Though the concept of being “customer-centric” isn’t necessarily wrong, it is important to realize that a balance must be struck for such an idea to be successful. Have we gone so far in this direction as to make its effectiveness diminish?

On-demand insurance has quickly become the go-to choice for entrepreneurs and gig economy workers alike – and it’s no wonder why. Insurtech companies have been thrilled at its surge in popularity, as more people are leaning towards a familiar user experience with their insurance purchase that mimics shopping on Amazon or another online platform. This shift toward relying heavily on smartphones, applications, or other advancements is transforming how we shop for coverage today.

Subsequently, the marriage between technology and insurance resulted in the origination of on-demand insurance. Now, customers can shop for and purchase policies with no need to seek assistance from an insurance broker, or agent. For instance, a new founder can acquire a general liability policy or even errors and omissions coverage rapidly with just a few taps on their smartphone.

As commercial insurance brokers look to the future, they are taking advantage of on-demand technologies like mobile apps that make it easier for them to connect with their clients. From submitting vital documents, making payments, and even inviting collaborators onto policies — there is no denying that this industry has undergone a modern transformation at an astonishing rate. Even though some may see insurance as archaic in nature, technology continues to prove itself as the driving force behind its innovation.

Unveiling the Impact of AI and Machine Learning on Insurance

Before we delve into the exciting changes that have taken place in the industry due to embracing these progressive technologies, it’s important to note how underwriting has been a major part of this transformation. It is widely accepted now that Artificial Intelligence (AI) and Machine Learning are changing the way insurance companies operate – from “detect and repair” to “predict and prevent”. This deserves closer attention as it could lead us toward an even more advanced future for insurers.

In the past, traditional underwriting processes were quite laborious and slow due to the manual evaluation of threats by human personnel. Fast forward to today, where automated underwriting is enabled by advanced algorithmic technology allowing businesses to make more precise decisions in a matter of moments! This revolutionary process has revolutionized risk management for modern-day organizations looking for ways to thrive in our dynamic digital world.

Despite our present-day trials, we should recall the not-so-distant past and its importance:

Insurance may be too easily accessible, especially with the influx of insurtechs that offer automated underwriting. These efficient tools can become a double-edged sword when it comes to larger companies or riskier industries like crypto and fintech– while they are great for simpler risks and smaller businesses, more intricate profiles require expert oversight in order to effectively secure coverage.

The Threats of On-Demand: Unnoticed and Underestimated

On-demand insurance has revolutionized the lives of many, and few would voice opposition to its benefits. Yet, when it comes to introducing new technologies, we must remain mindful that these advancements come with their own set of potential risks.

Let’s explore the double-sided risks associated with adequate coverage. To begin, tech-dependent brokers frequently fail to advise customers properly on what insurance products they should apply for. Additionally, these brokers leave clients wondering how precisely their protection should be structured or classified in relation to their business model.

We’ve witnessed the unfortunate trend of consumers making crucial insurance decisions without consulting their broker, leaving them with huge coverage gaps and often denied claims. As you can imagine, this is an incredibly dangerous avenue to pursue. Thankfully, clients are now empowered to modify vital coverages such as limits and deductibles — which must be managed by someone knowledgeable about insurance for a successful outcome.

Moreover, automated underwriting can create scalability issues for the larger risks that bypass the system. Once a human underwriter evaluates them, they are likely to non-renew or increase rates sharply in order to match the actual risk.

Proven and Practical On-Demand Insurance Solutions

Insurance customers demand various forms of communication from their brokers, transforming the role of a commercial insurance broker to meet these needs. Some prefer personalized attention while others would rather tackle tasks using an app. To ensure customer satisfaction and provide prompt responses, many carriers have embraced automation technology for certain underwriting data that are quantitative. Moreover, clients expect swift reactions from their insurers – making this shift towards digitalization paramount in meeting consumer expectations.

We should anticipate consistent advancement of automated underwriting among traditional companies and insurtech organizations. Virtually all life insurance firms have previously utilized digital processes, while commercial lines are projected to become increasingly reliant on automated underwriting with the notion of “predicting and preventing” in mind.

Ultimately, automated or on-demand insurance solutions have their place in the industry. Yet we should understand when clients, brokers, and underwriters require specialist expertise and attention. Combining human experience with technology is achievable – only if both forces acknowledge each other’s strengths and limitations for what they are.

