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5 Technology Trends Insurance Companies Should Know and Implement in 2021

April 26, 2021
April 26, 2021 Mike Johnston

5 Technology Trends Insurance Companies Should Know and Implement in 2021

The insurance industry is always changing and evolving with the latest industry, market, and consumer trends. However, it’s also important to note that technology is one of the biggest transformative forces in this sector and that technology and tech innovation have the power to transform insurance companies as well as the experiences of customers around the world. Future-oriented insurers need to stay on top of the technological developments and implement new tech solutions that will allow them to stand out, create a more personalized experience for customers, and ultimately build a more powerful brand.

From optimizing your entire company for voice search, all the way to using IoT-enabled devices, machine learning and AI, as well as innovative apps, there’s a lot you can do to capitalize on tech innovation in the insurance game. So, today we’ll be taking a look at the top technology trends that you should know about and implement in your insurance business in 2021.

Predictive analytics with data science and AI

The ability to predict outcomes is the holy grail that the business world has always been searching for, no matter the industry or the niche. In the insurance game, this is one of the most important, lucrative, and industry-shifting goals, which is why it’s so exciting to be living in this day and age of data science and artificial intelligence.

Right now, predictive analytics is revolutionizing the insurance industry, even though insurers have been using complex mathematical models for decades now. However, it’s only now that we are able to truly make accurate forecasts using artificial intelligence and the computing power within. It allows us to understand customer behavior, predict outcomes, and make smarter strategic decisions.

Using predictive analytics, you can improve pricing and risk assessments, identify customers who are thinking of canceling their policies, anticipate customer and industry trends, identify risk factors and potential fraud, and much, much more. 

Using IoT for different insurance policies

The internet of things has been making waves across all sectors all over the world, and it has been doing the same in the insurance industry in a very big way. IoT is a big component of successful digital transformation nowadays, and there are many applications of IoT in the insurance business that can deliver better results and outcomes for the insurer, but also elevate the experience of the policyholder.

The primary function of IoT in insurance is to collect valuable user data to help assess risks, behaviors and trends, minimize risk as much as possible, and of course, to prevent losses. The key is to use IoT to collect first-hand data and elevate the accuracy of all assessments, allowing you to manage your pricing policy in a more strategic and comprehensive way, in turn improving revenue down the road. 

Better and smarter car insurance

Collecting valuable user data is becoming a big part of all insurance types, but nowadays it’s most prevalent in the car insurance sector. As policyholders are looking for more ways to save money on car insurance over the long term, providers can use the opportunity to offer discounts on insurance premiums using apps and IoT-enabled solutions.

For example, with a dedicated app that collects key driving data like behavior, driving speeds, and how much the policyholder drives on a daily basis, users can work on improving their score and meet the base requirements for a discount on their car insurance. Offering these kinds of incentives as an insurer is a great way to engage with customers, obtain relevant insights, and incentivize them to become loyal brand followers.

Utilizing low-code development

Given the fact that technology is advancing at a fast pace, it should come as no surprise that some insurers are struggling to push new, tech-driven solutions like these to market quickly enough. This has given rise to low-code development solutions that are now becoming extremely popular in many industries, insurance included.

From low-code web design to keep your website optimized and updated regularly, to low-code app development that allows you to roll out an innovative app for your customers without breaking the bank, this is a big tech trend you should capitalize on in 2021. Low-code development typically doesn’t require much technical knowledge or any at all, and it brings numerous features to the table that allow you to launch a new tech solution quickly as a forward-looking insurer.

Chatbots are on the rise

Chatbots are revolutionizing many industries in the online world, and by 2025, they will make up for 95% of all customer interactions. This is a clear indicator that this powerful technology has a place and a big potential in the insurance business. 

There are many applications for chatbot technology in the insurance game, especially now that chatbots are increasingly using AI and machine learning to provide rich, personalized experiences to customers. A chatbot can handle numerous repetitive tasks, but also walk customers through their policies, filing insurance claims, and handle various complex tasks.

Over to you

Technological advancement is changing the insurance industry and forcing insurers to adapt quickly or fall by the wayside. With these technologies in your arsenal, though, you should have no problem building a more successful insurance company on stellar customer experience and accurate forecasting.

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Mike Johnston

Mike Johnston is an avid blogging enthusiast and experienced freelance writer. He’s a regular contributor to numerous online publications, where he writes about business, finance, technology, and management.