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5 Insurtech Trends Reshaping the Insurance Industry

Last updated: 05 Dec, 2019 By | 6 Minutes Read

The term revolution is most probably used by various tech writers these days, but still, it is difficult to understand the change in the insurance and reinsurance industry. This sector is going through the revolutionary change because many insurance companies have taken the initiative to leave behind the obsolete way of working and are adapting the innovation in technology at the global level.

You just simply need to understand that “ Technology and innovation are key factors in improving the economy”. Near about 63% of the Insurance companies have adapted the Insurtech for enhancing their business efficiency.

5 Latest Insurtech Trends Reshaping Insurance Industry Aspects

1. Emergence of Artificial Intelligence

AI has become popular among the industries globally. AI helps the insurance companies to develop their analytical protocols, and advance their data gathering technique. Around 79% of insurance executives agree that AI will revolutionize the way of gathering information from customers as per their requirement and interact with them.

One of the Companies in Japan known as Fokuku Mutual Life Insurance, replaced its 34 workers with AI because with one easy click you can gather the complex data easily.

2. Digital Transformation

Insurance Industry is the most competitive industry and has to face several challenges. The very first challenge for Insurance Companies is to meet customer expectations and behaviour. Customers nowadays are addicted to digitization and the new generation is more attracted to these technological changes.

So to keep up with the customers and survive in this competitive market, Insurance companies need to understand and bring digital transformation in their workflow. Because it’s no longer about beating the small, but the fast beating the slow…!!!

For example, many applications have been introduced for the customers such as Liberty Mutual’s Home Gallery App, GEICO App, Progressive Art App, MetLife Infinity App and many more which have made the process easier for consumers rather than entertaining agents at home.

3. Design for Customers and Inspire their Behavior 

Consumer behavior is unpredictable, but yes, companies can have some idea on the basis of gathering information from customers. Around 80%  of the insurance organizations agree that the customers are their first priority and they must accordingly design various plans and policies for the customers to gain profits and customer loyalty, which is always attractive.

Human behavior flows from three main sources that are Desire, Emotion, and Knowledge, so the Insurance companies should be capable of understanding these complexities and plan various strategies.  Implementing these strategies with the help of technologies available in the market can enhance the reputation of the business.

4.Cyber-Security and Risk

Cybercrime is becoming the biggest problem among every industry. And for Insurance companies, it’s a new challenge stimulated. cybercrime is not only affecting the consumers, but also the insurance firms.

In 2015, a major data break off occurred at one Healthcare insurer that comprised the private records of more than 78 million customers.

In the same year, the  Insurance Information Institute stated that protection against cybercrime will be the new area of growth in the coming years. And the software companies such as McAfee and CSIS reduced the threat of data loss to an extent. We can say this is also one reason;  Insurance companies should leave the obsolete work style and move with the time.

5. Hire Experts and Set New Standards

 Subcontracting the non-core activities has become the common aspect in the Insurance sector. According to the survey by Accenture, around 76% insurers agree that to cut down the competitive edge in the market, outsourcing insurance back office tasks is a viable solution. This has become the cost-effective factor amongst the Insurance Companies, especially in the developed countries like US, Canada, Australia and many more, it has set a new standard across the globe.

But do you know the reality that how many Insurance companies have actually adopted these trends? When PwC analyzed how many companies actually adopted Insurtech in their corporate strategies, only 43% has brought the technological changes within their organization.

Yet there a lot more companies who need to embrace the change in the organization for the well being of their business.

You may also consider getting help from Cogneesol to improve operational efficiency and get the advantage of the latest software applications commonly used in the insurance industry. We are a leading insurance BPO company delivering quality services since 2008 across the globe. To learn more about us, call us at +1 646-688-2821 or email at info@cogneesol.com.

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