decade, making operations more efficient for insurers and more convenient for consumers.
Insurtech companies are developing new technology at a rapid rate, and each advancement is more amazing than the one before. Continue reading to learn about five trends in insurance technology that are revolutionizing insurance markets.
1. The use of IoT to assess customer behavior.
The internet of things (IoT) enables electronic equipment to share and process data in real-time, making machines smarter than ever and allowing them to learn from human users. The internet of things has several applications in the insurance industry, and chief among them is monitoring and reporting customer behavior.
Once common example is new technology, such as wearable devices like watches that monitor physical activity and vital signs. There are even plugin devices for automobiles that allow auto insurers to get actionable insights into how their customers brake, turn corners, and even how fast they drive. Using these monitoring devices, insurance companies can create unique packages and set data-based premiums for their policies.
2. Smartphone apps are enhancing the customer experience.
Another growing trend in insurtech is smartphone apps. One of the main things people love about mobile apps is that they make it more convenient than ever for people to access important products and services, insurance included.
In the past decade, mobile apps have become so popular that they’re all but a necessity for all types of enterprises, even small businesses. Smartphone apps enable policyholders to access their policies with the press of a button and file claims or make adjustments to their insurance policy.
3. Big data analytics insights enable insurers to create better insurance products.
Big data analytics has pervaded every sector of industry and helping companies to improve everything from customer service to product development. It should come as no surprise that a data-intensive industry like the insurance industry relies on big data analytics to aid in decision-making and the development of unique insurance options. Furthermore, big data analytics also aids insurance companies in creating unique insurance packages for people and even startups for varying situations.
4. Smart contracts make it quicker and easier to process insurance claims.
Filing an insurance claim isn’t something to which people generally look forward. However, with smart contracts, the claims process is more cost-efficient for insurance companies and less frustrating for policyholders.
One of the great things about this relatively new insurance technology is that it enables policyholders to file insurance claims on their own and the smart contract system handles claims management. Smart contracts technology even scours vital statistics databases and initiates claims management for life insurance policyholders upon their death without having to trouble their grieving family.
5. Artificial intelligence makes it easier than ever for customers to get customer support.
Another one of the creative ways in which artificial intelligence is used in the insurance industry is in providing customer service. With interactive voice response, policyholders can speak with an automated system using their natural language and get the solutions they need without intervention from a human agent. In the case a human agent is necessary, IVR gets callers to the right agent quicker.
Insurtech companies have come leaps and bounds in a very short time, making the insurance industry more customer-friendly and insurance companies more efficient. With advancements such as smartphone apps and AI that enhance customer experience and IoT and analytics that deliver valuable insights, connecting people and insurance policies is easier than ever. As the use of data science in the insurance industry grows, you can expect insurance options and customer service to continue to improve dramatically.