With the rapid evolution of technology, challenges are becoming opportunities. Like any other industry, insurers are seizing these opportunities. To improve internal and external operations, attract more customers, and increase revenue, insurance companies take advantage of AI, cloud computing, Big Data, and other trending technologies. Explore the trending technologies to focus on what truly matters to your customers and build a robust foundation for growth.
Leading insurance companies are now investing in artificial intelligence to build entire new infrastructures on the base of technology and data. AI can be used to pay claims; for example, – the procedure takes only a few seconds. Thanks to AI solutions, insurance providers get a lot of privileged information about their customers.
Insurance is an economic necessity for citizens, but it’s not trusted. Thanks to AI, insurers get a chance to build an alternatively new business model aligning them with their clients. How does a traditional insurer differ from the one who leverages AI? The latter provides insurance services within seconds. Zero paperwork, chatbots, lower costs, fast claims processing are only a few benefits of AI for insurance.
Applying analytics and Big Data solutions for insurance leads to becoming a data-driven organization. The real success of implementing these technologies is that you are taking a step to use your data to the fullest in marketing, claims analytics, or fraud risk analysis. Whatever your case is, analytics will definitely drive your everyday business operations.
Today, insurers start recognizing the fact that they have a lot of data coming from diverse systems, and they need to use that data. Having lots of unstructured data, insurance companies have to apply analytics to extract useful information for building the right strategies.
Today, people are able to buy insurance on their phones, make claims digitally, and get other on-demand insurance services online. Insurers are now using cloud computing to provide their clients with services with fast execution and minimal risk. By implementing cloud-based solutions, companies can provide the following capabilities:
- underwriting in real-time;
- controlling fraudulent submissions in claims processing;
- easy marketing with access to mobile data.
Customers are expecting from retail insurance more – conducting businesses when they want, where they want, using the channels they prefer. That’s what cloud can afford. The ability to access data quickly offers people to settle their claims faster. What used to take weeks is now happing in seconds.
Being a decentral database, Blockchain eliminates the third party. It provides the highest security level that it is possible to acquire nowadays. Here are some ways how Blockchain can disrupt the insurance industry:
- preventing fraud;
- creating policies and processing claims;
- preventing risks;
- creating P2P insurance;
- providing on-demand insurance.
Blockchain can improve claims management as it is known that errors in claims lead frequently to denials. The technology can help in detecting fraudulent claims. It can be used as a way to securely share data about fraud within a P2P network and reduce counterfeiting.
Robotic Process Automation
RPA can come in handy for claims registration and processing, policy administration and servicing, regulatory compliance, etc. Robotic Process Automation reduces the manual workload and repetitive tasks. It is mainly used for automatic data processing, invoicing, information scraping, capturing data from diverse sources. Below are the most popular areas of RPA application:
Claims processing – eliminates sorting, data entry, data validation.
Scaling – increasing automation to meet long-term growth demands.
Regulatory compliance – maintaining accurate data.
Fraud detection – robots check diverse databases for suspicious activity.
All these possibilities driven by new technologies give birth to new players, new ways of running a business, and new models of competition on the insurance market. So, how can insurers embrace the change and gain a competitive edge? Under such conditions, it’s very important to learn fast, test, and learn your lessons.
The most successful business leaders understand that they have to create a strong identity instead of following the crowd. They consider that it’s important to choose the technology that is suitable right for their business model. You should be very clear about the ways of adding new values to your customers. Consulting insurance software development companies can be a good first step towards digital transformation.
Professionals can help you in value chain mapping, differentiating your capabilities and creating a new value system, and building an alternative product portfolio.