The Covid-19 pandemic marked an event that marked the beginning of a new phase for the global insurance industry. 2020 was filled with massive reversals in how the whole sector looked to the future. The recovery phase began in 2021, where the main focus was on meeting changing customer expectations and expectations on 2023 is expected to propel the industry further on its way to massive digitization for customers. With the increasing rate of technology adoption across all sectors and sectors, insurance companies can’t afford to fall in the race. The latest technology trends provide opportunities for growth for insurers which you do not want to be left out of.
The technological advances were already causing a significant disruption to the business. The pandemic was a catalyst to the process. Companies that adapted to the demands of rapidly changing times could attract more customers from those within their homes.
To help you keep pace with evolving customer expectations, we’ve highlighted the most popular technological trends in insurance. Be sure to buckle up your seatbelts, as these trends will change your relationship with your policyholders.
Know more What is Insurance: Definition, Components, Benefits and Types
Key Insurance Industry Technology Trends in 2023
1. Automation in Underwriting Process
The automatization bug has finally struck the insurance industry. The old tradition of paper and signatures on paper appears to be declining. Insurance underwriting can be lengthy and exhausting because it requires coordination with many agents and clients daily. This creates a lot of stress which can affect the quality of the work. Automating the underwriting process has significant potential to solve this question
Projects for developing insurance applications have already helped insurance companies simplify this manual process. According to a study, 74% of companies that benefitted from accelerated underwriting have experienced a decrease in policy wait time, 59% have experienced an improvement in insurance cost, and 37% have experienced a sales increase. So, this trend of underwriting automation will continue to grow in 2023.
2. Self-service available to insurance policyholders
In the age of digitalization, it’s no surprise that consumers’ preferences shift towards self-service capabilities.
Many people expect their insurance companies to provide a self-service platform that allows them to manage their policies, pay and submit claims. In reality, 72.7% of tech-savvy customers are looking to renew or apply for policies electronically. In the case of non-tech-savvy consumers, 57.6% of those polled agree with the importance of digital management of policies.
3. Creating a Seamless Claims Experience
A clean and efficient customer service is a must for any business in the insurance industry. The most crucial experience for any customer is the claim process during times of crisis. More people will likely be happy with your company’s services if it is easy to process claims and simple. In a study, 77% of customers believe the experience with claims directly affects their decision to continue with their insurance company.
With this in mind, insurance firms can prioritize this and collaborate with companies that develop insurance apps to streamline this process. By reducing the hurdles in the claim process, insurance companies can please the client and keep their business and get more customers because of the positive word-of-mouth.
4. Custom insurance apps, as well as portals for customers
In the last three years, the amount of customers who have decided to switch insurance companies due to the inaccessible customer portal has increased by more than 80%. Most insurance companies consider the data seriously. As of 2020, just 4% of European insurance companies had plans to improve their websites’ capabilities.
In fact, with 74% of insurers offering customers the ability to manage their insurance policies using smartphones, insurance apps are the preferred method for customer service. However, if you’re not prepared for the expense of mobile application development, you could build your own web-based portal instead.
5. Omnichannel customer experiences
53% of customers with insurance aged 18-24 indicated they would like to make use of digital channels to contact their insurance companies within the first 80 days.
The audience, particularly those who are younger, not only like digital communications but are looking for consistent, integrated experiences across various media channels.
Through the creation of an omnichannel platform for sales, marketing, along with customer care, insurance companies can assist clients and prospects at each step in their process.
6. Increased use of Cloud Services
According to reputable research, the current trend of increasing growth of the number of those who hold insurance will continue to experience an additional increase. 2022 is expected to be an extremely high-risk year for growth in the number of new policyholders. This trend could be due to the post-pandemic experience of clients who have signed up for insurance policies to deal with unexpected emergencies. It is believed that the industry could reach $500 billion by 2022.
To handle the data explosion in the wake of the expected growth of customers as they become more sophisticated, insurance companies will invest in cloud-based technology to support their operations.
