Insurtech Trends 2023: How Technology is Changing the Insurance Landscape
- Companies are adopting insurtech trends rapidly to deliver the best services and results to their clients.
- Technology has introduced a revolution in the insurance sector.
- The benefits of insurtech trends are not limited to insurers; even drivers are leveraging these trends.
- Drivers can now get much affordable insurance rates with modern insurtech trends.
Technology is transforming every sector of our life; from online shopping to online working, everything is possible from the internet now. And similar transformations are witnessed in the insurance industry. Gone are the days when we used to visit multiple offices to get insurance claims and when insurance companies used to take months for inspection and claim processing.
With the advancement in the technology insurance industry is witnessing a revolution in every aspect and we are here to discuss the top trends that are transforming the car insurance industry rapidly.
What Insurtech means?
Insurtech refers to a combination of insurance and technological innovations that help the insurance industry to become more efficient.
Insurtech is helping multiple companies to create, distribute and administer the different departments of the insurance business.
12 Insurance Technology Trends Transforming Industry
- Predictive Analytics
- Artificial Intelligence
- Machine Learning
- Cloud Computing
- Automated Workload Balancing For Quotes
- Low Code
- Telematics For Usage-Based Insurance
- Underwriting Programs
- Digital Distribution
- Virtual Assistants (Chatbots)
- Data Robotic And Drones Insurance Technology
Now that we know what exactly is insurtech; let’s have a look at the top trends in the insurance industry:
1. Predictive Analytics
Insurance companies and their agents are using predictive analytics to dynamically adjust insurance policy quotes for drivers. With this insurance industry trend companies are now providing pay-as-you-go as well as a dynamic pricing model to the drivers.
Every year the USA is facing more than $80 billion loss for fraudulent activities in the insurance sector. In most cases; agents are more involved in fraud as compared to drivers or customers. And predictive analytics is playing a vital role in detecting these frauds beforehand and saving companies as well as drivers from huge losses.
2. Artificial Intelligence
Insurance companies all over the globe have accepted the fact that AI is transformational and necessary for their growth. Artificial intelligence can be used to detect fraud, assess risk and reduce the chances of human error to a huge extent.
This is helping the companies to sell more suitable plans to the customers that are in their budget. Moreover; the insurance companies are also witnessing some transformation in claims processing areas too. Now the agents are finding it easy to determine the factors behind the claim and forecast the potential cost.
3. Machine Learning
Nowadays; drivers are looking for personalized or custom-made policies. Machine learning is playing a major role in determining the type of policy for every customer based on his or her requirements.
On the other hand; insurers are also using Machine Learning as a way to assess the risk factor while selling a policy to any driver. The insurer can check the chances of losses with every driver and adjust the policy fees accordingly.
4. Automated Workload Balancing For Quotes
Automation is transforming the regulatory compliance and underwriting sector of many insurance companies. Insurance companies are now doing better customer research to understand their target audience more deeply.
Another aspect of automated workload balancing in the insurance industry is compliance checking. There are multiple compliances that every insurance company has to comply with. Breaches to these compliances can lead to huge operational as well as financial damages to any insurance company.
From smart contracts to fraud detection and risk management; blockchain is getting into the roots of the insurance industry. Companies are relying on contracts that are script-like codes containing rules of the business. These codes execute automatically when a transaction occurs.
Blockchain is also enhancing the efficiency of insurers as it saves a lot of time in manual work and streamlines the entire process easier. Another major reason for adopting blockchain is security based on cryptography. All the transactions by customers and companies will be encrypted and secure because of the blockchain.
6. Data Robotic And Drones Insurance Technology
According to most car insurance companies; robots and drones are making the processes more effective, efficient, and safer. Drones are helping the field claims inspection team as well as the risk control professionals in every insurance company.
On the other hand; robots are being used where human adjusters and image analysis systems are required. It is easy to capture a 360-degree image with robots and also detect hot spots with a thermal camera. In short, any dangerous or repetitive task required by the insurer can be performed by a robot with better accuracy and clear results.
7. Cloud Computing
We all know that insurance companies have a massive amount of data about their customers and they want to use it to deliver the best results. Cloud computing is the answer to this problem. You can not only store the data in real-time you can also analyze it and add value to your processes with data.
Insurance companies now no longer have to rely on vague testimonials for claims corroboration. Telemetry devices store all the data of the driver like its driving habit, speed, braking habit, etc.
Cloud computing is also helping drivers in accident prevention. The driver will get a warning about the condition of the road in advance to drive safely. This reduces the chances of getting into an accident.
