Technology has become a necessity for the modern era. It plays an important role in every human’s day-to-day life and has taken over every other industry across the globe.
Insurance is amongst the last industries to recognize the importance of technology for their growth. During the panel discussion with Andrew Rose, Christian Riepe, David Stubbs, and Dan Smith, moderated by Startupbootcamp Insurtech MD, Sabine Vanderlinden, it was concluded that “Consumers expectations have evolved quicker than insurance carriers and insurance industries need to continue to break down the process and partner with Insurtechs to sort this out”.
Insurtech refers to the use of technology in the insurance sector, which over the years, has successfully provided an ecosystem that brought adjacent industries together to provide an improved service of greater value to insurers and their customers. Some of the ways in which Insurtech is transforming the insurance industry are:
Artificial Intelligence (AI) refers to the process of programming machines to think and act like humans. It allows machines to sense and learn human behavior, and take decisions based on its collected data.
AI has occupied an important place in every other industry across the globe and has become one of the most used insurance software. According to Google Trends, there has been an increasing interest in AI-powered insurance applications from 2012 to 2019. This increase is because of the various benefits this technology provides. Some of them are:
- AI produces a personalized experience for the customer, based on the customer’s behavioral pattern and habits
- AI enables insurers to access the data faster as it cuts out the human element, therefore enhancing the customer experience
- AI takes over the underwriting process, thereby enhancing work efficiency and saving time
- AI improves the turnaround cycle
- AI uses deep learning algorithms and biosensors to identify emerging risks and new opportunities
- AI chatbot can walk a customer through the claim process or policy application, allowing employees to use their time and effort for other complex cases
Blockchain refers to the system that maintains records of transactions across different computers linked in the peer-to-peer network.
The use of blockchain in the insurance sector has increased much in recent years. According to the PwC report, blockchain offers a $5 billion opportunity for Property & Casualty insurers, thus making this insurance software important for both insurer and the insurance agent.
Given below are some ways in which Blockchain has transformed the insurance sector:
- Blockchain offers high security, thereby ensuring customer’s trust in the insurance company
- Blockchain eliminates manual storage of data, thus assuring an error-free work process and enhancing workflow efficiency
- Blockchain acts as a fraud detector and saves companies from taking risks.
- Blockchain is cheap to operate, thus it helps to save money
Predictive analysis is the process of understanding and predicting the customer’s behavior. Insurance companies use this technology trend to:
- Predict whether the customer is about to cancel the insurance so that the company could offer more attractive deals
- Predict pricing and risk selection
- Keep up with the latest trends
- Identify fraud risks
Internet of Things:
Internet of things refers to the process of transferring or collecting data on interrelated or inter-connected devices over the internet without human intervention.
According to Forbes, IoT could help insurers to cut the cost of the claims process by 30% and also lower premiums for consumers. Along with this, IoT has developed the insurance sector in these ways:
- IoT uses uploaded data to determine risk and policy rates
- IoT stores and transfers data over the internet, thus saving employees time and effort, leading to efficient workflows
- Wearable IoT devices like Fitbit can be useful for life and health insurance companies as health professionals can use these devices for patient monitoring, diagnostics, and drug delivery. When enabled with analytics, wearables can be used by consumers to manage their health and by insurers and employers to improve wellness
Machine Learning is a branch of Artificial Intelligence that focuses on making machines capable of processing data and acting on their own without human supervision.
Machine Learning has contributed to transforming the insurance sector in these ways:
- It automated the claim processing, making it error-free
- It made files accessible via the cloud, thus making it easy to analyze them and improve speed and accuracy
- It can be used for risk management and policy administration
The insurance business is amongst the competitive industries, growing almost every day. The competition and growth have made it necessary for the industry to rely on technology for efficiency and accuracy.
Understanding the need of Insurtech, leading companies such as Jellyfish Technologies is providing insurance software development services to some of the major insurance companies across the globe. Insurance providers such as Patra Corp and Heffernan Insurance are leveraging JFT expertise to deliver high-quality solutions to their customers. If you want to take your insurance business to the next level, then reach out to Jellyfish Technologies for the best insurance software development services.