The insurance industry has often been confusing, but things are even more complicated to keep track of these days. Customers might find themselves looking at how technology has improved other industries and wonder how to harness it and improve their insurance experience.
Fear not! We’ve made this quick guide to give you a better understanding of recent changes and how they may benefit you.
The History of Insurance & Technology
The insurance industry can trace its roots back over 600 years old. It’s a long-standing business designed to protect against risks, covering everything from cargo and property to death and medical treatment. The goal is to mitigate the loss due to disasters that could leave customers financially liable for years to come.
However, it’s not an up-to-date industry. In fact, until relatively recently, insurance still functioned on original underwriting models, shying away from using new technologies as they came out. Plus, comparing quotes across carriers is burdensome, often requiring multiple calls to insurance companies. How inconvenient!
While technology has improved the process of getting multiple, provisional quotes, it does not solve the entire problem.
Why Technology is Changing the Insurance Industry
Traditional, provisional quotes often lead to further questions and higher prices. Consumers view this as a classic bait and switch tactic, resulting in mistrust. Emerging technologies and the use of artificial intelligence strives to limit provisional quoting and offer customers a committed, bindable quote.
Additionally, when faced with an issue, the last thing people want to do is pick up the phone and speak with a representative to troubleshoot the problem. Insurance agencies realize that customers are demanding a better experience and are upgrading their platforms accordingly. These emerging technologies are also saving customers money, which they like.
Gone are the days of unnecessary mountains of paper! Are you curious to see a simple breakdown of how the updated use of technology is helping cut down on costs and streamline processes? Keep reading.
How Technology Changing Insurance
Our unique Embedded Insurance® platform does the homework for you – gone are the days of provisional quoting! We research prices and policies across multiple carriers to provide a bindable custom-built policy right when you need it most.
Furthermore, insurance companies have taken a keen interest in artificial intelligence (AI) learning. Customer inquiries, claims reports, and data analysis require significant repetition, but leveraging AI to handle these proceedings can cut back on time and cost. Before too long, individuals could be dealing exclusively with AI programs for help with their insurance.
Some of the sectors currently looking to leverage AI technology include:
- Automotive Leasing & Purchasing
- Motor insurance
- Pet insurance
- Home insurance
The AI systems will be able to analyze consumer data regarding driving and claims history, requiring less input and work of the consumer. As a result, agencies will have to hand the files off to fewer people, reducing the amount of money they spend and ultimately lowering customers’ costs.
Is there a Projected Growth of Insurance Technology?
The adoption of insurance technology isn’t just a hot trend – these technologies are so effective that there’s almost no room for human error. These technologies will be around for the foreseeable future. There are expected to be even more updated systems in the coming years.
These AI advancements are redefining the role of an insurance broker. It increases the ability to assist end-users while providing more than just a list of pricing options. Now, people can get more information when reaching out for assistance. Chatbots are a prime example of AI technology being used to help users with claims. These systems gather the necessary data to put customers through to the correct department.
It’s expected that over 75% of insurance companies will be using AI technology in some manner before the end of the decade. Many of them have already begun using Chatbots as a way to streamline inquiries. As this technology continues to develop, customers may come to realize that the process of starting an insurance claim becomes virtually painless.
Embedded insurance is a means of abstracting insurance functionality into technology. This is what enables third-party services to help provide customers with information. Embedded insurance is expected to grow by 20% in the next five years, meaning customers will be able to manage their insurance more effectively. As embedded insurance continues to grow, so does the market valuation for the new technologies, which is expected to reach $8 Billion by 2028.
Insurance Technology FAQs
How Has New Technology Affected the Insurance Claims Process?
It has created a smoother, faster process.
The implemented AI systems contain the necessary data for an introductory call, cutting down on the number of transfers a customer is faced with when calling the support line. Consumers will even find that, on occasion, they won’t have to speak to a live representative to access the information they’re looking for! Customers may find themselves less likely to put off contacting their insurance agency when filing a claim.
Will Artificial Intelligence replace Insurance Specialists?
Nope! It’s going to make their job easier.
By speaking with an AI system before a live person, consumers will skip a lot of the back and forth between different representatives (goodbye, headaches). The technology ensures that customers are transferred to an agent in the correct department while also passing on the customer’s relevant data to the, streamlining the call.
AI technology will make insurance brokers and agents more effective and significantly reduce the time a customer spends on the phone, creating a stress-free environment for both parties.
The goal of AI technology related to insurance agencies isn’t to replace brokers or agents but to ensure the consumers are presented with the best experience possible.