Shaping the Insurance Industry in 2024: Part Two – Evolving Technology Trends for Companies
In the property and liability insurance market, digital transformation has enhanced processes from quotation through coverage administration. As we move ahead to 2024, this digital transformation is accelerating with an omnichannel approach to customer service and other business-related issues.
In fact, insurers of all sizes are utilizing flexible, long-lasting solutions in order to preserve their competitiveness. For insurers looking to get the upper hand, here are five more cutting-edge technological trends here in Part Two.
6. Data from Social Media Platforms
The use of social media in the insurance sector is expanding beyond clever marketing campaigns. For P&C insurers, social media data mining is enhancing risk assessment, enhancing fraud detection capabilities, and enabling completely new customer experiences.
Consider the Dutch insurance provider Kroodle as an illustration. They conduct all their consumer interactions through social media. Customers log in using their Facebook credentials and then use a Facebook app to submit claims, seek estimates, and do other tasks.
Social media can be used by insurance technologies to investigate fraud. To spot such anomalies, insurers can examine insureds’ social lives and compare them to their claims histories. Insurtech Insights reports that between 2014 and 2021, the use of social media data for fraud detection more than doubled.
7. Connected Vehicle Technology
Telematics capabilities will continue to have an impact on auto policies. Consider telematics in the context of insurance technology as wearable technology for your vehicle. Nowadays, monitoring systems for cars are available. One example is Progressive’s Snapshot, which uses analytics software to monitor and process data on speed, location, accidents, and other factors to assist calculate your policy rate.
Telematics has many advantages for both insurers and insureds. In P&C insurance, telematics will:
1. Promote safe driving practices
2. Reduce insurance companies’ claim expenses
3. Transform carrier customer interactions from reactive to proactive
8. Conversational AI Agents
Some predictions state that chatbots will fuel 95% of all client interactions by 2025.
Chatbots may smoothly communicate with clients using AI and machine learning, saving time for all parties involved in an organization and, eventually, money for insurance firms. To save human assistance for more complicated situations, a bot can guide a consumer through the application or claims procedure for a policy.
“Kate” is a virtual assistant from Geico that interacts with consumers by text or voice, providing 24/7 assistance with policy and coverage questions. Chatbot capabilities are anticipated to grow in 2023 and beyond as more insurance businesses invest in technologies like this.
9. Simplified Development with Low-Code
Today’s insurers must be able to effectively manage software platforms, roll out changes, and launch new products onto the market. Previously, this process needed an experienced developer or IT team, but recent developments in platforms for software-specific coding have made this process simpler than ever.
Business stakeholders, not only IT specialists, can update and manage apps and software with the use of low-code configuration tools that use a simple drag-and-drop interface. Insurers will be able to swiftly deploy new and innovative user interface (UI) features that clients need, in a fraction of the time typically needed, with only basic or even modest app and software knowledge.
The following are the main gains from low-code development:
1. Significantly faster time to market
2. Organization-wide app development on a large scale
3. The capacity to develop fundamental traits that can be enhanced; 4. Enabling staff to accept responsibility for their work/offerings
According to Statista, 29% of respondents believed that low-code development moves 40–60% more quickly than its conventional version. Therefore, it should come as no surprise that low-code solutions are quickly taking over as the preferred method for application development. This transition is so significant that according to Gartner research, by 2024, more than 65% of all app development efforts will be carried out using low-code approaches. That was a big jump, wouldn’t you say?
10. Drones
Insurance companies are taking to the skies, or at least their drones are. Carriers will employ unmanned drones as a technology tool in the insurance sector more frequently in 2023. They can be used at several stages of the insurance lifecycle, including gathering data to calculate risk before a policy is issued, helping with preventative maintenance, and assessing damage following a loss.
Farmers Insurance is a wonderful example of a company that employs Kespry drones to analyze risk and property damage. In addition to doing evaluations like roof inspections, these drones also upload their data to the cloud for analysis. Another instance of how the insurance industry combines IoT and other technologies is this one.
P&C insurers are always searching for the most cutting-edge developments in insurance technology. They are able to provide the experiences that customers desire in the modern market, which keeps them one step ahead of their competitors. Due to all the recent market advances, such as smart home technology, insurtechs, and microservices, 2023 and 2024 will be years to watch for advancements in insurance technology.
If you missed Part One, here are even more trends to get caught up on here.