11 Smashing Tech Trends in the Insurance Industry
Find out more about what’s happening on the tech side of the industry right now.
After the Covid-19 crisis, insurance companies are eager to embed technologies that can be scaled and updated with changing demands of the market. What’s new in the tech side of the domain and what things are already fading away? We collected 11 hottest insurtech trends to help you keep pace with the domain in 2022.
Customers are looking for personalized experiences, and AI offers insurers the ability to create such: faster access to data and cutting out the human element lead to more accurate customized reporting in shorter periods of time. Moreover, according to PwC, special functions such as fraud prevention, anti-money laundering and underwriting are set to be improved using AI.
A 2018 report from Valen Analytics proved that using predictive analytics and modelling can save up to 9% of insurance companies' budgets, and since then insurers continue to grow in use of predictive analytics tools. In 2022 they will use it mainly for pricing, identifying risk of fraud, triaging claims, and anticipating risks and trends.
According to the SMA report, machine learning had a great potential not only in commercial, but also in personal policies. It automates claims processing, policy administration and risk assessment – with ML they all can be analyzed using pre-programmed algorithms, leading to improved processing speed and accuracy.
Internet of things
In 2022 insurers will use more and more data from IoT devices such as wearables, smart homes components and automobile sensors. Use of IoT technology will not only improve the accuracy of pricing policy and risk assessment, but also help both insurance companies and their customers to save money and prevent possible losses.
The question of data security is in the first place for the industry, that's why blockchain will continue to grow its share here. Blockchain technology enables safe business transactions and information exchange, removes costly layers of overhead for verification, improves claims processing and fraud detection, leading to enhanced companies’ efficiency.
Insurance startups are leveraging the latest insurtech trends to get better real-time data, predictive analytics and reduce operational costs. With the help of insurtech companies can efficiently respond to numerous micro and macro risks, such as cyber attacks or slight climate changes, which takes customer experience to the next level.
According to Finance Digest, 95% of customer interactions in different domains will be powered by chatbots by 2025. Starting from automation of simple typical requests and ending up with complex multi-stage issues processed by AI and entire virtual voice assistants - in less than 3 years humans will cover only 5% of all requests, while chatbot technology will continue to gain its popularity.
Shift to digital
A significant increase in the adoption of digital transformation strategy and tools among insurance agents, started in 2020, will continue and only gain its force in 2022. This happens due to the rapidly changing customer demand as well as the use of self-service digital channels.
Social media data
Use of social media data not only simplifies the process of interacting with customers, but also improves risk assessment and fraud detection, claims Morgan Stanley report. Insurers look at the social activity of insureds and compare it to claims records, investigating fraud.
Now insurers need to operate with different software platforms, deploy updates and even launch new products. It takes a lot of time, so in order to cope with the workload, insurance companies adopt low code software, which allows them to quickly implement new user interface features that customers demand. It not only increases speed to market, but what's important, widespread app development across the company and empowers employees to take control of their work.
Plus to this list of popular technologies we can also add telematics as an emerging trend - the use of monitoring devices right in the car to measure personal data on speed, location, accidents, and much more. This technology helps to decrease claims costs for insurers and encourages better driving habits.
Insurance industry is coming into the era of new customer experience, so if you want to find out more about what’s happening here right now, read our article Top 5 Insurance Industry Trends in 2022.