The next generation of customers

The insurance industry has been slow to adopt new technologies. However, with today’s customers expecting immediate access to tools and information, insurers are well aware of the rapid changes. Traditionally, customers were limited to insurance call centers. Now, with the rise of big data and artificial intelligence, consumers and cooperate clients alike have become accustomed to instant price transparency and the ability to purchase products through different channels. Technology’s impact on insurance has been significant, with many businesses tailoring their services to the new era of customers.

Artificial intelligence is one of the emerging technologies that insuretech companies have begun to utilize. For example, Oscar Health is an insuretech company that used its web-based data to streamline health insurance while offering a range of services, such as the ability to evaluate different health providers. The growth of technology is re-defining the relationship between insurers and customers. Rather than just listing price options, insuretech companies can provide data-driven assistance to add more value. In turn, this creates a much more personalized experience.

The rise of data and connected services

Technology is paving the way for a much more connected and secure insurance industry. Fraud has long been a major issue, but with new technologies, insurers have more tools at hand to detect fraudulent activity. The FBI has estimated that insurance fraud costs the industry more than $40 billion each year, which means it’s more important than ever that organization use the applications available to combat fraud.

Machine learning and AI have the potential to help reduce fraud costs in the future. AI software can be used to gather data, find patterns and identify suspicious claims. As a result of automation, the claims process has been made much more efficient and accurate. In a speculative article, McKinsey predicted that the number of employees needed to make an insurance claim will be reduced by 70 to 90 percent by 2030. American insurance company Lemonade has already been using AI and automation to maximum effect, reinventing the traditional property insurance model. Lemonade even set a world record by paying an insurance claim in just three seconds. Indeed, the future of insurance will be fueled by automation and extensive data analysis. As the demand grows, insurance companies must make sure they understand how to implement these technologies and deliver a strategic plan to ensure the right level of customer engagement.

An on-demand future

There’s no doubt that insuretech is creating an on-demand future. Technology is giving customers access to digital insurance coverage and changing the way insurance companies produce products and underwrite claims. If insurance companies want to remain ahead of the curve, they will need to shift their business model and create an outstanding customer experience that meets the current landscape. In the age of digital disruption, businesses must make sure their brokers are still engaged in the workplace by encouraging the importance of the human touch. As our technology advances, it’s important to recognize the role of the insurance broker and that big data, AI and machine learning will be used to serve brokers rather than replace them.

Are you looking to hire?

There’s no question that the insurance sector is undergoing radical changes. With the growth of technology, businesses will be able to provide a more efficient and innovative service. Hanover is a specialist Talent Solutions Provider that has vast experience hiring the best talent for companies in the insurance sector.

We have an excellent track record of building strong relationships with our clients. Our team of experienced search consultants have been well-trained to tackle the most complex challenges that our clients face. We understand what it takes to find and attract and retain the top talent and we support our clients at every stage of the process. If you would like to get in touch, please contact us today and take a further look at our insights page for more interesting articles.