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How Technology Will Shape the Direction of the Insurance Industry

Tech can change the way insurers work

20Jul

Technology has given customers the upper hand when it comes to negotiating with insurance companies. Thanks to the internet, customers now know what deals are going on, and how much a company wants to charge for auto insurance. Because the world is becoming more technologically advanced, the need to go into a brick and mortar store is slowly fading away. Thanks to various innovative products and services, consumers now can talk with a representative about problems and concerns at any time online. This helps when a customer wants to have a better understanding of the products and services that they consume, and when handling small details such as signing documents.

The United States had 6,328 insurance companies in 2016 that employed more than 2.5 million people and generated almost $1.1 trillion annually. For the insurance industry to remain relevant to new generations, the business leaders and executives need to have an understanding of crucial trends that foster customer experience. In particular, more than 71% of consumers in the insurance industry tend to undertake some form of digital research before they buy insurance. This makes it imperative for insurance companies to be proactive in categorizing the expectations and needs of customers on an online database.

Utilization of Data

Data will play an increasingly crucial role when targeting and interacting with clients. Technology in the insurance industry will ensure that data is easily available and accessible to the agents. This saves time for agents and ensures more opportunities in the future. Technology also transforms the level of customer experience an agent can have by helping a customer understand information better, and provide a reduction of information gaps. Reducing the amount of mistakes and errors in documents will also help shorten the processing time and make the purchase of insurance smoother.

Because of the growing size of data that is now available to agents, customer experiences have greatly improved. This helps drive success for the insurance industry and proves that the growing use of technology is increasing in value while helping decrease the risks.

Customer Self-service

Self-service is another trend that is slowly introducing itself in the world of insurance. Often we search different companies and brands online, comparing them in price, quality, and past reviews. Having this type of knowledge at our fingertips allows us to make insurance products easier to compare, buy, and understand. This type of comparison will only get better as technology continues to advance.

Having options of filing claims, checking the status of a claim, and referencing personal policy materials online will be appealing to customers. Such technology works to reduce traffic and congestion at the contact centers and makes buying insurance less of a hassle.

Car Sharing

Car sharing, ride sharing, and autonomous vehicles are becoming a norm in many societies, making traditional modes of insurance outdated. Many individuals will move to a car-less household and use ridesharing as their main form of transportation. This type of movement can take a big hit on the insurance companies, so they must prepare for the future change. Auto insurance providers must rethink the role they play in the mobility ecosystem and the relationship that they have with car owners, drivers, and vehicles.

In the future, insurers have to consider the impact of safer cars and new car designs for liability and risk. The future may change the repair and replacement expenses, a move that might make automotive insurance one of the cheapest insurance policies. In addition, new client categories will be created alongside new insurance products. These changes will all be a result of gradual demographic shift, advanced technologies, and a shift in social attitudes.

Modified Approach

Customers have been wanting a simpler way to compare and buy insurance without the drag of going to different companies' storefronts. Technology is not only helping to make car insurance more affordable but also quicker and hassle-free. The advancement of self-driving cars leads to safer roads and less need for traditional liability insurance, helping drive down the costs of car insurance.

Innovative technologies combined with the considerate aspect of human contact leads the insurance industry with no choice but to move towards a more technology-based environment. As progressive firms start utilizing data and technology in serving customers, the industry’s overall reputation will change; offering new opportunities and benefits. 

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