It is believed that the insurance market is not as technologically advanced as, for example, the banking market. You don’t hear about revolutionary changes in insurance or technological breakthroughs. It seems that insurance companies are watching other people’s innovations and embracing them after a long wait in other markets.
But of course, not everything is so sad. In fact, the insurance market is facing a technological revolution. Currently, there are three main blocks of technological innovation in insurance. These trends can change the landscape of the insurance market, business models and technology platforms.
Trend 1. Remote communication with customers, insureds and insurance subjects
Telecommunications is by far the most famous sector in this field. With the help of special equipment installed on the customer’s car, the insurance company can monitor driving style. So – to determine the level of risk. At the same time, careful drivers can receive significant discounts from insurance companies. Now, the popularity of telematics in auto insurance is growing worldwide.
Telematics will be used in all types of insurance and most importantly it will even change the way we live.
Telematics technology is spreading from motor vehicle insurance to other types (property insurance, cargo insurance, etc.). Telematics can protect Smart Homes from robberies and many unforeseen situations. In transportation, the path of goods is tracked using telecommunications.
Medical telematics – an ecosystem of wearable devices, various monitoring devices. Such software for insurance companies allows you to track health and lifestyle metrics. These parameters include heart rate, number of steps, physical activity, blood sugar, etc. Insurance products based on health monitoring will bring profits to customers and insurance businesses. In addition, they will allow people to take control of their health, leading a suitable lifestyle. It can be said that the spread of this technology will go beyond the boundaries of insurance and will become a new direction for human social life.
Trend 2. Big Data, Business Intelligence and Smart Solutions based on it
Big data and business intelligence tools can analyze different factors that influence risks and losses. The use of these technologies helps reduce costs and optimize daily business processes of insurance companies. Companies that automate risk analysis will get more value from all sources of information and identify risks at an earlier stage.
Consumers will also benefit greatly from this. Focusing on hundreds of customer behavioral factors, insurance companies can calculate individual rates. Therefore, customers with a positive insurance history and low risk will receive much lower rates.
Besides, thanks to the spread of Big Data, on-demand insurance is actively developing. These are programs that let you put insurance in the form of an app on your smartphone when you need it. For example, during a trip or home insurance at the time of departure.
By focusing on specific customer behavioral factors, insurers can calculate customized rates. Therefore, customers with a positive insurance history and low risk will receive much lower rates.
Trend 3. Digitize all business processes and insurance stages. From purchase to settlement of insurance events
Blockchain has proven to be very effective here. Solutions based on it allow you to check the personal data of the insured and adjust the parameters of action on the subject of insurance. This approach can be applied to both policy issuance and complaint handling. That is, they work to reduce the incidence of fraud losses.
Blockchain-based mutual insurance companies are increasingly appearing in the world. This is a new round of interest in mutual insurance systems – an analogue of P2P lending. But it is used for risk management and payment for insurance events. This idea itself is of course not new, but it is blockchain that has opened up great prospects for this model.
Synthetic
The global insurance market is estimated to be worth $5 trillion. The market for advanced technology in insurance is on the rise. Investments in insurtech amount to about $3 billion per year, and this number is expected to grow. Every year around 500 insurtech startups are launched in different countries. Insurance digitization is a new level of insurance products and customer service. It reduces costs, calculates risks and increases customer loyalty. It also allows you to set up insurance policies.
Startups provide platforms for customer identification, use drones for remote monitoring, and resolve insurance events. New companies are introducing telemedicine and telecommunications, neural networks and self-learning artificial intelligence. The latter can sell insurance products, perform expert calculations and catch fraudsters. So we can be sure that insurance will soon change as much as it has not changed in the past twenty years.
Categories: Technology
Source: SCHOOL TRANG DAI