For the past five years, 52% of global equity in the insurance industry has been unable to reach its cost of equity return on investment. According to McKinsey’s 2022 Global Insurance Report, although projections for premium growth indicate a recovery from 2020 pandemic-related declines (1.2%), numerous challenges remain ahead: consumer trends are changing and advanced technologies present relevant issues that must be addressed if insurers wish to stay competitive in this ever-evolving landscape.

Intelligent automation (IA) can revolutionize the traditional model, replacing it with an effective and cost-effective alternative. By adding IA to claims management, underwriting, pricing tactics, and distribution processes insurance companies are able to bolster profits while improving customer service as well as employee satisfaction.

What factors are causing the insurance industry to struggle?

The insurance industry is in a stagnant state, unable to bear the burden of profitability. The advancement of technology has opened customer options with price transparency and rapid access, creating a fiercely competitive market where businesses must battle for customers’ attention. Consumers now have more power than ever before when it comes to choosing an insurance provider due to the abundance of information available at their fingertips.

In recent years, property and casualty insurers have been unable to make cost-cutting measures work. Consequently, the entire industry has witnessed its return on equity fall below what it costs them for capital – except insurance brokers which are the only segment of this field with a positive economic growth rate. This contrast is further compounded by scant market demand in established markets leading these companies to rely more heavily on price hikes instead of an increased number of clients and new coverage options as was once their strategy.

The industry is facing a significant threat due to the changing growth model that involves increased prices. To break away from this, and cultivate sustainability-focused growth as well as innovation, advanced technologies must be utilized. This can provide lower costs for customers and employees, a better experience when it comes to customer service or the decision-making process, plus improved productivity overall.

What has driven digital transformation to be a necessity for the industry?

To satisfy the growing needs of the marketplace, insurance companies must increase their operational speed. According to McKinsey’s research, what normally took years now must be done in mere months or weeks – an ambitious goal that can only be attained with smart automation capabilities.

By introducing AI into the mix, insurers are able to benefit from reduced turnaround times, successfully manage higher volumes of applications and eliminate errors associated with manual processes. This newfound efficiency provides employees more time for creative problem-solving in order to come up with unique strategies, pay attention to complex cases and craft personalized customer experiences.

In today’s competitive business environment, it is essential to stay ahead of the competition. Consumers want the convenience and ease associated with digital channels but crave personalized service that only a human could provide. Insurance companies can set themselves apart by creating an ideal balance between automated technology and customer-oriented communication tailored specifically for each individual client. By doing this, they will be able to give their customers what they need while remaining profitable in such a turbulent market.

The emergence of Insurtechs – companies leveraging technology to maximize savings and efficiency within the insurance industry – has profoundly impacted IA’s significance in the future. It is evident that they are a force to be reckoned with considering global investments have gone from $1 billion in 2004 up to an astonishing $14.6 billion this year! Not only do these tech-savvy organizations provide improved customer experiences, but they also hone their focus on marketing & distribution along with property & casualty products which gives other insurers valuable insight into where value can be added.

How is the insurance sector utilizing intelligent automation to its fullest potential?

With the pressure to stay within budget, transitioning away from legacy systems and siloed functions can seem like an overwhelming task for many insurance companies. Fortunately, partnering with an automation provider provides a much-needed respite. These partners facilitate improved use of existing systems through digital workers who can weave between different applications and synchronize data information seamlessly – enabling insurers to selectively dismantle their legacy system in more gradual steps rather than having them overhaul everything at once.

By leveraging this transitional automation strategy, tasks such as onboarding, data analysis, claims settlement, and invoicing can still be automated – thus freeing up human workers to focus on more valuable activities. As a result of the reduction in manual labor required for these processes insurance companies will find themselves able to quickly settle customer disputes and comply with the most recent regulations without having to worry about extra costs or delays. Moreover, since IA initiatives reduce workloads, insurers are now able to automate additional services while simultaneously modernizing legacy systems that deliver increased value at no extra cost!

The demand for insurance is predicted to continue growing this year, particularly in emerging markets. Yet the long-term success of the industry will be based on its capacity to respond quickly and seamlessly by leveraging advanced digital technologies. To stay ahead of the game, insurers must learn how to leverage these tools to remain relevant now and into the future.

As technology continues to progress, insurance companies are faced with an ever-growing risk of malicious attacks that could jeopardize the data they retain on their policyholders. It is anticipated this threat will only increase in frequency and intensity over the coming years.

