How the Top Tech Trends are Transforming Insurance?

Technology is evolving at a blistering pace and impacting each sector more than ever before. The same applies to the insurance field, with a handful of tech trends showing a massive impact on the insurance sector.  

Tech Trends That are Transforming the Insurance Sector

Various technology trends have altered the course of this sector, with the major ones being discussed below – 

• Cloud Tech: The first entry in the list is cloud technology, which has helped the insurance sector widen its reach considerably. As per reports, around 79% of the large insurers and 70% of the mid-size insurers across the globe have plans for offering services over the cloud, and around 33% of them have also taken the first step towards cloud insurance solutions.  

In the future, one can expect the whole of the insurance sector to offer services over the cloud - one can expect the aid of cloud technology right from customer acquisition to other steps of insurance. 

• AI, ML, and Data Analytics: These three forces, considered the three pillars of modern-day insurance, are closely related and share a common foundation. Over the years, AI, ML, and Data Analytics have become an indispensable part of the insurance sector. 

With COVID-19 leading to a loss of over $55 billion for the insurance industry worldwide, insurance companies have become more vigilant than before and initiated the incorporation of such tech. 

As per a recent survey, over 76% of company executives have started incorporating analytics as a part of their customer service strategy. Similarly, 40% of Chief Insurance Officers (CIOs) plan to use AI and ML in their pilot projects for customer service. 

One can already catch a glimpse of this, with most of the top insurers having installed a chatbot on their website to address customer queries and grievances. This usage is expected to increase in the future in accordance with the incorporation of automation in this sector. 

• Quick (5G) Connectivity Bringing in Major Innovation: Data is being shared in real-time, all thanks to the usage of 5G connectivity services. This has also helped in bringing in telematics which has helped in the evolution of the core insurance product. This technology is primarily utilised in auto insurance - in the present-day scenario, telematics-based insurance policies constitute about 2-3% of all motor insurance policies. However, with technological enhancements, this figure is expected to grow in motor and other insurance segments as well. 

Bio-revolution and next-generation programming are other tech trends that are changing the insurance sector. These and the aforementioned trends have made a major mark on the insurance sector and have altered the course of healthcare facilities as well. With such tech transforming the insurance sector and helping it evolve continuously, one can certainly anticipate enhanced accessibility and efficiency of insurance.

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