4 Insurance Technology Trends for 2021

4 Insurance Technology Trends for 2021 2020 has been the year of disruptions. All businesses were pushed to the precipice of digital transformation to stay afloat and remain relevant in the new dawn brought about by the Coronavirus pandemic. The insurance industry, which for large part remained traditional until then, was also subject to rapid digitalization and digital adoption. Fortunately, the gradual growth of the insurtech industry was readily present to facilitate this shift. Let us look at the technologies and tools that have expedited the rapid growth and digitization of the insurance sector.

Internet of Things (IoT) The Internet of Things (IoT) unlocked new avenues for deriving information from a variety of data sources. Through IoT integration, insurance agencies could automate the data sharing and management processes, which helped them better understand customer requirements. Additionally, these data insights also helped insurers speculate or decide on the premiums, insurance rates, instances of fraud, and losses. It can be the stepping stone for predictive modeling that influences risk assessment and underwriting policies.

Artificial Intelligence (AI) Artificial Intelligence (AI) has brought about a revolution in the working of the insurance industry. Several AI-driven tools have been instrumental in boosting profitability while reducing operational hurdles and costs. AI technologies often point towards efficient solutions that can streamline operations and simplify the claims settlement process. AIpowered applications will also lay the foundation for increased efficiency and productivity to improve customer servicing.

Machine Learning (ML) Machine Learning (ML) is a distinct discipline of AI that plays a vital role in the claims processing task with scope for automation. As the files are now digitized and stored over a centralized data repository, ML can easily analyze the existing data and derive actionable insights into how to make the best use of customer data. It also follows a fixed path based on user-defined algorithms, which maintains compliance with regulations and organizational

policies. With greater processing power, higher efficiency, and no room for errors, ML can be a game changer in the insurance industry.

Blockchain Technology (BCT) Blockchain technology (BCT) relies on a distributed tamper-proof ledger that records transactions in real-time. It also allows networked users to verify the transactions through auditing. Through technologies like computational power, immutable agreements, and cryptography, the technology also maintains robust security. As it distributes authority and accountability, it injects transparency throughout the system and every party involved in the process maintains integrity. BCT can digitize and codify the movements, which can play a critical role in improving the insurance industry. It also carries other benefits like risk or fraud detection and mitigation, new product and service introduction, cost reduction, back-end operation organization, and more.

Concluding Thoughts The advent of insuretech is set to forge new paths of productivity, efficiency, and customercentric experience. With innovative tools and applications unlocking greater potential in how insurance agencies operate, it is only a matter of time until these become an integral part of the “new normal.”

Customers and end-users can enjoy improved services. Brokers can follow defined roles and process efficiency. Insurers can streamline operations, boost productivity, and drive profits. All in all, everyone, from customers to brokers to insurance agencies, will benefit significantly from the adoption of these technologies.