As consumers are looking for a more personalized experience, especially when purchasing something as important as Property and Casualty ("P&C") insurance, the digital revolution has offered a more innovative experience, however analysts caution insurance carriers to ignore the growing role of technology at their own peril.
Key innovations when implementing insurance technology ("Insurtech") include software as a service ("SaaS") migrations to the cloud for data management. Others include the adoption of Artificial Intelligence ("AI") with high-speed, omnichannel demands of modern consumers. On top of this, there is a continued rise of chatbots to handle customer service needs, and even walking customers through a policy application or claims process.
The Internet of Things ("IOT") is also a trending insurtech instrument for carriers - first utilized in the auto market via telematics devices to transmit real-time driving information directly to insurers. Capitalizing on the use of IOT has expanded into other sectors - employed in homeowners and commercial policies, for example - allowing carries to rate and price risk using more direct data, even preventing losses.
With the millennial generation attached to social media, there has also been strides in leverage social media data that has evolved beyond marketing and advertisement strategies. P&C insurers are able to improve risk assessment through mining social media data, bolstering fraud detection capabilities and fostering new customer experiences.
While more trends are entering the forefront of the insurtech boom in the insurance industry, 2019 will see streamlined processes, faster speed to market, smarter use of data and improved customer experience, if they are willing to depart from the traditional and embrace the present digital revolution.
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04 Feb 2019