How is technology reshaping the insurance policy management process?
The insurance industry is changing at a great pace, and technology is the primary fuel propelling this transformation. Insurance firms all across the world are using modern technologies like blockchain, cloud computing, machine learning, artificial intelligence, Internet of Things (IoT), etc. for gaining an edge over their rivals.
Internet, a marvel of the human brain, along with other modern technologies is playing a crucial role in revolutionizing, and in enhancing the performance of the insurance industry. Together they have transformed the process of buying and selling insurance policies and have significantly reduced the time involved in it. This has made many insurance firms tech savvy.
Numerous policy providers are using the internet in promoting their company and in increasing their online visibility so that they can reach their more possible clients. These industries are also using AI algorithms in mitigating insurance frauds. So, let’s go through some of the examples showcasing well that how technology is reshaping insurance policy management process.
Internet of things
Internet of things is a powerful technology that holds power to reshape the insurance industry, enabling insurers to make quick and efficient data-driven decisions.
It has introduced a new dimension for growth in the insurance sector, as it maintains constant connectivity between insurers and clients. Selling and purchasing of the insurance policy and other insurance products is no more a hassle. Now the customer can get all the information regarding policy on their smartphones, tablets and other mobile devices, all thanks to IoT.
Monitoring a vehicle
IoT is also helping auto insurers in tracking a vehicle. Auto insurers are now using advanced technology known as “telematics” that helps them in collecting vital data like the acceleration of the vehicle, speed, distance covered, braking pattern, etc. This type of data helps insurance providers in determining premium rates of a policy. Premiums are lower for responsible drivers and high for reckless drivers.
Social networking
Social networking sites like Facebook, LinkedIn, and Twitter are a great tool that is bridging the gap between insurance policy providers and their clients. All social media sites provide live-chat services, which is a suitable atmosphere for dealing with queries and providing instant solutions to clients. This again makes the insurance policy process seamless as insurers can approach the clients with the right pitch and resolve their queries instantly.
Cloud computing
The policy management process creates an enormous amount of data, which includes details of clients, policy number, etc., this data is essential and needs to be stored securely. For this reason, insurance firms are shifting to cloud computing, which is a unique system of storing and accessing data online. It is affordable, increases performance and productivity, safe and secure way of storing data, offering speed and can be accessed from any part of the world. It seems that cloud computing is taking off the pain of data generation from insurance policy management process.
Blockchain
Blockchain or distributed ledger, in simple terms, assists businesses to store each information or data in the chains, which is only accessible with valid id and passwords. This new technology has immense potential if used wisely by the insurers.
Blockchain can help health insurance providers in storing medical records, which can be cryptographically secured and shared. It can also help insurers in reducing insurance fraud and in preventing risk by moving insurance claims onto an unchallengeable ledger. Also securing reinsurance contracts on Blockchain, will eventually, ease the flow of information, simplifying the payments between insurers and reinsurers. More so, insurers can utilize smart contracts that are beneficial for both the parties across the insurance value chain, making policy management process seamless.
Chatbots
Chatbots is another genius of modern technologies used for enhancing the customer experience. It is based on artificial intelligence and machine learning and is capable of imitating human-like conversations. Due to their ability to mimic human conversations they are used in online chatting with clients and in assisting them with their inquiries related to different insurance policies. Chatbots are bombarding the insurance sector as they are capable of providing 24/7 customer support without any interruption, and it’s the reason why 74% of the consumers are happy to get computer-generated advice.
Wrap-Up:
As new and more technologies are becoming advanced players and joining in the competition, survival in the insurance world is getting tougher for insurers. Traditional insurance firms are facing a severe threat from new startups. Now it has become mandatory for ambitious insurance companies to embrace modern technologies and speed up their performance. Insurance policy management is an essential function of an insurance business. And employing advanced technology in their policy management will encourage insurance companies in designing an excellent performance graph.
According to a survey currently, 10% of insurance businesses are entirely dependent on technology. This is a fairly a small percentage, but in the near future, this percentage is expected to grow!
Author Bio:
Diana Krall, is a business strategist at ISW. She has been a great contributor to the insurance industry for years. She is passionate about sharing information with insurance professionals regarding insurance back office outsourcing, policy & commission management support through her writings.
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