In today’s digital age, the chances of facing a cybersecurity attack are increasingly high. Data shows that the United States faced 46% of the world’s cyberattacks in 2020 alone – a worrying figure more than twice higher than any other nation. It is no longer “if” an organization will be targeted by hackers; it’s when they can expect to encounter such a threat.

As the risk of digital breaches increases every year, companies in high-risk fields must take a proactive approach to security. It isn’t about being more prepared than competitors – it’s about evaluating your resources and determining which ones are worth protecting from attack. This will help you determine your level of susceptibility and what preparation steps need to be taken.

Predicted to become more frequent and intense in the future, cyber-criminals are increasingly targeting insurance companies for their vast caches of personal information. The massive amounts of Personally Identifiable Information (PII) stored by insurers are highly sought-after resources on the dark web, with millions of Americans already affected. To protect their policyholders from nefarious actors, it’s essential that these organizations continually invest in cutting-edge security protocols and practices.

With the cyber threat landscape constantly evolving, 68% of business leaders feel like their cybersecurity risks are rising. As a leader in an insurance firm, it is time to take action and guarantee that you are fully prepared for any impending threats. Here’s how: maximize your team’s efficiency and response times by taking preventative steps to limit all potential risks posed by cybercriminals.

1. Prepare Your Employees with the Essential Skills to Reduce Risk

It is critical to consider all potential vulnerabilities when analyzing security risks. A study revealed that 95% of cyber-attacks are caused by human error, which can happen at any access point during online activity. Therefore, teaching employees the appropriate digital safety techniques should be a top priority to prevent misfortune.

Here are some tips and tricks for keeping your data secure:

  • Instill the Responsibility of Device Care — Recent data from Forrester revealed that 15% of corporate intrusions are caused by lost or stolen devices. With remote work on the rise, it is crucial to be proactive and take precautions; any device–personal or professional– can become a gateway into your network. To stay safe, IT teams should consider investing in a device management solution that allows them to manage employee devices remotely and minimize risk exposure. However, this must only serve as an additional security measure—it shouldn’t replace existing solutions.
  • Educate Staff to Identify Suspicious Behavior — To maximize the safety of their devices, employees must be trained to recognize any possible signs of suspicious activity. This could include new apps and programs suddenly appearing on their device; a slow-down in performance for no clear reason; added browser extensions or tabs that weren’t there before; as well as loss in mouse/keyboard control. Thus, it is essential for all personnel using company equipment to stay alert and mindful of such occurrences.
  • Safeguard Confidentiality at All Times — Make sure to properly communicate the importance of secure processes such as virtual private networks (VPNs), multi-factor authentication, and frequent password changes to all staff. Showcase tangible examples of data breach consequences in order for employees to comprehend that threats can arise anytime, anywhere – placing them and their confidential information at risk too. This will emphasize how imperative careful security management is for everyone.
  • Make the Most of Training and Online Courses — To ensure your organization’s safety, frequent “security check-ins” and comprehensive virtual training courses are available from the Federal Trade Commission, Department of Homeland Security, and other reputable sources. These invaluable tools will equip you with everything you need to protect your business from harm.

2. Unlock the power of Artificial Intelligence (AI) and Machine Learning (ML)

As insurance companies become increasingly digitized, the employment of artificial intelligence and machine learning techniques can help mitigate risk. Data aggregation is a powerful tool for combating malware, ransomware, as well as advanced persistent threats (APT). AI & ML allow for exponentially faster data analysis to detect anomalies within datasets. Implementing these technologies further enables continuous monitoring of workflows and rapid response should an attack occur.

When searching for a cybersecurity solution to secure your firm’s data, you must be sure that it follows certain measures. Make access control management, examining data behavior, encryption of large volumes of information, and prevention from potential leaks top priorities in order to ensure the safety of your insurance business.

3. Design a Detailed Action Plan

Having a well-defined plan and protocol can bring peace of mind to all stakeholders – insurance leaders, investors, and customers. This strategy should encompass all possible safety protocols as well as emergency actions. Here are some suggestions for best practices:

  • Data Privacy Rules and Regulations: Designed to deliver a comprehensive overview of corporate data processing and guarantee the utmost safety, this guide will ensure your company’s security.
  • Retention Policy: This document outlines the specific requirements for where and how long corporate data must be retained, providing a comprehensive overview of storage and archival processes.
  • Data Protection Policy: Uncovering the way an organization manages the private data of its employees, customers, vendors, and other external stakeholders is essential.
  • Unfortunate Occurrence Reaction Plan: To guarantee a swift, competent, and systematic answer to security issues including ransomware strikes and breaches, appropriate responsibilities and processes must be followed.

