How Technology Is Fundamentally Changing Insurance
Contemporary consumers are digital experts and expect to find the cheapest insurance rates out there at a click of a mouse button. Insurers fully understand the lay of the land and, as such, have invested millions of dollars in new applications and platforms that are set to change the insurance industry for good. While the changes that have emerged in recent years have reduced the paperwork and effort associated with finding the best insurance rates, they are also saving consumers thousands of dollars.
Insurance in the Machine Learning Era
The insurance industry is underpinned by repetition. As such, it represents the ideal domain in which to implement artificial intelligence (AI) based algorithms that make the most of the mass data available. The implementation of AI mechanisms within the insurance industry will deliver multiple benefits. They will reduce the amount of time it takes consumers to find the best deals, it will also enable insurers to use consumer’s historical data to develop custom-built applications that are aligned with their driving habits. The less tasks that insurers are required to delegate to brokers, the higher the cost savings that can be passed on to customers.
The evolution of technology in the insurance industry is by no means going to put the insurance brokers out of work. On the contrary, it is helping to fundamentally transform the role of brokers and enhance their ability to meet consumers’ needs. As opposed to simply putting forward a list of pricing options, they can now offer advice and assistance that is based on data and statistics and, as such, add value to the consumer.
It is for this reason that so many insurance companies have implemented chatbots into their web-based customer service offerings. The more insights that a broker has in terms of a consumer’s requirements, the more efficiently they can meet these needs.
More Security in the High-tech Era
According to figures released by the FBI, non-health insurance is responsible for fraud offences that reach a massive $40 billion per year. It has become common practice for organizations to use AI to identify any unexpected patterns in the data that may be associated with illegitimate claims and, through doing so, save customers millions of dollars over a long-term basis. Furthermore, it will also increase the speed with which legitimate claims are processed.
Today, technology isn’t just saving people money and time, it is also increasing safety. One prime example of how technology can save lives is the teenSMART driving program. This driver-simulation program employs computer-simulated technology to help new and learner drivers to learn how to navigate the uncertainties of real-life driving situations. The outcomes of these programs are very promising; those who complete it have 30 percent fewer collisions than those who do and, as such, have access to lower insurance premiums.
As autonomous vehicles become increasingly common on the roads, it is anticipated that the role of AI within insurance will continue to evolve. Many OEMs have already taken this into consideration and are offering insurance plans as an integral element of vehicle purchases. If autonomous vehicles deliver on their promise and reduce accidents, premiums will reach an all-time low.
As is the case with so many other industries, the massive development of technology is fundamentally modifying how organizations interact with customers. Thankfully, the changes thus far appear to be for the better.