8. Low Code
Did you know? 7% of insurance companies in our country lack the skills and capability to implement IT-related trends or operations. Insurance companies are always looking for ways to reduce software development or investment cost. And low code development is the perfect solution for such companies.
Low code development eliminates the need for an elite coding team and companies can adopt changes faster. Now new ideas, systems, and tools can be created and deployed within weeks, unlike the older times when basic changes used to require huge time and a team of developers.
With low code development, you will also eliminate the dependency on an external team. Your own experts can add the changes in the system easily with a basic knowledge of how things work and what is required.
9. Telematics For Usage-Based Insurance
Usage-based or pay-as-you-drive models are also trending around the country, especially among the good and experienced drivers. In usage-based insurance, the company uses telematics to check the driving habits of the driver.
Telematics usually come with cellular, GPS, or local storage options which keep a record of the driver’s behavior. This includes the average speed of the car, acceleration, hard cornering, miles driven, and even using a phone while driving.
Drivers are rapidly adopting usage-based insurance with the hope to get affordable policy premiums as a result; companies need strong telematics to keep up.
10. Underwriting Programs
Every insurance company is either planning or already has hired underwriters for their risk assessment. Underwriters are well-developed programs that can identify the risk and help the company to decide if it should sell its policy to that customer or not.
Underwriters review existing information about the driver to identify the risk factors and their impact. Then the program will determine the conditions under which the policy should be sold to the risky driver. And then it will come up with a list of solutions to eliminate or reduce the risk with that driver.
In earlier days; underwriters were humans with special training and skills but now companies are relying more on computer programs to get accurate results.
11. Digital Distribution
Companies are adopting digital channels and platforms for better operations, especially after the COVID pandemic. Also, customers prefer online procedures to save their time and money. Keeping this in mind insurance companies are adopting digital distribution methods.
Digital distribution is helping insurance companies in lead generation, social analytics, customer insight generation, and click analytics.
This is helping the companies to scale their distribution smoothly without any intervention from third-party agents. With data like claims experience, buying experience, communication experience, and renewal experience the companies are now learning better ways to keep the customers engaged.
12. Virtual Assistants (Chatbots)
Chatbots are playing a vital role in many industries and companies to capture leads and resolve customer issues. Your customer care representative can not be available 24/7 but chatbots can do that easily.
Whenever a person lands on your website the virtual assistant will quickly ask him or her if they need any assistance. While assisting the customer the bot will ask for the contact details and your sales team can then use it as a potential lead.
Also, virtual assistants are playing a huge role in the customer service department. With the help of some predetermined FAQs your customers can get solutions easily this will save their time and improve customer satisfaction.
How RateForce Works With Current Insurtech Trends?
Since its inception; RateForce is all about technology and transformation. We are using top technology trends to provide the best rates from the best car insurance companies to our customers all over the country.
By using trends like artificial intelligence and machine learning we determine which is the most suitable company for our customer. Our team relies on accurate data and results created by our low code algorithms to help our customers buy the best policy in their budget.
Frequently Asked Questions
How technology is changing the insurance industry?
Modern technology is allowing insurance companies to effective risk management and better insights into customers’ preferences with data.
What technology do most of the top insurance companies use?
There are a lot of different technologies that different companies are adopting; some of them are Machine Learning, Predictive Analytics, Internet of Things (IoT), Insurtech, and Artificial Intelligence (AI).
How much do insurance companies spend on technology?
This depends on the requirement and budget of a company but as per recent data by Statista; in 2018, insurance companies in North America spent around 82.6 billion U.S. dollars on multiple information technology hardware, software, as well as services.
Which technologies are the best for claims management?
Artificial intelligence, machine learning, and data science provide accurate insights that help companies in claim management.
Which are the top five modern insurance companies in the USA?
Over To You
Nobody wants to wait for weeks or months to get their claim processed. In this tech-savvy era; it is important to select an insurance company that is using modern solutions to provide you with faster solutions. If you are looking for an insurance company that uses insurtech trends in 2022 then we are here for you. We provide cheap car insurance from top car insurance companies in your city.
- Referred to an article by Fortunly to check the rising fraudulent activities in the car insurance sector on 9th May 2022.
- Read an article on Forbes about the adoption rate of usage-based insurance among drivers of our country on 9th May 2022.
Editorial Guidelines: The above is meant as general information to help you understand the different aspects of auto insurance. This information does not refer to any specific auto insurance policy. Coverages and other features vary between insurers, vary by state, and are not available in all states. References to costs of coverages/repair, average or typical premiums, amounts of losses, deductibles, etc., are indicative and may not apply to your situation. We encourage you to speak to our insurance representative and to read your policy contract to fully understand your coverages.