According to PWC, 41 percent of consumers are likely to switch their insurance companies in favor of a more digitized one.
With this drastic shift in consumer demands, insurance companies are welcoming the digital era by adopting advanced technologies and business models to meet competitiveness and attract new-age customers.
Let’s take a look at some of the significant Insurtech trends that will shape the insurance sector in the coming years.
Cybersecurity and Blockchain Technology
Insurance companies are integrating various advanced measures to strengthen cybersecurity, one of which is blockchain. With blockchain, insurance companies can optimize security, transparency, ledgers, and so on. Furthermore, blockchain can also help in creating smart contracts which eliminate the manual process of verification and information sharing, making the process both time and cost-effective.
Internet of Things (IoT)
The Internet of Things is among the progressive technologies that attract every other industry to build a top-notch digital customer experience, one of which is the insurance industry. Advanced IoT devices can provide better rates, prevent losses, and reduce risks. The Internet of Things can also offer a competitive edge while posing risks and if both are managed well, it can open up countless opportunities for the insurance industry.
Chatbots
According to Servion, by 2025, three-quarters of customer service interactions will be driven by AI chatbots and voice command devices. Insurers spend hours explaining and providing clients with the information and data they require to make decisions. But with technologies like chatbots and virtual assistants, these activities can be easily automated.
Furthermore, chatbots can improve customer interaction by quickly resolving service-related queries or problems, leaving the customer satisfied with the service.
Cloud Computing
According to Statista, the global hybrid cloud market is expected to reach 145 billion U.S. dollars in 2026. Cloud storage is essential for all types of businesses and its adoption is vastly increasing in the last decade. Data storage and backups, API integration, enterprise resource planning, CRM systems, platform hosting, and insurance claim management, are a few ways in which insurers can use cloud computing to improve their operations.
Service Management Software
Field claim insurer has an integral role in managing key decisions for the company and customer. They are responsible for assessing damage reports and investment claims which take up a heavy amount of their time and effort. With field service management software, insurers can assign and dispatch claims via smartphones, reduce travel time by optimizing routes, and manage contractors effectively.
Democratize Development with low-code Technology
Whenever insurance companies decide to integrate advanced technologies into their services, they often get confused about where to start and who to hire. But there’s a highly advanced option that insurers can consider before starting their digital journey, known as low-code technology. Low-code technology does not require manual form coding as insurers can design their application’s graphical user interface with the help of easy-to-use drag-and-drop tools. The ability to easily create custom applications is a game-changer for insurers since it enables greater agility and accelerates product development.
Conclusion
In the coming years, the insurance industry will face many challenges due to evolving customer needs and the growing need for customized services.
It might seem hard to choose the right technology for your company but keeping these upcoming trends in mind will help you to make the right decision. Adopting these trends can help you fundamentally transform from top to bottom and grab new opportunities.
If you are looking for a digital partner to integrate these technological trends into your services, then you are at the right place.
Jellyfish Technologies is one of the leading organizations that can assist you in developing future-ready Insurtech applications and software solutions. Our team of experts follows a logical project development cycle that entails requirement gathering, business analysis, and best practices to ensure effective and best results.
