InsurTech – A Key to revolutionize P&C Insurance
Blog: NASSCOM Official Blog
In today’s time, advance technologies for insurance sector are transforming the lives of their customers, paving new ways of interacting with their customers, managing transacts, crucial information, etc. With emerging need to go Digital, insurers are evolving, collaborating, and investing more with Insurtech firms to discover greater opportunities for efficient ecosystem.
These new technologies – broadly categorized under the name InsureTech – are revolutionizing business continuity and causing a fundamental disruption in the Insurance ecosystem, especially in Property & Casualty (P&C) insurance sector. These technologies are paving new possibilities for customer acquisition, service provision, greater opportunities for data collection, fraud detection and risk management and overall regulatory compliance and control. With the ongoing pandemic, the necessity for P&C companies to boost their digital transformation and collaborate with partners has increased. Thus, new trends and digital disruptions are emerging in P&C Insurance:
- New Age Architecture using APIs and Micro services: APIs empower insurers to develop new applications at a faster pace and enable seamless integration with other emerging solutions. More than two-thirds of all insurers have deployed APIs, and distribution pressures make them increasingly critical for many insurers. APIs and microservices technologies enable external and internal integrations by allowing external systems to invoke individual functions or data queries from an internal insurer system.
- Integrated Design & User Experience For Better Customer Experience: Customer facing front end solution is continuously expanding its demand in the emerging digital insurance world, it gives improved visibility and access to real-time information 24/7, 365 days a year.
- Cloud Computing, Big Data and Analytics Improving Business Efficiency: P&C Insurers adopting Cloud, Big Data and Analytics for Better Business Agility, Decrease Maintenance cost, Quick Deployment, Disaster Recovery and Better Scalability.
- Artificial intelligence and Machine Learning to take Insurance Experience to the Next Level: P&C Insurers are rapidly Automating Processes across the enterprise wide applications by leveraging technologies such as AI.AI provides opportunities for the Insurers to create and curate completely personalized experiences for their customers. With AI, Insurers can fundamentally automate and change the underwriting process and improve the speed of claim turnaround cycles.
- Smartphone Applications for Quick and Better Customer Experience: Smartphone applications are interactive, quick and improves customer engagement. Insurers are taking big steps to make customer experience easy and better by building applications.
- P&C Insurers adopt Internet of Things (IoT): P&C Insurers are leveraging the benefits of IoT devices to achieve better communication, loss prevention, risk mitigation, automation and control, monitoring, time, and cost efficiency. The plethora of smart devices and wearables provides Insurers with a huge volume of personalized data. Internet of Things (IoT) devices typically use sensors to monitor internal and external conditions, including environmental conditions or device usage. These devices are sometimes used to evaluate risk levels, but they are also used for loss prevention, safety, or security.
- BlockChain and Distributed Ledger Potential for the Insurance Industry: Key game changer in the Insurance Industry, it is essentially a record, or ledger, of digital events. Blockchain helps in maintaining a certain and verifiable record of every single transaction ever made across multiple business units.
- RPA, Chatbots & RoboAdvisory for Customers and Insurers Benefit: P&C Insurers are increasingly automating processes across the value chain by using RPA, Chatbot and RoboAdvisory, It is optimizing customers and Insurers experience by giving instant assistance 24/7, generate leads for Insurers, saves cost and can integrate with social Media.
- Drones Role in Insurance Firms: Drones are increasingly used by P&C Insurers to achieve the accuracy and speed of Underwriting and Claims processing. Unmanned drones are an insurance technology tool that is being increasingly utilized by Insurance companies in the P&C space to aggregate COPE (Construction, Occupancy, Protection and Exposure) information. They can be used across many stages of the insurance lifecycle – collecting data to calculate risk before issuing a policy, aiding in preventative maintenance, and assessing damage following a loss.
- Augmented Reality Changing the Vision of Conventional Approach of the Insurance World: P&C insurance industry and augmented reality (AR) is essential are that brokers, and adjustors should closely watch. AR superimposes computer generated information on a live image, providing users with information that supplements their view of the real world.
- Quantum Computing is the Next Big thing which will revolutionize Complex processing: Next-Gen solution which would be enabling the World of Insurance to attain greater heights in transformation by solving problems above a certain size and complexity. Quantum Computing is around the corner where it may soon be operationalized within 3-4 years. It will hit insurers between 2024 and 2030 and preparedness may start. Quantum computing could process huge datasets in a fraction of a second that takes days and weeks. It can also calculate almost any kind of risks, such as the impact of an approaching catastrophe like hurricane, tornado, flood etc.
To sum it up, as Insurance companies develop their innovation agenda using the power of new technologies is absolutely critical. However, the traditional Insurers need to recognize that these technologies do not provide a silver bullet solution- they need to be contextualized and used within the overall to drive change in behaviour both within and outside. Insurers also need to design the technology adoption framework within the overall boundaries of regulation and privacy and data protection. Partnering with specialist organizations including startups can provide an immediate boost to this adoption.
By Ranjit Nair, Director – Engineering, GlobalLogic
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