The insurance industry is constantly changing. While the domestic industry encompasses a wide range of industries, each business, from car insurance to health insurance, will surely benefit from the emerging trends in insurance technology. Below are some of the insurance technology trends that are making waves right now:
Insurance technology trends regarding machine learning and artificial intelligence. These two technologies have been transforming the insurance industry for many years. One example is claims processing where actuarial data is fed into a machine which makes decisions about claim denials based on its internal software algorithm. On the other hand, artificial intelligence will allow actuarial personnel to make more intelligent choices about patient care which will result in fewer errors while flagging too many claims.
Automated billing is one of the insurance technology trends which has been developing steadily over the last few decades. The advances made in this field have improved billing in such a way that customers no longer have to fill out paper forms or worry about entering in too much information. Another advancement is the introduction of online pay applications. This technology allows claims to be submitted electronically thus reducing the time spent on paper forms. Another trend in this field is insurance claims management and telematics. These are the trends which will allow companies to handle claims efficiently and save on cost while also increasing customer satisfaction.
Insurance technology trends regarding telematics and real-world examples. We’ve all heard about advanced imaging systems where images of the body are downloaded so doctors can analyze the body’s health in real-time through the web cam. Also, the trend is to map the body so doctors can see at a glance what part of the body needs treatment. Real-world examples include car mapping where the car’s navigation system projects maps of the driver’s car at all times and alerts the car owner when he or she is entering into unsafe areas or when something looks suspicious. This is just one example of advanced telematics technology. Another example is the ability to send text message alerts when the temperature inside a vehicle spikes or drops.
One of the insurance technology trends in life insurance is healthy habits. It is believed that habits can account for 60% of the medical insurance industry’s profits. That is quite an amazing statistic and it points to the importance of practicing healthy habits in order to keep your body healthy. For example, smoking and drinking increase the risks of getting cardiovascular diseases, such as heart attacks. So a smoker should start considering ways to quit smoking as soon as possible.
One of the insurance technology trends in life insurance is the use of Covid-19. The idea behind this is to give more information on the health of a person. According to the studies, the younger a person is when he or she gets diagnosed with a chronic disease, the better his or her chance of living for a few more years. Hence, it is wise to monitor the habits of young individuals more closely and if any of them are found to have a habit which may put their life at risk, they should be aware of it. One good example of this is when a young person smokes cigarettes for the first time, he or she should learn how to quit.
The most interesting trend that you will come across in these insurance technology trends is the combination of big data and iot technologies. The big data will provide information on how people live their lives in real time. This will allow the insurers to make better decisions on risk management by combining all the available information and actuarial tables.
On the other hand, insurance industry will also come up with telematics applications. This means that the insurer will use the data available on the movements of the customer’s vehicle to determine the probability of an accident based on the customer’s behavior. This application will not only help the insurer save money, it will also increase customer satisfaction and loyalty. In short, the insurance industry will have an easier time finding solutions to complex risks by combining all the data available in the market. It is expected that the telematics applications developed by the different players in the market will be made accessible to the customers using smartphones in the next few years.