Despite the possibility of a cyber threat appearing to be remote, it is essential for insurance firms to optimize their preparedness and security in order to protect against potential attacks. In recent years, countless businesses regardless of size have fallen victim to cyberattacks – an unfortunate trend that continues today. If your company relies on digital systems or employees engage with the online ecosystem, chances are high that you may experience either attempted or successful intrusion attempts.

Can your organization risk an unexpected disaster? If the answer is a resounding no, it’s time to act! Protect what matters most – resources, personnel, and especially customers. Put your plan into motion now so you can be sure of security in any situation.

As consumers shift their spending to explore new technological advances, the insurance sector is feeling the heat. Meanwhile, InsurTech startups are affording customers a more straightforward process of finding and buying insurance products online. To remain lucrative in this climate, insurers must anticipate change and wholeheartedly embrace it.

As digital technology becomes the new standard, what is in store for insurance leaders? Here in Part Two, we will discuss the final 8 of 16 digital evolution trends that are set to shape the future of the insurance industry over the next several years.

Did you miss Part 1 of the most prominent digital transformation trends of 2023? Read about them here.

The emergence of innovative strategies for success in the business world

9. Expansion of usage-based insurance

Usage-based insurance (UBI) is a revolutionary form of coverage that assesses customers’ premiums based on their real usage, in contrast to an assumed estimate. The most popular type of UBI is pay-as-you-drive insurance, which bases billing around the number of miles driven by the consumer.

UBI is gaining traction as a viable alternative to regular car insurance for infrequent drivers. Moreover, it can be used to motivate customers to adjust their driving practices in order to reduce the risk of crashes and other accidents on the road.

For instance, certain insurers provide rebates to customers who utilize telematics gadgets that monitor their driving behaviors and prove they are reliable drivers.

10. The exponential rise of telematics in insurance

Telematics is a data-driven technology that tracks the movements and activities of vehicles, making it increasingly popular among insurance companies looking to gain insights into their customers’ driving behaviors.

Telematics-based insurance is becoming more popular as companies seek to deliver highly customized pricing options for their customers. By gathering data on each customer’s driving habits and times of operation, insurers can accurately gauge the risk level associated with that person – which in turn allows them to offer tailored premiums at competitive rates.

Furthermore, telematics can help to uncover suspicious behavior. For instance, if an insured driver is suspected of driving recklessly with the intention of causing a crash, their insurance policy could be revoked.

As technology advances, so does workplace culture.

11. Working from home is a permanent fixture in today’s world

Working remotely has been a rarity for many years, yet it appears that even post-pandemic the culture of telecommuting will endure.

As per a survey conducted by BloombergQuint, there seems to be an evident rise in the number of workers who refuse to return back to full-time office work. In fact, more than one-quarter of those surveyed indicated they will continue working remotely for at least half the time even after the pandemic has ended.

To stay afloat in the post-pandemic world, insurers must arm their staff with the tools to work remotely. Paperwork and manual processes are no longer viable options; even prior to COVID-19 they were quickly becoming relics of a bygone era. Now more than ever, digital solutions that require minimal physical contact between employees (with some exceptions) are paramount for business continuity.

12. The advancement of digital data collection

Paperwork has been a long-standing annoyance in the insurance industry, but this is no longer justifiable. Insurers must take action to improve customer experience and put an end to cumbersome forms that are time-consuming and inefficient. It’s high time they seek out practical solutions for simplifying paperwork processes so customers have better experiences when applying for coverage.

According to a recent study conducted by Bain & Company, insurance companies on average only collect 60% of the necessary information required for underwriting. Consequently, 40% of this data is either never acquired or accumulated too late in the cycle.

Not only does this cause customer distress, but it leaves insurers vulnerable to heightened regulatory threats. In today’s digital world, insurance providers require the capacity to quickly gather, examine and act on data for optimal performance.

That is where digital customer data intake proves invaluable.

As digital forms and eSignatures become the norm, customers are expecting to be able to do nearly all their business with insurers remotely. This includes opening accounts, making payments, and renewing policies – all done online!

By transitioning how they gather customer data and signatures, insurers can maximize efficiency, bolster client satisfaction and cut down on regulatory risks.

Innovative strategies for minimizing risk

The insurance industry is increasingly integrating Internet of Things (IoT) technology into their risk assessment and underwriting processes, enabling them to make the leap from traditional methods of protecting against risks to actively preventing them. By leveraging cutting-edge digital advancements in this manner, insurers can stay ahead of potential threats and maximize customer service efforts.