7. Digital Transformation
A study conducted by Deloitte shows that by 2022, 65 percent of the insurance executives will be spending more on the automation of processes using robotics to increase the efficiency of the various processes and also reduce the overall cost and amount of time required to provide services to customers. The traditional methods are no longer effective and cause the process of renewal, claim settlement and underwriting. Expensive and slow. This means that the firms are less productive and competitive on the marketplace.
8. Predictive analytics for insurance
Predictive analysis is a fundamental element of the job of insurance agents. But, without the right technology available, they wouldn’t be able to gain precise information about trends in the behavior of customers.
In the past few years, the analytics landscape has changed dramatically. Today, agents can choose among a range of tools and techniques to carry out accurate analysis. They must stop relying upon manual techniques if they wish to remain competitive and stay current with the latest standards established by InsurTech the top executives.
9. IoT and Telematics
The Internet of Things (IoT) and telematics will transform the insurance industry in the near future.
The IoT allows insurance companies to utilize data from devices that are connected to the internet to boost efficiency. The interconnected devices can exchange data independently, providing more precise predictive analytics, quicker decision-making and seamless automation.
10. Health Wearables
Healthcare wearables’ market is on the rise. Insurance companies are using this technology by connecting their products with it. The devices track data such as daily activity as well as heart rate patterns, sleep patterns and oxygen levels, and temperature and activity levels, among others.
11. Chatbots for insurance
Chatbots are a powerful tool that insurers today should use to satisfy customers’ needs.
They are chat widgets powered by bots integrated on the insurer’s site and messaging app, as well as the customer portal. The insurers set up chatbots for numerous reasons.
They can assist potential customers by giving quotations or answering other questions.
They can improve customer satisfaction by providing 24/7 support.
They can free up agents by dealing with repetitive inquiries from customers. They generate leads through the collection of contacts of their visitors.
Insurance Technology Trends in 2023
Must Read The Importance of Insurance: Top Reasons to Protect Your Future
As an AI language model, I don’t have access to the latest news and trends beyond my cutoff date of knowledge in September 2021. However, based on trends up until that point, here are some possible insurance technology trends for 2023:
- Increased Use of Artificial Intelligence (AI): AI is already being used in various areas of the insurance industry, including claims processing, risk assessment, and fraud detection. In 2023, we can expect to see even more advanced AI systems being developed and implemented.
- Growth of Insurtech Startups: The insurtech industry has been growing rapidly in recent years, with new startups developing innovative technologies to improve insurance processes and customer experiences. This trend is likely to continue in 2023, with more investments being made in insurtech startups.
- Expansion of Internet of Things (IoT) Technology: IoT technology, which involves interconnected devices, sensors, and data analytics, has the potential to transform the insurance industry by providing insurers with more data to make informed decisions. In 2023, we can expect to see more insurance companies adopting IoT technology to improve risk management and claims processing.
- Increasing Adoption of Blockchain: Blockchain technology offers secure and transparent ways of recording and verifying data. In the insurance industry, it has the potential to improve transparency, reduce fraud, and speed up claims processing. We can expect to see more insurance companies adopting blockchain technology in 2023.
- Focus on Personalization: Insurance companies are recognizing the importance of personalization in today’s market. In 2023, we can expect to see more insurance products and services tailored to individual customers, based on their unique needs and preferences.
Overall, the insurance industry is likely to continue to embrace technology in 2023, as companies look for ways to improve efficiency, reduce costs, and enhance customer experiences.
Conclusion
Insurance companies have yet to fully appreciate the potential of AI-powered systems, which means you have the chance to be among the first insurance companies to take advantage of the new trend and reap its advantages. Begin by implementing apps with smaller levels of complexity, and then build a more sophisticated AI-based system step-by-step.
Large companies always plan to become better at their job shortly. The growing trend of insurance technology has proven that insurance companies are likely to invest more in technology by 2023.
