Technology is driving change across many industries today, particularly in the insurance sector. The disruption that it has delivered has created opportunities for evolution that could be crucial to sustaining and developing a competitive edge. According to a recent Accenture report 86% of insurers believe that innovation needs to speed up in order for businesses to remain competitive. Below are five ways in which that innovation is already starting to arrive.
1. Employing automation
The basic purpose of automation is to allow robotics to handle mundane, repetitive tasks to save money and time and free up resources to add value elsewhere. Automated document processing and data collection can significantly speed up the claims process, for example, while automated data management increases accuracy and process speed.
2. The use of AI
Artificial intelligence is new technology but provides a wealth of opportunities for insurance businesses to evolve. For example, it can be employed via facial recognition in underwriting, alongside gamification, to identify bad habits and predict lifespan for the purposes of premiums. AI chatbots are also increasingly being used to personalise and improve customer experiences.
3. Integrating machine learning
One of the major advantages of machine learning is that it will enable the insurance industry to evolve in terms of the way issues and anomalies are handled. For example, it can be used to identify fraudulent claims, as well as billing anomalies or out of date policies. It could also have a key role to play in ensuring that products are being correctly priced based on factors such as competitors and the wider market. Plus, machine learning can help to make the underwriting process faster and is easy to integrate with technology, such as Telematics, to ensure that premium costs are accurate and appropriate.
4. Applying analytics and big data
The insurance sector generates a vast wealth of data and increasingly advanced analytics are necessary to help process and optimise it. Analytics and big data have relevance when it comes to improving risk analysis and identifying ways to optimise processes to increase revenue. Predictive analysis is increasingly proving to be essential in the process of identifying fraudulent claims and analytics provide a very wide range of methods for insurance businesses to learn to better know customers. This could be something as simple as gaining greater insight into customer needs, history and behaviour patterns with a view to customising services and providing more personalised products.
5. Using AR/VR
The use of Augmented Reality / Virtual Reality allows businesses in the insurance sector to offer a more attractive experience to customers. There are many opportunities here, from employing VR to explain key policy content to using it to set up a test situation (e.g. a driving test) that can be used to establish the best coverage for a consumer.
The insurance industry is evolving at a significant pace today driven by a range of exciting opportunities in technology. From automation to Augmented Reality and Artificial Intelligence the boundaries of what is possible are being extended every day.