The insurance industry has long been known for its traditional nature and risk aversion. However, the technological breakthrough of recent years has brought significant changes. As consumers become more tech-savvy and demanding, the insurance industry has begun to leverage technology to stay competitive and improve its services. A new wave of innovation called “Insurtech” has emerged, which refers to the use of technology to improve and optimize insurance services. These companies are revolutionizing the traditional insurance market with new business models, products and services. Therefore, to provide specialized and efficient insurance solutions, they use technologies such as big data, artificial intelligence and machine learning. Additionally, these companies provide their customers with a convenient and easy-to-use digital experience, which is essential in today's fast-paced world.
The insurance industry has benefited from technological innovations by improving user-friendliness, personalization, transparency, efficiency, profitability and risk management. However, in order to realize the full potential of technology in the insurance industry, issues such as legislation, customer retention, and data protection and security need to be addressed.
Perhaps the best way to increase profits is to take advantage of the time and cost savings that technological innovation can offer. If you're still not convinced, consider this: innovation in the insurance industry isn't just necessary to stay competitive, it's inevitable. Early adopters will be ready to outpace the competition and grow their market and profits.
Innovative technologies will dramatically change the insurance landscape. However, knowing which technologies have the biggest impact and how those impacts drive changes in the industry can be a daunting task.
To help you understand technology and its impact on your business, here are five ways technology is transforming the insurance industry.
Artificial Intelligence and Machine Learning means higher quality usage of data and process efficiency
Artificial intelligence (AI) is a branch of computer science concerned with building intelligent machines capable of performing tasks that normally require human intelligence.
Machine learning (ML) is a type of AI that uses data to learn on its own through data analysis and then apply that learning without requiring human intervention. This subset of AI is becoming increasingly important in various organizations.
AI and ML are used in the insurance industry to automate processes, document reading and issuance, communication, internal operations management, and other often time-consuming administrative activities.
A McKinsey Analytics report estimates that investments in AI across all functions and use cases can drive $1.1 trillion in potential annual value for the insurance industry. When AI is applied to insurance functions such as risk assessment, claims management, customer onboarding and other key data-driven activities, AI/ML not only increases the efficiency in the processing of this data, but also allows them to be analyzed in quasi-reality. time. and true to scale.
With the proliferation of the Internet of Things (IoT) and the increase in the size and logistical granularity of insurance projects, the amount of data will only increase exponentially. Machine learning can use this data to better understand current and potential customers and show clearer connections between the insurance services currently offered and their financial results. AI can help a business gain more strategic insights on how to not only act on the data provided, but also better position themselves strategically.
Fundamentally, in many ways, AI acts like a proxy organization, working tirelessly and extremely efficiently to better understand your current business conditions and then find options to continuously improve them.
The scope, breadth, and depth of ML continues to grow to better understand and support data consumption and even monetization. This is a huge advantage for an industry operating in an ever-expanding ocean of diverse data.
Blockchain technology increases certainty and trust
When it comes to fraud prevention and data integrity, the stakes have never been higher, especially in the insurance industry. In March 2021, CNA Financial, one of the largest insurance companies, was hacked. They ended up paying $40 million to regain control of their network.
Due to the nature of the data that travels over networks, insurance companies are high on the list of hacker targets. This has fueled the use of blockchain technology in the insurance industry and is rapidly becoming a core technology to ensure data integrity and security.
The blockchain is an immutable digital ledger that records and tracks transactions. Because it is distributed over a network, it is considered impenetrable and secure.
Because communication between claimants, policyholders, insurers and other stakeholders is a necessity within the insurance ecosystem, blockchain provides a means of communication that can almost completely eliminate data security risks. and protect participants. that your data will not be compromised. A company that can support transactions using blockchain technology has a clear market advantage.
Automation is a growing necessity
When reviewing insurance activities such as claims handling, policy administration, regulatory compliance, underwriting and administrative reviews, quotes, and other necessary processes, performing these tasks manually is not only tedious, but also quick and subject to other instances of human intervention. Error.
