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5Min Read | Thu, 15 Jun 2023
The latest insurance industry trends in the digital space focus on building an online presence of the insurer, broadening their horizon in terms of the products they offer and the customers they can reach. The main pain points are understanding the latest technologies and employing them efficiently to keep pace with the ever-evolving sector. This blog takes you through the top three trends in the insurance industry in 2023.
The insurance industry is evolving faster than ever, and technology is one of the biggest drivers of change. So much so that it is now becoming known as the insurtech industry. Insurance technology companies are getting increasingly competitive and developing innovations to improve their processes and customer service.
Especially after the pandemic, there has been a significant increase in the number of companies that have adopted digitization.
This not only helps in improving the profitability and scalability of the company but also enables them to offer personalized solutions to customers.
According to a report by PwC, customers are likely to pay 30% more for products tailored and designed to suit their needs.
To make the most of the latest tech, let us delve deep into the latest insurance industry trends that will be all the rage in 2023.
These are the top three technology trends in the insurance industry that have gained immense importance and will continue to do so in 2023:
Robotic Press Automation (RPA) is a technology that uses bots to do routine backend tasks. This has transformed the way insurance companies operate since it gives the employees more time to focus on critical and complex tasks, as they are freed from time-consuming, mundane ones.
This allows insurance technology companies to improve their processes and build a competitive advantage by providing quick and efficient services and enhancing customer experience.
With RPA technology, you can easily employ bots to perform tasks like copy-pasting between different applications, gathering data from emails, and creating reports by calculating data.
Apart from this, the RPA bots can help streamline the entire high-volume claims process. The standard claims can also be settled in as little as a few minutes.
The benefits of RPA technology accrue in the form of faster processing of insurance claims, higher accuracy of data and reduced human error, and greater opportunities for creating personalized product offers and recommendations for customers.
Predictive analysis is used to analyze collected data to identify patterns that may occur in the future as well. In insurance technology companies, predictive analytics has been a vital tool.
According to Willis Tower Watson, over two-thirds of insurers give credit to predictive analysis for reducing underwriting expenses and issues. 60% of insurers also say that it has helped increase profitability and sales.
One thing that predictive analytics has been used for in the insurance industry is risk selection and pricing. With improving technology and better data insights available, this use case of predictive analysis will likely improve in 2023.
Predictive analytics also helps in managing risk. Insurance companies use it to identify customers likely to cancel their policies or lower their coverage. The insurer can give special attention to these clients and offer them tailored advice and an improved experience. This will put them ahead of the competition.
Another major risk in the insurance industry is the risk of fraud. Insurers use predictive analytics and big data to catch discrepancies and mismatches. This helps avoid potential fraud or take quick corrective actions to minimize damage. Since it is based on machine learning and artificial intelligence, it removes the risk of human error and the unwanted influence of emotions while detecting fraud.
The days of just physical insurance offices with piling paperwork in every corner are long gone. Insurance companies are now focusing on building an omnichannel presence.
This includes being present in digital spaces, such as social media, email, SMS, and mobile apps, along with building a company website.
Having a mobile app goes a long way. It becomes the easiest way to personalize offers to customers. It is a place where customers can build their profile, access all information from one place, and connect directly with the insurer seamlessly.
In fact, based on a McKinsey report, most Gen Z and Millennials prefer using mobile apps to connect with brokers instead of having physical interactions with them.
With these generations forming the majority of the population in the coming years, catering to this growing demand becomes a must for insurance technology companies to sustain.
Not just this, but it is equally important to enhance physical offices, making the processes more efficient and orderly. Insurance companies also employ agents who visit clients for a more personalized experience. The important thing for insurance companies here is to see how they can integrate the latest technologies in their office spaces to build better processes.
For instance, companies can use cloud technology to ensure increased reliability and scalability. Additionally, this enables teams to work from different locations and still have access to all information.
Insurance companies can also automate their claim process, making it faster. This way, more claims get settled, customers are highly satisfied, and business opportunities and growth can be tapped efficiently.
Using multiple channels to reach customers helps insurance companies target tech-savvy as well as non-tech-savvy clients.
A few things companies should keep in mind while building various channels include using proper communication strategies and having a user-friendly interface for mobile apps. Moreover, appropriate KPIs should be established to assess performance.
These are the top three technology insurance trends in 2023.
The best way to make the most of these tech innovations is to employ an insurance management system. One such software is InsAgy, which you can seamlessly get via Zoftware. It helps you handle your insurance agency and make your business thrive. Compare more software options and get the guidance of our experts today!
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