9 Innovative Insurance Technology Trends in 2022

Innovative Insurance Technology Trends

Introduction

Insurers now have unprecedented access to a wealth of information. More data means better underwriting choices, but it also means many organizations are unable to keep up with the volume and diversity of data that is accessible to them, as well as the pace at which that information is delivered.

These insurance tech trends for 2022 and beyond are based on our projections for the upcoming year. Many times, these indicate the continuation or acceleration of current insurance technology developments. Across all businesses, facts about big data and cloud-native analytics are seen most prevalent in the insurance industry.

Key Tech Challenges in the Insurance Industry

Legacy Systems

Unless your firm is new, you likely have software – and processes – in place to manage insurance policies. These systems are called ‘legacy’ if they are both obsolete and vital to essential business processes.

It is challenging for insurance businesses to digitally convert since old systems are costly to maintain and replace.

IT Skills Deficit

Adopting new technology demands IT knowledge that insurance companies may not have. According to a recent survey, 81% of insurance executives are concerned about talent availability.

It’s not only about a candidate’s computer abilities; an employee must be the right fit to be genuinely productive. Unfortunately, finding a candidate with the proper mix of technical, soft, and experienced capabilities may be challenging – and competitive.

How Technology Is Changing The Insurance Industry?

Core technology trends have emerged in the last few years and affect nearly every industry. Products and services are being redesigned due to numerous technological advances and shifts.

A new reality requires incumbents to change their operating models, products, and core processes. Executives must be aware of the impact of these technologies and ensure that their organizations are positioned to unlock their potential. Therefore, business leaders will have to let go of long-held assumptions and business models to find innovative ways to produce and distribute new products.

Key Insurance Industry Trends

Adopting new ways of doing things is one of the biggest challenges in insurance digital transformation. That has changed since the pandemic. The willingness to change does not imply that it will be simple. Insurers will face Nine challenges:

Artificial Intelligence

AI is quickly evolving, with AI-enabled products becoming ubiquitous.

Consumers want individualized experiences, especially when shopping. Insurers may use AI to provide these distinctive experiences, fulfilling current customer expectations. The objective is to employ AI to generate tailored experiences based on an individual’s behavior and habits.

AI can also speed up claims processing and modify the underwriting process. AI also speeds up insurers’ data access and eliminating human error can lead to speedier reporting.

Machine Learning

Insurance developments in 2022 will feature overlapping technologies to improve accuracy. Machine learning can not only enhance but also automate claims processing. Files can be evaluated faster and more accurately when digital and available through the cloud. This automated examination can affect insurance administration and risk assessment, and claims.

In the era of machine learning, you don’t want to be left behind. Machine learning is poised to become a standard tool in the insurance industry.

Internet of Things

Tradition has it that clients dislike the standard insurance claim process. It’s disappointing when insurance claims take weeks or months to process. Modern consumers want insurance companies to integrate technology into their daily lives. Data-driven judgments are made possible via IoT solutions. As a result, insurers may process claims more quickly by eliminating paperwork. It saves users time by eliminating the need to fill out endless forms. Wireless biometric and environmental sensors simplify assessing risk and adapting policy.

Chatbots

High-quality digital assistants that employ conversational AI-based chatbots can substantially cut costs and turnaround time for insurance. However, customers are wary of using voice assistants to do transactions. And they’ll wait in line to communicate with people. A chatbot must know when to hand over to a person to serve a consumer effectively.

Blockchain Data

Smart contracts and blockchain technology are being used by many carriers to improve the underwriting process. Because of the new insurance tech trends, underwriting has been enhanced because insurers can examine accurate information on previous insurance policies and claims and provide more precise pricing and selections for their insurance products.

Insurers stand to gain a lot from blockchain and smart contracts, but many struggles to make the switch. Adoption, on the other hand, will continue to rise.

Drones

By the end of 2022, we expect robots and drone technologies to be more prevalent in several businesses, including insurance. According to the FAA estimate, 2.85 million drones will be in the skies this year, 450,000 being commercial. According to the survey, insurance companies accounted for 17% of all drone applications in 2018.

Many insurers are already using drones and robots to increase risk management and claim efficiency. Drones collect data about structures that would typically need a team of surveyors’. For example, Deloitte says better view, a property, and casualty insurance company, deployed drones for almost 6,000 roof assessments in two years.

Cloud Computing

Cloud Computing has increased corporate growth and improved customer experience for insurers. Globally, insurers are constantly under pressure to innovate and adapt to market disruption. Cloud computing solutions for the insurance sector can help insurers improve IT agility and speed up project implementation. It also allows them to test and deploy new technology swiftly. As a result, they can now supply services faster.

Telematics

Telematics will continue to influence auto policy. Think of telematics as vehicle insurance’s equivalent of wearable tech. Data from your car, such as your speed, location, accidents, and more, may now be watched and analyzed by the data analytics software for insurance companies to assist in calculating your policy premium. Take progressive’s snapshot, for example.

Telematics has several advantages for both insurers and clients: 

  • Promotes safe driving
  • Lowers insurance claims expenses
  • Transforms reactive to proactive carrier-customer interactions

Automated Renewal

Enrollment in employee benefits might be slowed by a high volume of quotations that require underwriter evaluation. In addition, administrative chores like rekeying data or manually running an analysis take up 30-40% of an underwriter’s time.

Machine learning can automatically shorten workloads. For example, carriers may train machine-learning algorithms to help sales and underwriting managers distribute quotations more efficiently.

Automated renewal applications can reduce carrier involvement in stock quote requests by automatically queuing references for manual inspection and creating policy renewal packages.

Conclusion

With today’s customers being more tech-savvy and omnichannel focused, insurance businesses must innovate to stay competitive. These insurance technology trends in 2022 rely heavily on technology, and insurers might invest in low-code platforms to simplify operations and better serve policyholders.

To learn more about how VLink can help you with customized digital solutions, and experienced tech talent & development teams, fill in the ‘Get in Touch’ form below.

April 28, 2022


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