February 28, 2021

How technology is contributing to disruption within the Insurance Industry

Mr. Pankaj Chauhan, CEO, and MD, EPOCH Insurance Brokers.

Technology has revolutionised every part of the world we live in, and is currently the second largest force that is transforming human needs and the nature of business. It goes without saying that the insurance business here is no exception.

Technology has recently been driving progress in the insurance sector , contributing to a range of milestones. The giant leaders in insurance have started to migrate to the new disruptive technology that will help them become more customer-centered and establish operational excellence.

Some of the insurance sector ‘s biggest technical advances are:

Increase penetration and sale in existing markets

A field of great global concern within the insurance industry is the entry of new markets and the growth of existing ones. Effective business strategies include a high rate of growth, increased scale and greater focus on life insurance for insurers joining or increasing in emerging markets.

AI and IoT

Advances in artificial intelligence enable incumbents to automate ever more complex tasks, including addressing all forms of customer queries. Not only does the development of AI in insurance speed up the time it takes for a customer to buy a policy or settle a claim, it also requires historical and behavioural information such as a driving record and creates more customised packages. In addition, a suite of Internet of Things ( IoT) technologies will help minimise manual claims and pricing interventions for insurers with more advanced technology capabilities.

Blockchain promoting transparency

In the insurance sector, blockchain technology will drive fundamental change, while increasing transparency and outcomes throughout the value chain.

There are many problems in the insurance sector, such as complex enforcement concerns, restricted growth in developed markets, payment transactions by third parties, fraudulent claims and the processing of large volumes of data. The data can be accessible by using Blockchain technology, making the process transparent and secure.

It can easily delete suspicious transactions and repeat them by documenting every transaction. It can also properly handle, distribute and monetize vast volumes of data, saving a significant amount of time in turn.

Expecting customers

Customers have more advanced and nuanced expectations, and they are more conscious of their options than ever before. They want personalised service and customised contact, which is why insurers need services to be digitised and all communications streamlined. 80 percent of consumers are prepared to use digital and remote channel options for different uses, activities and transactions, according to the Global Consumer Insurance Survey.

RPA – for managing claims and data management

Robotic Process Automation ( RPA) automates the mundane routine workflow of the insurance industry. It thus decreases the workload and running costs and increases the satisfaction of customers. It also eliminates claims processes by automating the method of data collection.

When it comes to manual data processing and entry, it’s also a difficult task, and could lead to inconsistencies and errors in data management. RPA simplifies the method of large-speed data management.

At the elevation of emerging technologies

Other technologies such as cloud computing, advanced analytics, GPS ( Global Positioning System), telematics, digital networks, and drones offer new ways of risk assessment and monitoring, customer connection, and insurance expansion. They also encourage the development of new insurance services , products, and business models.

Through Technology we can smooth the functioning of the following systems:

Automation of Internal Workflows:

Technology is used by insurers to automate routine activities that are normally associated with collecting data from a back-end system or putting information in a back-end system. With its assistance, software robots can be invoked to remove repetitive work done by individuals at various points in the overall business process.

Hassle free  insurance

The process is time-consuming, from purchasing a policy to raising a claim, and paper-intensive. To fix these issues, one can use technology to make the customer experience very smooth and problem-free. It would also decrease the risk of the insurer, and the profit can be passed on by lower premiums to the consumers.

Insurance in Telematics

One of the digital technologies that will have a dramatic effect on the insurance industry is telematics. With their support, insurers will increase their level of customer contact to provide additional services and boost their profitability through specialisation. Telematics may also aid in determining risk and estimating the expense of renewal premiums.

Insurance Chatbots

Today, cognitive computing or chatbots are commonly used for insurance. They can be extremely powerful, growing human engagement and decreasing process turnaround time. The majority of chatbots are used to answer commonly asked questions and to address client queries instantly.