13. Predictive analytics remarkable rise

Leveraging the power of predictive analytics, insurance companies are able to more accurately forecast risk and fine-tune their product prices. This innovative form of artificial intelligence is revolutionizing the industry by providing greater insight into potential future events.

To illustrate, insurers can adjust their product prices according to a customer’s probability of having an accident due to peak times or environmental factors.

14. The advent of IoT has created a demand for the innovation of streaming analytics

The IoT revolutionizes the insurance industry by providing instantaneous, precise data that enhance risk assessment accuracy. Additionally, it empowers policyholders with accurate pricing information to better assess their coverage needs.

Nevertheless, numerous obstacles exist when it comes to integrating IoT for risk assessment. One of the most prominent is analytics. The data provided by IoT is real-time – unfortunately, this type of analytics can be quite inadequate. To meet demand in the market and keep up with innovation, a surge in growth related to developing better analytical techniques has been observed lately; however, more research still needs to take place if we want efficient results from our efforts on these sorts of projects.

15. A heightened emphasis on the evaluation of risk through algorithmic solutions

By utilizing Artificial Intelligence, the insurance industry is taking a giant leap forward. AI-based tools are revolutionizing how operations and claims settlement teams operate, providing innovative solutions that can drastically improve efficiency within their respective fields.

Machine Learning brings forth much more than just claims to process; it can revolutionize the entire process. Owing to the digitization of all documents, AI algorithms can quickly analyze them and eliminate any manual processes completely. With Machine Learning in the picture, insurers are granted a plethora of new possibilities and opportunities for streamlining their operations with accuracy and efficiency.

By integrating machine learning and AI technologies, we can drastically enhance processing speed and accuracy in policy administration as well as risk assessment. For this reason, these cutting-edge tools will continue to gain traction among businesses for their sophisticated risk evaluation capabilities.

16. The change in culture from legacy to innovation

As the insurance industry evolves and welcomes digital-first insurers, tech behemoths, and creative startups to its ranks, it is undergoing an exciting transformation. This shift away from traditional conservatism towards a more dynamic landscape of opportunity has propelled insurance into unprecedented growth.

The insurance sector is witnessing a marked transformation in the way leaders and experts think. It’s becoming more evident that innovation is essential for success, leading to an evolution from a conservative framework into one centered on data-driven digital advancement.

It is evident that we are progressing towards more advanced technologies, delivering a superior experience for both customers and employees alike, while also providing increased agility in our operations. We will apply modern technology to long-standing insurance issues like risk assessment claims processing and policy sales with unprecedented results.

An unstoppable urge for swiftness

The insurance industry is in a state of flux, with new competitors and products emerging at an accelerated pace. To remain competitive, incumbents must keep up by developing, launching, and scaling innovative solutions quickly—before the competition makes its move. Staying ahead requires that they act faster than ever before to stay relevant in this rapidly changing environment.

In order to remain competitive in the market, it is imperative that insurers modernize their strategies by utilizing technologies and processes that will enable them to stay ahead of the game. With agile approaches and innovative solutions, they can maximize efficiency while staying on top of current trends.

Did you miss Part 1 of the most prominent digital transformation trends of 2023? Read about them here.

If you have any questions about LenderDock’s products or services, we’d love to hear from you using the button below:

As consumers shift their spending to explore new technological advances, the insurance sector is feeling the heat. Meanwhile, InsurTech startups are affording customers a more straightforward process of finding and buying insurance products online. To remain lucrative in this climate, insurers must anticipate change and wholeheartedly embrace it.

As digital technology becomes the new standard, what is in store for insurance leaders? Here in Part One, we will discuss 8 of 16 digital evolution trends that are set to shape the future of the insurance industry over the next several years.

Enterprise IT is undergoing a dynamic transformation.

Gone are the days when insurance companies viewed IT as merely a means of reducing expenses. Now, enterprise IT has become an essential component for businesses to gain a competitive edge and build customer loyalty. Technology is no longer regarded as just another overhead cost center – it is now seen as the strategic tool that drives growth and enhances customer experience.

1. The ascendance of low or no-code development

Low-code/no-code evolution is becoming increasingly popular in enterprises, even more so than it already has within the Small and Midsize Business segment. Most companies continue to depend on conventional development endeavors run by their internal staff or external contractors – yet this trend of no-code tools is beginning to change that.

