Technological advancements are reshaping industries across the board, including the insurance sector. Insurers are actively adopting new tech trends to optimize their operations. They are employing AI to revolutionize claims management and underwriting, migrate their tools and data to the cloud, and modernize their legacy systems.
Forward-thinking insurance companies are pursuing these strategies to thrive in a rapidly evolving landscape through continuous innovation.
The insurance sector must embrace a comprehensive digital mindset for better customer service. That makes it essential to monitor industry trends and ensure your company’s technology strategy is up-to-date.
In this article, we will explore some of the emerging trends in insurance technology that can assist insurers and insurance companies in implementing effective growth strategies.
Key InsurTech Trends to Consider
The global insurance technology (InsurTech) market seems to have a promising future. It is expected to reach $14.37 billion in 2023, with a CAGR of 36.52%. Looking ahead, the market is projected to reach nearly $49.78 billion by 2027, with a CAGR of 36.42%.
Therefore, insurance companies should capitalize on emerging InsurTech trends, such as:
Predictive Analytics
By using predictive analytics, over two-thirds of insurers have managed to reduce claims and underwriting expenses. Additionally, 60% claim that the information collected has helped to increase sales. Today, multiple insurers can use predictive analytics to collect a wide range of information for evaluating and predicting client behavior.
It can also assist them in:
- Pricing and risk assessment
- Detecting faulty claims
- Identifying clients at risk of cancellation
- Classifying claims
- Detecting fraud
A leading insurance provider, Corvus Insurance, offers similar services. The company makes use of AI tools for recognizing and predicting risks and helps insurance brokers estimate losses and protect policyholders.
Insurance Software System
The insurance sector is developing rapidly. Therefore, insurance companies must be capable of addressing ever-changing customer needs and compliance requirements. It is essential to manage growing policy volumes and offer advanced online products and experiences.
Digitalizing interactions with vendors and customers will help cater to customer expectations. To ensure awareness, each team member is informed of new updates or regulation changes. When it comes to investing in online insurance solutions, the correct choice starts with learning about an insurance software system and embracing it.
An insurance software system is designed to assist insurance agencies, carriers, or brokerages in managing their daily operations. When it comes to the administrative side, the system helps track policies and claims information and effectively manages the team at work.
The software is a blend of CRM (customer relationship management) and BPM (business process management). It acts as an online hub for facilitating the organization’s primary insurance processes.
The benefits of using insurance software include:
- Enhanced productivity and efficiency
- Better communication with carriers and agents
- Reduced overall expenses
- Enhanced customer service
- Effective compliance management
- Better data security
- Provides reports and analytics
VRC Insurance Systems asserts that a policy administration system directly impacts a company’s operational efficiencies, deliverables, and speed to market. Therefore, companies need agility, integration, scalability, and reliability. This is exactly what the leading players in the insurance software niche are trying to provide for their clients.
With an ideal software solution, insurance companies can seamlessly control workflows and streamline the insurance process. By doing this, companies can quickly respond to market changes and gain a competitive edge over other market players.
Field Management Systems
There’s more to InsurTech than implementing new technologies and digitalization. Its primary objective is to integrate and optimize every stage of insurance, right from buying to managing claims. When it comes to car or home loans, the claims raised should be validated in person. Hence, businesses should establish an on-ground team to inspect and approve claims.
Traveling far for such a task and returning daily for CRM updates can be taxing for the team involved. Therefore, incorporating a field management system with an insurance company’s CRM enables managers to monitor the field team’s activities and their progress. Additionally, it automatically assigns leads based on availability, proximity, and a representative’s skill set.
Digital Documentation
Financial institutions and insurers sift through ample paperwork every day. Digital documentation can eliminate this unwanted paper trail that can lead to errors. Digital documents prove to be a valuable asset for insurers using OCR (optical character recognition) methods.
The OCR method refers to technology that helps identify digital and handwritten text. With this technology, insurance firms can quickly add data to their online client profiles from forms and ID images. Additionally, it assists in electronically examining documents and rejecting them if they are:
- Analyzed
- Digitized
- Stored in the cloud
Currently, developers are working to improve the accuracy of fundamental machine learning algorithms used in OCR technology, especially in cases of inaccuracies and data discrepancies.
Conclusion
In November 2022, a Forbes news report stated that the insurance sector had shown great adaptability and resilience over the past few years. With the development of online technologies, carriers have identified new capabilities for generating operational efficiency, ease, and transformation.
To bring about a positive change and achieve better business development, insurance companies should focus on emerging InsurTech trends. From advanced field management systems to insurance software, insurance companies should invest in the necessary tools to thrive in this competitive insurance landscape.
This will not only cater to their customer demands effectively but also empower their teams to increase overall productivity.