The clients became digital, that means, they use technology in/for all different types of sectors. This fact makes them become more demanding when searching for the more adequate insurance product for their necessities. Also, as we already talked about, the new clients are used to fast, easy and innovative products.
This is the reason why the insurance sector must be aware of the drivers of change and invest in them in order to attract the new clients. Today, we are explaining some of the facts that are driving the change inside the insurance industry.
IoT (Internet of things)
Every day, there is a new gadget that a few years ago we never thought it would be able to connect to the internet and become smart. As an example, smart bulbs, smart plugs or even smart vacuum cleaner… We literally live connected. IoT gathers data of our daily habits in order to offer us a better service. And what about commercial insurance? This technology will help insurers to improve customer experience, evaluate risk based in the habits and create better insurance products. For example, there are devices capable of preventing leaks, fires, gas leaks or internet outages based on IoT.
Last week, we already talked about this disruptive technology. After mentioning IoT, you might be wondering what happens with the security. Block chain enables more security in transactions thanks to Cryptography, a secure communication technique in which data is transferred to 3rd parties through codes. It will also enable us to create smart contracts, reducing paperwork and making faster processes based on what the client needs.
Cloud computing is having an impact on all different sectors. Inside of the insurance sector, this technology will bring the benefits of cost reduction and processes optimization. As the info is stored in the cloud, it is easier to access it from anywhere in the world. At the same time, this storage is more organized, efficient, and more protected.
Data Analytics and Open Data
Open Data are any kind of information that can be accessed and found on the Internet. For the Insurance sector, this means brand new world of underwriting client’s data. For example, thanks to Open Data Sources, we get to know the real-time name, address, opinions, and activity of a certain business. This makes it easier to automate and improve current underwriting processes.
For example, at Wenalyze, we base our models on Open Data Sources which applied to the insurance sector makes insurers save time while increasing efficiency.
The drivers of change for the Insurance sector are mainly based on technology. Do you know any more drivers? Let us know in the comments.