Insurance industry though a late starter in adopting breakthrough technology is slowly but surely catching up. All this is due to several start-ups using insurance technologies, and these companies are called ‘Insurtech’ Companies. These are the companies which adopt the latest technology to the insurance domain. click here to learn more about these companies. They are using some techniques like IoT, cloud computing, data analytics, GPS, AI etc. as per reports in www.markets.businessinsider.com/. The use of these technologies not only helps with customer satisfaction but also provides companies with the chance to measure the customer satisfaction, reduce prices and improve in more productivity.
Below are some of the technologies that the Insurtech Companies are using:
Data Analytics: Technology revolving around data is the basis of transforming the insurance companies. The business model of the insurance industry is around data. By using technology in analyzing data, companies can capture, interpret and create new policies based on this valuable information. The advantage of this way of obtaining is that it is non-intrusive and automatic real-time data regarding the customers. That real-time data is helping companies come up with strategies to manage the risk involved. Using this information many companies are getting opportunities to write policies that are more profitable for them.
Machine learning: Artificial intelligence or AI is a technology that is rapidly evolving not just in the insurance industry but in all other industries too. The idea behind AI is to build a system that can think like human beings, and machine learning is to teach machines to learn like humans. Machine learning has hugely impacted the insurance companies, below are a few ways it helps transform this industry.
Customer service and advice on Insurance and the policies the company provides.
Processing of claims and the various transactions involved in it.
Risk and fraud management
Policy creation and pricing apart from managing risk.
Internet of things: IoT helps provide data, analyses and utilize the data to enable the policy makers to mitigate risk and ensure policies accordingly. The internet is the backbone of this technology as it helps monitor, collect and later share the data. These devices which are connected to the internet can include all kinds of systems like health, automobile, electrical, transport, etc. Going forward, IoT devices are going to multiply as the manufacturing costs of these will reduce and you will have more connected devices which will impact all the insurance industries like health, life, car, home, etc.
Smartphones: Smartphones and mobile technology is a crucial contributor to the insurance industry revolution. With sale and usage of smartphones at a high, insurance startups are using these techniques to sell their product.
Insurance industries are no longer taking technology lightly. More insurance companies are raising billions of dollars to invest in technology. Many insurance startups are using innovative technologies to sell their product through offline or online retailers. The uniting factor in all these companies is that all of them are using the latest technologies which is not only helping the industry but is most beneficial for the customer.