Technology is changing the world in many ways. Technology is making its way into the home, work, where we shop, and how we buy. For the insurance industry technology is having an impact on almost every aspect of business. Not only has technology revolutionized the way insurance is calculated but also how evaluations are made in real time. Now, here are some more ways technology will modernize the insurance industry.
Like many other industries, the insurance industry is not immune to automation. There is much room for change in the insurance industry and its ways of working and operating. Automation will also enable the packaging of Small parcels of insurance protection that cannot be packaged and sold with human input and still remain cost-effective. Customers demand a purely digital experience that does not require human contact when a machine will do.
Advances in technology make it easier to gather personal data on customers and their individual risks. When you add together the massive growth in new sources of data together with tech enabled data science, it is inevitable that premiums will become highly personalized. This will be enabled by tech such as wearables, telematics, IoT, smartphone apps. Not to mention the ability to build insights through relationships that exists across data sets.
It is hard to find anywhere in the world where lifestyle apps are not the norm. This makes it the perfect vehicle to provide the peace of mind that customers want when they buy insurance. Instead of the annual chore of hunting for the lowest priced insurance then having nothing more to do with it unless you suffer a loss, lifestyle apps offer value daily. This makes them sticky which, for insurers, means less churn. It also gives insurers greater insight into their customers’ behavior. Which means better informed risk assessments and personalized premiums.
There are many changes coming to the insurance industry and it looks like they will be a good thing for all.