Automating these tasks is the goal of the insurance industry in general. Gartner's Forecast Analysis: "Hyperautomation Enabling Software, Worldwide" forecasts the global market for hyperautomation enabling technologies to reach $596.6 billion by 2022. is a vertical business that is a major contributor to this demand. As business accelerates, important assurance tasks and processes must keep pace. Automation engineering is essential to meet the demand and provide a cost effective response.
Object detection ensures greater on-site capabilities
Object recognition is a computer technology related to computer vision and image processing that deals with the recognition of instances of semantic objects of a specific class, such as people, buildings or cars, in digital images and videos.
The main purpose of object detection is to identify and locate one or more effective targets using still images or video data. It comprehensively encompasses a variety of important techniques such as image processing, pattern recognition, artificial intelligence and machine learning.
According to the Federal Highway Administration, more than 20,000 highway workers are injured each year. More than 35% of these injuries result from contact with objects or equipment. Now, when we examine the insurance implications associated with this statistic, it becomes clear how valuable object recognition technology can be to the owner of an owner-controlled insurance program.
Using this technology can mitigate injuries by identifying and addressing potential issues before they arise. This leads to fewer claims and better insurance profitability. Object recognition technology enables more efficient assessment of work progress and can facilitate on-site inspections. These on-site skills can have a huge positive net effect on the entire project.
Analytics is the window to the world
Peter Sondergaard, senior vice president and global head of research at Gartner, Inc. is quoted as saying, "Information is the oil of the 21st century and analytics is its engine." The ability to understand and use information is an absolute must for businesses. succeed and survive in competition. With increasingly complex data, identifying and implementing the right analytics technology is critical to success.
Risk assessment is one of the main areas of the insurance landscape where data analytics is used to inform important business decisions. An insurer can offer its customers more personalized premium offers if they actually have a global view of the relevant data.
Pricing strategies, damage mitigation, lead generation and customer satisfaction are some of the areas where data analytics can provide competitive advantages. Analytics systems that are fine-tuned or customized for specific data, flexible in their presentation, and providing in-depth analytics that deliver actionable insights are a core technology that is perhaps the industry's greatest transformative force. assurance.
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Latest Confrence Happening in Boston
Insurance Tech & Innovation Conference - Boston
Transforming your insurance business has become a necessity of the hour!
In order to keep up with the competition, insurance companies need to change quickly. That's why we're hosting the Insurance Technology and Innovation Conference on May 25-26, 2023 to help you navigate this transformational journey. This conference brings together more than 300 insurance industry decision makers, men and women, face-to-face to learn lessons and strategize.
New situations and scenarios have enabled insurers to break down traditional barriers and think differently to transform their business. The rise of InsurTech has opened up new business model strategies and breakthrough technologies to take the next step in your digital transformation journey.
The way insurance creates and delivers value has changed dramatically, and the global pandemic has only accelerated this change. All major insurance companies have begun to reinvent their business, both internally and externally, to meet the changing needs of their customers. Today, the only way to dominate the market is to accelerate the technological and digital transformation that can meet the needs of a world in crisis.
While leading insurance companies have already ushered in a new and different future powered by technology, at Altaworld we are constantly striving to create an alternative ecosystem based on technological innovation, digital transformation and end-to-end connections. .
At this two-day, face-to-face event, you'll experience exciting interactive sessions, trivia presentations, and panel discussions!
The conference will cover topics such as "New World", "New Customers", "New Solutions: Better Customer Experiences", "Customer Loyalty Models", "Chatbots/Conversational Bots", "Omni-Channel Support", "Digital Insurance Disruption” – “Leveraging technologies such as analytics blockchain and cloud AI/ML IOT and big data to transform the general insurance roadmap and virtual claims process transformation – modernizing legacy RPA, automated compliance and more.
Attendees include CIOs, CTOs, CEOs, VPs, directors, executives and managers from the insurance industry, including brokers/agents, retail agents, adjusters, underwriters and actuaries. Our last conference featured companies such as Nationwide State Farm Insurance, Berkshire Hathaway Insurance, Progressive Insurance, Chubb Insurance, Liberty Mutual Insurance, USAA Insurance and many more.
This conference will help you build your network with some of the most influential women leaders in the US insurance industry!
Richelle Johnson