Insurance

5 Ways Technology is Changing the Insurance Industry

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Digital transformation is sweeping through many industries, changing the way we work and interact with consumers. While the insurance industry has traditionally been reluctant to adopt new technologies, a 90% reduction in the time spent on key insurance processes or the 65% reduction in costs may be responsible for enticing many insurance providers to jump on board the technology train. Doing so allows them to take advantage of the benefits technology offers businesses and consumers alike.

Whatever the reason, insurers are changing how they interact with customers, making life easier for everyone. Regardless of whether these providers are in the field of automobile or apartment insurance, these digital innovations are permeating all realms of the industry and making their advantages known. Below are five key areas that insurance providers are using technology to help consumers.

  1. Better Customer Experiences

The days of re-telling the story of your accident to a line of insurance agents each time you call about your claim are disappearing. A number of differentclaims management software optionsare enabling better access to customer histories and associated data so that claims can be processed more quickly. Information is stored centrally so agents or bots are able to access the same information and provide a streamlined, seamless experience for claimants.

  1. Self-Service Insurance

Self-service models for grocery stores,gas stationsand other services are making life easier for consumers in many sectors. The insurance industry is beginning to adopt a similar approach as consumers become more comfortable completing serious life tasks such as taking out a mortgage or booking international flights with a click.

In fact,61% of consumersbetween the ages of 18 – 54 like the idea of being able to purchase life insurance online without speaking to an agent. Self-service dashboards enable consumers to find the right policy for their individual needs, make a claim, and even track the claim process from a single platform.

  1. Streamlined Claims Processing

When the need to make a claim for an automotive accident arises, the laborious process of informing all parties about it can now be done via our smartphones. There’s no longer the need to speak with an agent. Centralized systems with customer dashboard access have taken the pain out of making a claim and informing all those involved of the details needed to process it.

  1. Finding the Right Policy

Just as utility companies or flights can be compared easily online, consumers looking for the best insurance policy can use websites to compare complicated policies and costs by inputting a few simple details. Once the various options are presented you can even take out your cover on the spot without the need to speak with an agent.

  1. Pro-Rata Insurance

The ability to insure items only when they are being used is becoming more common. Long term insurance policy options that require expensive items such as jewelry or cameras to be covered even when they are safe are starting to be complemented with on-demand policies.

Companies such as Slice are giving consumers the option of on-demand, pro-rata insurance policies for homes, cars, and expensive items only when they need it. This enables people renting their homes through shares like AirBnB or participating in carshares to get cover for themselves only when it’s needed.

As technology advances, the potential for further digital disruption is certain. AI, blockchain, and the Internet of Things (IoT) have the ability to bring further transparency, better protection of our data, and even prevent policy holders from making unwise decisions, like driving under the influence.

Now that the insurance sector has realized the benefits technology brings for their business models and consumers, the ones who continue to provide customers with what they want via technological solutions are sure to take the lead on competitors.

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Rae Steinbach

Rae Steinbach is a graduate of Tufts University with a combined International Relations and Chinese degree. After spending time living and working abroad in China, she returned to NYC to pursue her career and continue curating quality content. Rae is passionate about travel, food, and writing, of course.