New Technology in Insurance Industry

Topics: Agent Resources

Today’s fast-paced technological changes impact all aspects of our lives. If an industry is not staying up-to-date on the changes, they could be left behind. In a recent article from Carrier Management, Kiren Kumar, assistant managing director of Singapore Economic Development Board, says “entrepreneurs across the board must be prepared to continually innovate, rethink, pivot, and change direction as need be. You must match your product or service to the current realities of the marketplace.”

The insurance industry is often described as slow-moving and “behind-the-times.” However, this description no longer rings true. With insurtech companies and new technology being tested and used, the insurance industry is on the forefront of innovations. Today’s carriers are adapting and innovating their businesses to keep up with, and in some cases stay ahead of, the rapidly changing world to ensure their continued success.

Innovations in the Insurance Industry

Big Data. Blockchain. Internet of Things. Artificial Intelligence.

These are all technology buzzwords that are impacting and moving the insurance industry forward on a daily basis.The insurance industry saw innovations in real-time data capabilities allowing for more streamlined and faster payouts. Insurtech start-ups are transforming the insurance industry by incorporating new technology, focusing on mobile and using social media to suit the needs of millennials and younger generations.

Carriers Staying Up-to-Date on the Changes

New business models based on insurtech innovations such as automation, connected devices, real-time data and AI are driving new policies and procedures for policy creation, underwriting and claims management at insurance carriers. Carriers are investing more in developing and utilizing new technologies every day, including the few mentioned below:
  • Augmented Reality. Augmented reality uses technology to superimpose sounds, images and text to add to the reality that we already see, rather than replace them. For the insurance industry, augmented reality would allow insurers to enhance reality with graphics and other interactive tools to improve customer experience and efficiency.
  • Real-time Data. With the growth of quantum computing, utilizing real-time data is the new reality. Quantum computers can process data millions of times faster than current computers. It will allow carriers to calculate risks in real time and ultimately shortening payout times.
  • Artificial Intelligence (AI). Advances in AI will continue to improve the customer experience from purchasing insurance to submitting claims. Chatbots are one example of AI that are being integrated into a business’s website. Chatbot technology, think Google Home or Amazon’s Alexa, interprets a request and then either answers the question directly or points the user to the correct resource.
  •  Mobile Applications. We are attached to our mobile devices and are using applications to manage everything from auto warranties to absence or leave management programs. Insurtech companies are developing mobile apps that let the insured report and follow up on their claims quickly and efficiently.
  • Blockchain. Blockchain is a distributed, decentralized public ledger that is the record-keeping technology behind bitcoin. For the insurance industry, blockchain offers many perks including efficiency, faster processing of claims, fraud detection and cost-savings due to process automation.

Buy-in and the Future

Innovations in technology continue to be applied in all aspects of the insurance industry. For example, mobile applications that allow policyholders to report and follow claims through the claims process. An  insurance trends report found carriers are moving core business capabilities to “the cloud” for faster processing, flexibility and scalability.

While the carriers are keeping up with the changing technology, innovation can be a bit of a challenge for those insurance agents that aren’t used to using digital solutions and products in their everyday business lives. That’s why partnering with an innovative insurance carrier is so important. Choosing the right carrier can mean the difference in scraping by and flourishing in an ever-expanding sales market. As companies change their scope to an increasingly digital venue, the insurance industry must meet the demands these new challenges present. Additionally, agents will need products and solutions that can meet those complex needs.

AmTrust Offers Small Business Insurance Solutions

As an AmTrust appointed agent, you’ll be working with an organization that focuses on generating steady, stable and positive growth. Success is our policy, for both you and your customer. Contact us to learn more about the AmTrust carrier appointment process.

This material is for informational purposes only and is not legal or business advice. Neither AmTrust Financial Services, Inc. nor any of its subsidiaries or affiliates represents or warrants that the information contained herein is appropriate or suitable for any specific business or legal purpose. Readers seeking resolution of specific questions should consult their business and/or legal advisors. Coverages may vary by location. Contact your local RSM for more information.

Time Zones