Advanced insurance technology is already an integral part of the property and casualty insurance industry, for both insurers and policyholders. Getting insurance quotes can be as easy as the click of a button, managing coverage can usually be done through a mobile app, and paper insurance cards are largely a thing of the past.
Advanced insurance technology is already an integral part of the property and casualty insurance industry, for both insurers and policyholders. Getting insurance quotes can be as easy as the click of a button, managing coverage can usually be done through a mobile app, and paper insurance cards are largely a thing of the past.
Predictive Analytics
Many insurers use predictive analytics to collect a variety of data to help them understand and predict customer behavior. However, there are new ways it can be used to improve data accuracy.
In 2021, insurance companies can use predictive analytics to:
Pricing and risk selection
Identify customers at risk of churn
Identify fraud risks
Classify claims
Identify outlier claims
Artificial Intelligence (AI)
The use of artificial intelligence (AI) has grown rapidly, and AI-enabled devices have become commonplace in homes around the world. According to a report by Deloitte Digital, more than 35.6 million people in the US have voice-activated AI assistants in 2017, and global spending on these technologies is expected to reach $47 billion in 2020. How can the insurance industry take advantage of this widespread and accessible technology?
Consumers are always looking for personalized experiences, especially when purchasing something as important as PandC insurance. AI offers insurers the ability to create these unique experiences and meet the high-speed demands of modern consumers. The key is to use the capabilities of AI to leverage the vast amounts of consumer data available to create personalized experiences based on a person’s behavior and habits.
Machine Learning
Machine Learning Insurance technology trends in 2021 include the intersection of different technologies, all in the name of improving accuracy. This automated review can cover more than just claims – it can also be used for policy administration and underwriting. When it comes to machine learning adoption, you don’t want to be left behind. All signs point to machine learning becoming a mainstream tool in the insurance space. An SMA survey found that 66% of Pandu’s insurance executives believe machine learning has a high potential for commercial lines of business, while 53% of executives believe it has a high potential for private lines of business.
Internet of Things (IoT)
Most consumers are willing to share additional personal information if it means saving money on their insurance policies, and the Internet of Things (IoT) can automate much of this data sharing. Insurers can use data from IoT devices, such as the various components of smart homes, car sensors, and wearable technology, to better set rates, mitigate risk, and even prevent claims in the first place. IoT will power other insurance technologies with first-hand data that will improve underwriting accuracy
, give policyholders more opportunities to directly influence the price of their policies, and give insurers the ability to improve accuracy and revenue.
Blockchain
First, what is blockchain data? First, what is blockchain data? it’s a peer-to-peer distributed ledger of records called virtually incorruptible blocks. Blockchain makes cryptocurrencies like Bitcoin possible. Blockchain as an insurance technology is still in its infancy, but insurers would do well to be one step ahead.
