The insurance trends enhance the virtual experience of consumers, lower operating expenses, improve service, and take capacities to a higher level.
According to Technavio, the insurance technology market is growing at 45% yearly. Here are some insurance technology solutions that will determine the growth of this sector.
Artificial Intelligence for predictive analysis
An insurer’s profitability depends on how the company manages data, assesses it, and makes predictions. Hence, firms now implement data analytics on a bigger scale. AI is a recent technology helping with it.
According to McKinsey, in 2030-40, around 10 to 55% of the insurance tasks will be automated, from processing the claim to record keeping, invoice making, etc.
By assessing bulk data, AI insurance will help insurance companies take preventive measures to set better prices, identify policies with higher risk, detect any fraudulent action in the company, and forecast trends in the field.
Some online banking research companies use predictive analytics to lower their loss by 3 to 9%. AI helps insurance companies accomplish a high level of personalization, which 80% of customers demand. It also speeds up underwriting and claim processing, which boosts customer experience.
The IoT for the prevention of loss
The IoT connects digital devices from intelligent homes, phones, and cars to many other pieces of equipment to help produce valuable data for insurance companies.
Before IoT, insurance companies offered discounts to homeowners with security systems. Today, insurers can get good policies with IoT devices. If a policyholder has an IoT device, they can track all anomalies on their property.
A connecting device will immediately notify you about an incident. According to Allied Market Research, the global IoT insurance market will flourish from $8.63 billion in 2019 to $300 billion in 2027.
Chatbots for round-the-clock communication
Though chatbot technology depends on AI and Ml, it is put here because of its importance. A chatbot interacts with customers and helps them in place of an insurance agent. According to Servion, 95% of customer interactions will be via virtual assistants by 2025.
A chatbot can advise insurers and help them at any time of the day, even on weekends and holidays. Customers appreciate such round-the-clock support. And it also frees operators from heavy workloads.
Also, because of virtual assistant insurtech software, customers enjoy customized services and are immediately provided solutions to their problems. It further eliminates the need for manual intervention.
As per NMSC, the worldwide chatbot market in BFSI will grow from $586 million in 2019 to $7 billion in 2030.
Drones for assessing risk and loss
Unmanned aerial transportation is being adopted in the insurance field. Companies are using drones to assess risk before policy issuance. It helps calculate the losses after incidents and suggest preventive measures for the insured.
Despite the fact that chatbot technology relies on AI and Ml, its significance warrants its inclusion. In place of an insurance agent, a chatbot interacts with customers and provides assistance. By 2025, 95% of customer interactions will be handled by virtual assistants, according to Servion.
Even on weekends and holidays, a chatbot can offer insurers advice and assistance.
Support that is available at all hours is appreciated by customers. Additionally, it relieves operators of burdensome duties. In addition, customers benefit from individualized services and immediate assistance from virtual assistant insurtech software. It also makes it unnecessary to perform manual intervention.
Conclusion
Insurtech software solutions are transforming the insurance industry. They enhance the virtual experience of the customers by reducing operational expenses and improving services. With the intense competition in the insurance sector, leading companies should follow these trends to continue ruling.
IT is bringing insurance firms into a new domain, helping enhance business models for a better entrepreneurial culture.
