The insurance industry is ever-changing, branching out and expanding with every change in legislation, law and technological advancements. Whether it’s business insurance, landlord’s insurance or other personal insurance products, technology can truly enhance and shake up how we offer and manage insurance policies across the entire market.
From the digitisation of almost all aspects of insurance to the introduction of Artificial Intelligence and automation, InsureTech – or insurance technology – is a wide, vast topic filled with possibilities and must-haves that we are eager to keep up with. We’ve dug a little deeper into some of the technology and tech trends disrupting and shaking up the insurance industry in 2022.
The Demand For Digital
The world was already heading towards a digital-heavy existence, but the Covid-19 pandemic has well and truly accelerated that particular development. Digitisation is quickly becoming a critical development that most businesses and insurance companies are having to keep up with, from something as simple as a well-working website to self-service digital portals that customers can use to manage their own policies. The increased demand for online services that have come about following lockdown policies and remote working, has led to a need for all businesses, including insurance, to adopt digital solutions that offer seamless and personalised interactions online. In short, companies are having to race to digitalise in order to succeed, grow and keep up with consumer trends and demands.
Artificial Intelligence and Machine Learning
Artificial Intelligence and Machine Learning are becoming increasingly common in every walk of life, and insurance is no exception. 2022 can expect to see more and more insurance companies adopt AI-driven cover. Artificial Intelligence could completely change and enhance the way that claims are made and assessed, with systems in the works that can assess the cost of damage via camera, cutting out the need for someone to come and visit a property or the lengthy process of calculating these costs. Claims could be made faster, more efficiently and with more accuracy than ever before all with the use of AI and machine learning.
AI could also have a place in improving quotes and insurance offers. Using AI, algorithms can learn the intricacies of an individual’s situation financially, where they are, the risks around them and what each business may face. It can carefully calculate premiums according to what is needed, offering a more detailed and personalised experience than ever before.
Data and analytics are a growing part of the business world, and insurance is no exception. Using analytics, insurers can better understand customer needs and behaviours in order to improve the customer experience and ultimately create a better underwriting experience. With Predictive Analytics, insurers can collect data and better forecast a client’s behaviour, and even use the same processes to conduct risk assessments for pricing, detecting fraud, prioritising claims, identifying with consumers who are likely to cancel and predicting renewal or purchasing trends. With this kind of information, insurance companies can offer personalised and useful products and services, while keeping on top of changing trends to ensure that the right insurance can be offered and managed at the right times.
The insurance industry has been notorious in the past for slow, lengthy underwriting processes that have been difficult and inconvenient at the best of times. Insurance underwriting can be a long and tedious process, usually involving a lot of paperwork, communication between parties and even the need for a client to sign paperwork in person. Automation, however, could transform all of that for the better. With the right applications, insurance could automate some of these more menial and tedious manual tasks, speeding up and often creating a more accurate result from the tasks. This can reduce wait times, increase the number of policies that can be handled at any one time, and even reduce the cost of a policy overall, resulting in increased sales.
Cyber Risk Management
The ONS has recently reported a significant rise in cybercrime and for businesses, this is undoubtedly going to become more of a hot issue than ever before. In fact, it’s predicted that cybersecurity could and should become a core subject for both insurers, and their clients. From policies that provide cover against cyber attacks to technology that can help insurance companies make more informed and safe decisions regarding cybersecurity, the possibilities are endless.
Insurance companies handle a huge amount of client data each and every day, and cybersecurity should be at the forefront of their concerns. Maintaining control and security around clients’ personal data is paramount to not only protecting their own business but of course, protecting the client’s business too. With improvements in digital technology and security, companies could analyse risks and better predict weaknesses or problems they may face in order to better prepare themselves before an attack can take place. Some AI programs can even monitor ongoing data to catch the early signs of a cyberattack so it can be blocked before it hits.
If you are looking to improve your insurance policy, we are on hand to help. We are always looking for new ways to improve our policies for our clients and can offer personalised and in-depth policies to ensure you are getting the right cover for your business. Get in touch with Ashburnham Insurance for more information.