As the world continues to become more digital as well as connected by technology, insurance companies and agents are facing pressure to keep up with the times in order to stay competitive. In fact, many experts believe that in ten to twenty years, due to these technological advances, the insurance industry will look completely different than it does today.
To keep up with competitors and continue to be as efficient as possible, it’s important for members of the insurance sector to pay attention to the latest technology trends. And begin to adopt them into their business model. The speed that technology is advancing is frightening to some, as people often view change as a negative thing. But many recent innovations have the potential to streamline various aspects of the industry. These benefits include improving operational efficiency, creating more personalized experiences for clients, and saving time along with money. If you are an insurance agent who is curious, excited, hesitant. Or all of the above about how technology will begin to affect your day-to-day operations, please read through further. We’ve laid out some of the most impactful ways that technology is reshaping the industry in the present day. And what implications it could have on the future.
With an increased amount of customer data, the insurance business has become more complex over time. Having to manually gather all of this data from various areas of your business and then analyze it can slow down your operations and make decision-making less accurate. Not to mention how expensive it can be. Industries such as insurance, that are filled with huge amounts of data, are the top candidates for integrating AI into their business model.
Instead of relying on out-of-date databases and manual entry. AI has the ability to increase the speed at which data is compiled and processed. This will ultimately increase efficiency and accuracy. When there is a lesser chance of error, insurance agents are able to reduce risks for their company. As well as for their clients. Gathering and analyzing data at faster and more accurate rates is the bigger picture of AI. On a more granular level, some of the top ways that AI has already begun to make a difference includes, aiding agents with risk management, fraud prediction and detection, document analysis, market research and more personalized customer service.
The harsh reality is that in order for you and your agency to stay up to date with the pace and growth of the industry, many traditionally manual processes must be replaced. By getting ahead of the curve and incorporating AI tools, you’ll be able to remain competitive and improve various functionalities as an agent.
In layman’s terms, the cloud is a large network of remote servers all around the world that are interconnected and operate together. This allows organizations to store, access, and share data so that they do not need their own data processing center. Cloud technologies have been around for many years, but the adoption of the cloud by various industries has been slow. In 2023, the majority of insurers and agencies have finally taken advantage of this useful tech. In order to use it to its full potential, it’s important that you have a full understanding of its functionality and role in the industry.
- Increased Access and Collaboration– The cloud allows insurance agents to access data, applications and other tools from anywhere at any time. By providing this ease and flexibility agents can now work remotely, serve clients and collaborate with colleagues from any location. With the cloud you’ll be able to share information, updates and documents in real-time.
- Cuts Costs – By storing information in the cloud, you can eliminate the need for software updates, server maintenance, and other tech investments that can be quite costly.
- Security of Data – The cloud also offers great security and data recovery capabilities. By using tools such as data encryption and protection, you can be sure that important company and client information is always secure. In the unfortunate case that the hardware fails, the cloud is always backed up. Allowing you to quickly restore the information that otherwise would have been lost permanently.
- Integration – Cloud systems can also easily integrate with various applications including underwriting platforms, policy admin systems, insurance rating platforms and more. This allows you to speed up processes by having all of your necessary tools in one place.
3.The Internet of Things (IoT)
The Internet of Things can be thought of as a network of physical devices, sensors and objects that are embedded with software and interconnected. The point of the IoT is for these devices to be able to collect and use data. Common examples of these devices include things such as home security systems, smartwatches, vehicles and industrial equipment. In turn these devices will make it easier to determine risk, mitigate risk and prevent losses.
By being able to improve the accuracy and speed at which risks are assessed. Agents and agencies will be able to give clients more accurate and fair policy pricing and coverage. With improving the accuracy of costs and policy details, customers will be more satisfied. And your revenue will most likely increase since they will trust you and your services. The best insurance example showing IoT devices being used is automobile sensors. These types of sensors can be placed on a vehicle and track the owner’s driving habits. So, you’ll be able to better analyze each person’s risk. Though this is the most popular example, as time goes on innovators in the industry are beginning to come up with other creative ways to implement this technology into various insurance sectors.
One of the more recent trends that has been adopted in the insurance industry is low-code methodology. With speed being so important, coding experts have developed technology that allows organizations to manage software and applications using a very minimal amount of coding. Low-code uses simple drag-and-drop functionality that allows companies to increase productivity since there is much less coding-expertise required. Now, employees that are not IT professionals are able to develop software, ultimately reducing man-power and effort. With this type of breakthrough technology, insurance workers will now be able to quickly and easily develop customized systems and applications without relying on the lengthy traditional coding process.
5.Telematics & Drones
Another exciting development is the use of telematics and drones. Though they haven’t made much of an impact on the health sector of the insurance world yet. Similar to the discussed Internet of Things, telematics are devices used to collect data. At this point, telematics are mainly being utilized in the auto and home insurance industries. But in time they will likely make their way into a variety of insurance markets. Examples of some uses of telematics include collecting data on driving distances, speed and accidents. As an agent you can then use this information to make important decisions. Such as determining costs of premiums and more.
On the same subject, drones are being used by insurance agents mainly to assess damage. Insurance companies can now send drones to take pictures and videos of things like property damage. Instead of having to send out a physical person. By relying on drones, the likelihood of human error is greatly reduced. Making companies more accurate with their assessments and giving clients better resolution and fairer payouts.
The continuation of technological developments in the insurance industry is likely to have significant impacts on you and your business in the future. Reliance on data analytics and automation from artificial intelligence will help streamline many processes for insurance agencies. Including client personalization, more accurate pricing and underwriting, risk-assessment and fraud detection. Implementing tools such as cloud storage will enable you to more easily communicate and collaborate with others. With the ability to cut costs, integrate with other systems and secure your data. The cloud stands as a tool that every company, insurance-related or not, will begin to use.
Additionally, the use of humans for varying processes will likely be replaced by technologies. Like telematics, the Internet of Things, and drones, making risk assessment much more accurate. This will in turn improve the satisfaction of clients. Other innovations like the low-code methodology, will make processes such as designing software and applications cheaper and less time-consuming. Since anyone will be able to do it, instead of just IT experts. Though we only touched on a handful of ways that technology will change the industry. The ongoing theme is characterized by improved efficiency, decreased man-power and better experiences for customers.
Long Story Short
In order to have a competitive edge as an insurance agent, it’s important that you don’t look past the technological trends of the industry. The technologies that we have discussed will help you effectively meet customer demands. And increase productivity for you and your peers. While we talked about some of the most cutting edge and relevant advances. These developments are just the tip of the iceberg. Beyond simply adopting them, it’s also vital for you to continue to look for new ways to implement them into your daily routine. In a fast-paced industry that is always shifting, changing and growing, the best way to stay up to date is by adopting these tools and putting them to good use.
At Benepath we provide insurance agents with data leads and inbound phone calls to increase their sales and return on investment. All of the leads we generate are exclusive and produced in real-time. We offer leads in a variety of verticals including: individual and group health, life, Medicare and commercial insurance. If you are interested in purchasing leads or learning more about our generation process, fill out a form or give us a call at 888-684-3121.