Evaluating digital technologies for your insurance company has never been more overwhelming.
There’s an abundance of choices, a hodgepodge of new terminology, and a tidal wave of pressure to keep pace with the competition. Today, we’re going to attempt to simplify what perhaps cannot be simplified.
Here are the main digital transformation technology trends transforming the insurance industry, and an overview of what you really need to care about.
7 Top Technology Trends
1. Fully-Scaled AI
Many insurance carriers have worked with artificial intelligence (AI) to some degree. Yet, few have taken the time or carved out the budget to scale it across their enterprise.
Moving forward, we expect to see AI technology become more prevalent in this industry. Carriers are able to implement it into their core processes. They use those insights to drive predictive analytics and more customized client care.
Every element, from underwriting and claims to distribution and service will become more intelligent and informed. Not only will points of connection become more personal, but productivity will also spike.
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2. Low-Code/No-Code Development
Data security is top of mind for carriers, which makes traditional IT development tools tricky to navigate. This should change with the advent of low-code/no-code IT.
Increasingly, vendors offer tools that don’t require a great degree of in-house coding. This means carriers can allow vendors to do most of the work. The tools are built to be secure and compliant, which also makes it easier for carriers to ensure data protection and meet industry standards.
In terms of security, there are new tools that allow carriers to make better and more secure use of customer data. One of those is blockchain.
While still associated mostly with the crypto sector, blockchain is becoming more widely adopted. As this happens, carriers can manage customer data safely and consistently. It also makes it easier for them to manage customer identities.
3. The Onset of Telematics
In years past, insurance companies were required to trust users when it came to usage metrics. They would take their word when they reported on critical checkpoints, such as driver safety scorecards.
Now, insurers deploy telematics, including GPS technology and onboard diagnostic tools. They do so to get a more accurate reading and to reduce their reliance on user-generated data. This ensures the information they’re working with is clean, relevant, and up to date.
When this tech is combined with other emerging tools, such as drone technology, the benefits are even greater. Insurers can use drones to generate real-time datasets so they can customize their coverage and deliver better policyholder experiences. As 5G connectivity continues to expand, these resources will become even more accessible.
4. A Shift to the Cloud
As cloud technology continues to mature, we expect insurers to shift their core systems there, which will improve their customer service levels. It also allows them to harness the tech power necessary to analyze the data sets they handle.
When this happens, on-premises legacy technologies become fewer. Instead, carriers use the cloud as a central hub, connecting customers, distributors, and providers. Companies with a strong reliance on on-premises systems should initiate the shift to stay competitive.
5. A Focus on Innovation
With so many new insurance technologies at their fingertips, carriers are shifting their mindsets. These companies have traditionally been more conservative with new tools; however, they can no longer afford to be. They’re now facing competition from startups, tech giants, and cloud-native insurers, and they must keep pace to stay relevant.
Companies are focusing their efforts less on traditional issues and more on cultivating a culture of creativity. While problems such as policy sales and inefficient claims processing once defined this sector, business leaders are looking at the future with a wider lens.
Expect to see more carriers investing in tools to support digital implementations and a greater emphasis on the organizational change management (OCM) efforts that such large projects require.
6. Modular IT Development
In an attempt to modernize, many insurance companies invested in heavily customized IT systems years ago. Now, those systems are quickly aging.
Tearing them all out would be expensive and time-consuming. Thankfully, that isn’t the only option. Carriers now take a modular approach to modernization and updating based on their most pressing need.
For instance, if most of their workforce went remote during the pandemic, they may need an automated platform to simplify and streamline back-office work. In this case, a solution such as one of several ERP systems could be ideal.
7. Improved Process Automation
Robotic process automation has been a popular technology among carriers for years. It allows companies to automate their current processes. In the months ahead, we expect the focus on automation to strengthen.
Take tools like industrial IoT, for instance. Carriers use it to monitor equipment in real-time. This allows them to perform predictive maintenance to prevent issues before a claim occurs.
In physical damage areas, the standout tech is digital twins, along with 3D and 4D printing. Combined, these tools make the claims experience better informed, faster, easier, and more efficient.
Leverage These Technology Trends Transforming the Insurance Industry
The future of insurance is tech-savvy. While there are many technology trends transforming the insurance industry, there are more on the horizon. The key is sorting through the options and understanding which ones work best for you.
If your insurance company is ready to embrace digital transformation, we’re ready to help. Our enterprise software consultants can help you find the perfect solution for your needs, and we’ll guide you through every stage of your ERP system implementation. Contact us below today to get started.