The insurance industry has been slow to adapt to technological innovations. Until now, the use of modern technologies in insurance companies has been limited mainly to claims processing and customer support. According to Deloitte, this lack of innovation in the Insurance sector implies an increase in customer churn.
However, the entry of non-traditional players like insurtechs and the availability of user-friendly platforms have changed the scenery and benefited both insurers and customers.
Fortunately, in the last decade, insurance has changed considerably and significant advances in technology are impacting the insurance industry. Insurtech companies are developing new solutions and platforms for insurers, and insurers are investing in new technology, and this trend shows no signs of slowing down. According to the Insurtech Global Outlook 2022 done by NTT Data, Investment in insurtech exceeded $10.1 billion (€9.3 billion) in 2021, up 38% from the previous year.
New tech trends have transformed the insurance industry, making it possible for insurers to offer new services. In this article, we’ll look at 3 of them:
The process of underwriting can be complex for both insurers and clients. Insurers need lots of information and usually, the client doesn’t provide it or the one he provides is outdated. In addition, manual insurance underwriting is longer and more likely to contain human error than automated insurance underwriting.
Thanks to new tech like Open Data and AI, insurers no longer require customers to provide certain information and can therefore save time by focusing on their clients.
Customized products with Open Data
Customers want more than ever to be listened to. What’s more, they are cost-conscious, and they feel they can ask more for their money. They want a service that meets their needs.
In the past, insurers were limited when predicting risks because they had static -and usually outdated-data. This resulted in non-customized services and inaccurate policy pricing.
Nowadays, insurers are starting to redesign their culture and adopting a customer-centric approach. They can use Open Data tech to better identify and price risks on an individual basis.
Know better your customer needs with AI
Artificial Intelligence (AI) tech is changing the insurance industry too.
Nowadays, Insurtech companies can use intelligent algorithms and machine learning to take advantage of the vast amounts of data available.
AI may be used to create more thorough customer profiles by identifying new trends and defining which factors insurers should focus on to get better results.
In conclusion, Open Data and AI are transforming the insurance industry. Every day, more insurance carriers are adopting new tech to improve their processes and anticipate customer needs.
The increasing volume and quality of data allow insurers to be more efficient, offer more suitable services, and make better decisions.
InsurTech companies are helping insurers to leverage the power of new technologies. Nowadays, it is possible to make insurance processes fast, simple, and accurate with the power of Open Data and AI, as we do in Wenalyze. If you are looking to exploit these new techs, contact us now.