Do you know that technology evolves exponentially? Operational abilities of new systems keep getting better and faster, thus making a tremendous impact on almost every industry out there.
Insurance is by no means an exception here as now you can make smarter and more accurate decisions based on tech-induced insights. Take China for example as 60% of local life insurers report a larger profit, mostly due to the overwhelming influence of the state of the art tools and platforms.
But how exactly is technology changing insurance for the better? If you are interested in learning it, keep reading to see eight popular use-cases.
- Powerful data analytics
People leave tons of digital traces online, but insurance agents cannot interpret it manually. This is where data science steps in to accumulate and analyze massive information resources. Modern data analytics tools don’t take more than a few seconds to digest and interpret complex datasets, so you can bring data-driven decisions.
According to the report, the implementation of big data has resulted in 30% better access to insurance services, 40-70% cost savings, and 60% higher fraud detection rates. Client-related insights are at the root of life insurance, which is exactly why data science plays such a major role today.
- Chatbots for customer service
The life insurance industry relies heavily on chatbots, also known as robo-advisors. What is a chatbot? It is simply a computer program developed with the purpose of communicating with human users. You can see chatbots almost everywhere these days – from the best essay writing service to eCommerce websites.
The concept is extremely important for insurance companies because it serves as a digital sales agent that guides potential clients through the website quickly and smoothly. Besides that, website visitors can enjoy the highest level of personalization since chatbots store client-related information and continue conversations without repeating any of the previous moves of questions.
- Health analyses with wearables
The easiest way for insurance companies to obtain information and understand life expectancies is simply to ask consumers to wear special devices. It’s the latest data-accumulation technique that eliminates misunderstandings and simplifies decision-making processes.
For instance, a simple tool such as the smartwatch is able to monitor a person’s health condition and keep the insurance company informed about heart rates, BMI, blood pressure, and lots of other parameters. A client doesn’t have to accept wearing a special gadget, but he/she can earn a unique discount for agreeing.
- Comparison engines
Customers in need of life insurance have a long way to go, but the search for a perfect offer is much shorter if they take advantage of the so-called comparison engines. What can you do with it?
The idea is simple – you can use an online platform to compare different policies rather than searching for the right agency one by one.
- Simplification of underwriting
Technology is also making a substantial impact on underwriting.
Jake Gardner, an essay writer in charge of finance and business, explains that standard underwriting techniques are fairly reliable, but they take too much time and budget: “In such circumstances, it’s not surprising to see that insurance companies started using advanced data management platforms to simplify the process of underwriting.”
A study even reveals that “new data sources, platforms to store and analyze data, and fast innovative technologies to mine the data or simply automate existing processes have the potential to reduce the length and invasiveness of risk assessment, improve risk selection, and refine policy pricing.”
- Fraud detection
Fraud detection is yet another way technology is changing insurance for the better. New systems have the power to monitor enormous databases, which makes them capable of identifying and mitigating risks.
Advanced AI-based platforms keep an eye on various data sources, including public health records, social network insights, insurance websites, financial reports, and internal data sources. That way, it’s easier to pinpoint fraudulent attempts and minimize risks.
- Mobile-powered insurance
The latest reports show that there are over 3.5 billion smartphone users in the world today, which grants insurance companies access to almost half of the global population. What can they do with it?
First of all, insurance systems can capture previous user-related information. Secondly, mobile marketing focuses on individual clients and hence boosts user engagement. And thirdly, it’s easy to send tailored messages to remind consumers of the latest updates or payments.
- Technology reduces costs
After everything you’ve seen so far, it’s easy to figure out that technology drastically reduces the operational costs of the insurance industry. Insurance companies make decisions based on facts instead of intuition or experience, so they can minimize error rates. Besides that, systems like big data platforms and chatbots replace entire armies of human agents, thus leading to a drastic cost-reduction in the long run.
The Bottom Line
Life insurance has traditionally been a numbers game where decisions are made based on all sorts of medical insights and statistical reports. However, technology changed the insurance landscape and made it better, faster, and more accurate.
In this article, we showed you eight ways technology is changing insurance for the better. Which solution do you believe to be the most important here?
About the Author:
Justin is a marketing specialist and essay writer from Leicester, UK. When not working and rooting for Leicester FC, he likes to discuss new trends in digital marketing and share his own ideas with readers on different blogs and forums. Currently, he is working as a content marketer.