Technology Solutions Insurance Companies Need in 2019

The insurance industry is ripe for disruption and emerging technology is pushing it to the cusp of major changes.

For years, customers have begrudgingly accepted that finding the right policies, making claims and navigating the entire system is inherently frustrating. But all that is changing.

Customer expectations are higher than ever before, and with more options becoming available they aren’t afraid to take their money elsewhere. This competition has put pressure on insurance companies to better understand and utilize emerging technologies to meet customer demands.

Looking forward to 2019, here are some of the major technologies that insurance companies will need in order to compete in an industry that is in the process of innovation and reinvention.

Big Data

Big data and the insurance industry are a match made in heaven.

Insurance companies rely on data collection to assess risks, create policy premiums, detect fraud, gain insight into customer behaviors, improve the customer experience and much more.

In the past, there were limitations on both how much information could be analyzed at once and how quickly that could be done.

Today, what once took months can be done in a matter of seconds, which has effectively sharpened companies’ abilities to perform all of the data-based tasks.

Big data and the insurance industry are a match made in heaven Click To Tweet

For example, big data and strategic learning technologies can scan through past claims, find any potential links between repair shops and other social networks to find claim discrepancies and identify cases of fraud.

Sorting through all this information manually would take months, and it is unlikely that any links would even make a blip on their radar.

Haven Life, an online life insurance provider, is already using the power of big data to improve the customer experience and take the hassle out of choosing a policy.

Their tools simplify the process of choosing an insurance policy by synthesizing a broad scope of customer data, the results of which help users quickly make complex policy decisions.

In 2019, insurance companies need to take advantage of the power of big data to streamline their current tasks, look for ways to reduce costs and stay ahead of their competitors.

IoT

Insurance companies can use IoT to promote safer habits and provide customized policies to customers based on their routines and practices.

Making their customers more aware of current risk levels with wearables and smartphone applications allows companies to offer helpful suggestions and financial incentives to those who make positive changes or maintain more cautious or healthy routines.

Progressive Insurance was one of the first companies to employ this strategy and offer a safe driving discount.

Customers can opt into the Snapshot program and either use the app or a plug-in device to record their driving behavior over a period of six months.

Insurance companies can use IoT to promote safer habits and provide customized policies Click To Tweet

Based on their habits, drivers may be eligible for lower rates and they will receive feedback about how to make improvements in order to enjoy additional savings.

For example, a safe driver who doesn’t commute during rush hours and leaves in the morning after a full 8 hours of sleep could be eligible for lower car insurance rates.

Corporations are also using IoT devices to monitor employee behavior out of the office and work toward reducing insurance premiums.

For example, Beam Digital provides employees with a smart toothbrush that monitors their brushing habits. This information is also used to choose the right dental insurance plan and reduce overall costs.

John Hancock also joined this trend by issuing free Fitbits to customers so that they could begin to track their own health and make better decisions. The company also offered financial rewards to those who made improvements, thus reducing the likelihood that they would need to make a claim.

Cyber Security

As technology continues to advance and increasingly more information is shared online, all industries are having to pay closer attention to cybersecurity.

Insurance companies have access to tons of sensitive customer information and are responsible for protecting that information from being shared without permission or stolen.

Advances in cybersecurity are allowing insurance companies to safely digitize their businesses and provide customers with secure online tools.

Advances in cybersecurity are allowing insurance companies to safely digitize their businesses Click To Tweet

In recent years, consumers have seen the banking industry improve security with advances like the EMV chip technology for debit and credit cards, and they are expecting to see similar moves from insurance companies.

Regulations alone won’t be enough to protect sensitive information in a world where hackers are constantly finding new ways to breach security.

Recently, Generali partnered with the start-up CyberSecurTech to improve the company’s approach to cybersecurity.

Because data breaches are such a big risk nowadays, this new division will focus on educating customers on how to prevent cyber attacks and developing technical and legal responses to breaches.

Generali’s new cybersecurity team has also created a platform called Majorana that uses big data to analyze risks, search for data leaks and continually identify vulnerabilities in the system.

As this platform evolves, it could serve as an example to other insurance companies searching for ways to meet growing security concerns.

Virtual and Augmented Reality

Insurance agents face challenges in the field that simply cannot be replicated under traditional training conditions.

In the past, insurance agencies have used a single training building to train new employees in identifying and collecting information on damages.

However, this approach creates a limited training experience that doesn’t represent the multitude of situations they encounter on the job.

This gap in training is exactly where virtual reality come into play.

Insurance agents face challenges in the field that simply cannot be replicated under traditional training conditions Click To Tweet

Trainees can be walked through hundreds of potential scenarios and multiple agents can be trained at once. VR also allows for more specialized training so that home and auto experts receive simulations specific to their niche.

Furthermore, new scenarios can be continuously created and used to train even the most seasoned agents as the market changes.

For insurance companies, VR means that their agents will be more prepared and capable from the first day they enter the field on their own.

More accurate quotes and better customer service will translate into a more profitable bottom-line and more business from customers looking for a frictionless experience.

Virtual and augmented reality is also providing insurance companies with an interactive way to connect with customers and inform them about potential dangers.

Allianz insurance company created an AR-equipped house that customers can visit. As they walk through the house, they can view different areas with a smartphone-enabled device that reveals different problem areas and how accidents can occur.

2019: A Year of Digital Progress for the Insurance Industry

As the insurance industry continues to go digital, there are more opportunities to improve the customer experience, reduce the cost of premiums and cut operational expenditures.

In 2019, new technology will continue to push the industry forward, and it is up to each company to embrace the changes and look for new ways to meet customer demands.