Top 5 Technology Trends transforming the Insurance Industry in 2023
In today’s digital landscape, the insurance industry has seen a rapid transformation in how consumers do business. From smart phone application capability to Internet-enabled shopping portals and digital brokers, the insurance industry is embracing new technology to bring transparency and convenience to their customers.
The insurance sector is expected to continue seeing technological advancements that transform the industry in 2023 – here are some of the most important insurance technology trends that you need to keep an eye on in the coming years.
According to the Gartner, only 8% of insurance CIOs report having implemented the key components of business composability and for an industry facing continuous market change, this is an area that requires more attention.
Self-service Portals for policyholders
Currently, a large percentage of insurers use call centers and other self-help channels as a way to handle small customer requests. However, providing customer service employees with the training necessary to provide the level of customer service expected by the industry is prone to inconsistencies and high costs.
Self-service portals are becoming a must for insurance companies as they provide more convenient ways for customers to handle their insurance needs, including getting a quote, making payments, and even scheduling claims. With self-service solutions, insurers can take advantage of customer behavioral data to provide more personalized services and real-time assistance.
Low Code Applications
In today's world, the insurance industry is constantly changing as new technologies are introduced. This has led to a need for developers who are able to create and maintain low code websites. Low code development is a process of developing websites using fewer lines of code than traditional development processes.
This allows developers to create more efficient and user-friendly websites, which in turn increases customer satisfaction. For insurance companies, low code development is essential because it allows them to quickly and easily update their websites without having to redevelop the entire site. This is especially important in today's digital world, where customers are always looking for the latest and greatest information.
Predictive Insurance analytics
As the insurance industry continues to see demand for more affordable rates, insurers will continue to invest in technology innovation to provide real-time risk assessment and underwriting. In order to provide accurate predictions and avoid issues with faulty models, insurers will need to make use of new data sources and advanced technologies.
According to a 2022 Capgemini report, over 40% of insurers are leveraging data to enter new markets, with many “shifting from protection to prevention, and revisiting actuarial assumptions.” By processing data in real time to create accurate risk assessments, insurers can then offer more accurate premiums and provide better coverage.
IoT and Telematics
In the insurance industry, there's a growing need for secure, connected devices that can help insurers reduce losses and fraud. This is where IoT (Internet of Things) and Telematics come in. IoT refers to the widespread use of small, low-cost devices connected to the internet. These devices can be used to monitor physical objects (like cars or buildings) or operational systems (like insurance policies).
With Telematics, insurers can improve their customer service, optimize their processes, and track customer data. For example, by collecting data from devices like road signs, cars, and bridges, and then storing it in a high-performance database, insurers can provide more accurate risk assessments and create more sophisticated algorithms.
Applied AI and NLP
In the insurance industry, Applied AI and NLP are two powerful technologies that are being used to help ggents and underwriters better understand customer behavior and assess risk. Applied AI is being used to analyze large amounts of data to identify patterns and trends, while NLP is being used to interpret and understand customer statements. By using these technologies, insurance companies are able to reduce the time it takes to make decisions and improve the customer experience.
As insurers continue to streamline and digitize their processes and technologies, they will look to partner with leading technology services provider such as Espire to modernize their operations. Insurers will be able to bring automation and real-time decision-making to their underwriting and claims processes – significantly reducing operational risk and expenses.