Fortunately, vendors are now supplying mature and reliable no-code devices designed to prioritize security and compliance. This allows enterprises to outsource many of the software development responsibilities to line-of-business personnel while remaining in control.

As no-code tools become increasingly mainstream, it is not hard to comprehend why. These technologies are the perfect solution for IT teams overwhelmed with tasks and dealing with extensive backlogs. In addition to providing much-needed relief, they also aid in boosting productivity levels and pushing the team’s efforts even further.

No-code instruments are invaluable for their ability to quickly build and deliver cutting-edge digital solutions, products, and services at a far speedier rate than Conventional development projects. With no-code solutions, insurers now have the ability to revolutionize customer experience by providing better apps in record timing while simultaneously improving the overall quality of their service offerings.

2. The API economy’s growth

As companies increasingly want to share their data and functionality with outside developers, they are turning more and more to Application Programming Interfaces (APIs) – A set of regulations that dictate how two pieces of software communicate. There has been an undeniable surge in APIs over the past few years as organizations recognize their power.

The insurance sector is harnessing the power of APIs to generate breakthrough electronic goods and services. Insurers are already utilizing these technologies for a plethora of reasons, such as giving customers instant access to the most up-to-date quotes and market data with real-time updates or powering virtual assistants and other online customer engagement devices. With this newfound capacity, insurers can give their clients an unprecedented level of convenience and satisfaction.

LenderDock utilizes an API for real-time updates and information verification in its suite of SaaS products. For example, the LenderDock lienholder API makes it easy for carriers to manage lienholder and mortgagee data. It helps to avoid duplicates and incomplete information in internal systems by providing access to the industry’s largest database of accurate lienholder data. LenderDock offers the first-ever solution that automatically manages lienholder data. Their API, which can be accessed in real-time, helps verify lienholder policies, fix mortgagee information, and send digital notifications for billing and payments. This improves the efficiency of key mortgagee transactions.

The need for speed and flexibility, together with the wish to capture new profits are pushing this trend. Many insurers in the insurance sector have launched APIs to give third-party developers permission to construct applications and add services to their main systems. This grants them access to fresh income sources they wouldn’t have been able to obtain otherwise, while drastically reducing time-to-market.

As the demand for digital insurance solutions continues to surge, we anticipate more insurers beginning to take advantage of APIs. This will enable them to maximize this burgeoning market.

3. The increase of “headless technology”

Despite its slightly off-putting name, “headless tech”, or headless architecture, has been around for a while and is completely harmless.

Headless technology is a popular term in website building, where it has become the norm. Unlike traditional websites with back-end and front-end components along with graphical user interfaces; headless technologies have no such features.

The headless technology trend is closely linked to no-code options that are used for the development of interfaces that customers interact with. Insurance providers can now detach their visible user interface layer and subsurface data functionalities, enabling them to create unique digital interactions.

Within the insurance industry, this has become particularly critical as back-end systems are often hindered by outdated technology issues that render them incompatible with customers’ expectations of cutting-edge, user-friendly experiences.

In the coming months, we anticipate that a greater amount of insurance products and applications will employ the trend of compartmentalizing the enhancement of customer experience with both front-end and back-end operations while still allowing for seamless data exchange between them. This strategy is already becoming increasingly popular among businesses as it creates an effective workflow structure.

4. The ever-rising hybrid cloud architecture

Mordor Intelligence estimates that the hybrid cloud market will reach a staggering USD 128.01 billion in 2025, with an impressive Compound Annual Growth Rate (CAGR) of 18.73% from 2020-2025. This extraordinary growth indicates just how invaluable this cutting-edge technology is for businesses today and provides insight into its future potential for success.

Organizations are increasingly turning to the hybrid cloud model in order to take full advantage of both public and private clouds. Hybrid cloud architectures provide the ultimate combination of reliability and scalability.

By leveraging both public and private clouds, businesses can benefit from cost savings while also gaining access to the latest technologies and services required for success in today’s digital world. With hybrid cloud computing, companies are able to discover more efficient ways to store data that offer superior security measures as well as streamlined processes across organizations.

5. The customer data surge

With the continual development of digital channels, there is an immense surge in customer data production. This offers both a daunting test and an advantageous opportunity to insurers alike.

On one side of the equation, insurers must find efficient solutions to amass and keep track of their ballooning data sets. Conversely, those with the ability to use this mountain of information most effectively can harness the ability to attain a definitive upper hand in their industry.

As the years progress, