With the rapid transformation into a digital industry, the insurance sector unleashes new and innovative advanced arenas. The COVID-19 pandemic has given this industry enough reasons to shift to a fast-moving digital world. Since then, it has been growing and is expected to touch the milestone of digitalisation in the coming future. Adopting advanced technologies in the insurance industry is considered an integral part of developing various products and formulating a progressive business model.
Also, it creates numerous opportunities for the insurance industry to extend across the boundaries of traditional notions. Well, this growth is visible in the Indian Insurance market to some extent. According to reports, India is the second-largest market in Asia-Pacific, which accounts for 35% of the US$3.66 billion insure-tech-oriented venture investments made in the country.
So, here are some technologies that are more likely to pave a future-proof path for the insurance industry in the coming days.
The rise of technology highly influences the insurance industry to look to a future that can help insurers gain unparalleled advantages. So, to stay in the competition, insurance companies need to make themselves future-proof. And for doing so, the integration of advanced high-tech business models is imperative.
Two remarkable technology trends are more likely to hit the insurance industry in the coming years - Cognitive Computation and System Decentralisation. Insurers will utilise these technologies as proprietary tools to bring about positive changes to the industry and make its future sounder and more progressive.
AI has already marked its advent in the world of insurance. The rise of chatbots and quick claim management is proof of AI’s fast-pacing growth in this sector. However, in the future, it will continue to create more impactful and positive changes.
AI algorithms are imperative in creating a risk profile. And this can significantly minimise the cycle time for the completion of the purchase of an insurance policy. Thus, a growing wave of mass-market instant issuance of insurance products is about to hit the industry. AI-driven systems allow for life underwriting in a much granular manner. Also, it aims to enable life carriers to identify risks effortlessly.
The technology of robotics has lately witnessed a noteworthy impact in the world of digitalisation. It is expected that this innovation will continue to create changes in human interaction with insurance companies.
Besides, robots will streamline the entire workflow of insurers and minimise the amount of time spent on repetitive manual processes. From the extraction of essential data to claim verification, all intensive tasks can be automated and add pace to work. Also, the implementation of robots will reduce the possible chances of human errors.
Drones are already taking up a place in the insurance industry, and they will continue to change the outlook and methodology of insurance companies in the coming future. Programmable autonomous drones will be more actionable for agricultural insurance products.
These drones will be active participants in risk assessment. Also, they will help insurers to manage claim criteria assessments.
Devices with sensors have been present in the industry for quite a few years. However, it will become more prominent in the coming years and see a significant increase in the number of connected user devices. High-tech connected devices like smart cars, virtual home assistants, and fitness trackers will keep emerging and increasing in number.
So, experts estimate that by 2024-2026, there will be more than trillions of connected devices that will result in the collection of massive amounts of new data, which, in turn, will allow insurers to understand their consumers better. And based on this pool of data, every insurance company will strive to create newer product categories with personalised features, customised pricing, and enhanced speedy service delivery.
Thus, like any other industry, the world of insurance is also catching up to the rapid speed of digitalisation. The advent of AI/ML, cognitive computation, and automation technologies are burning proof that this industry is flexibly accepting all the positives. Hence, time is not so far when the issuance or claim settlement of insurance policies will become a one-click task.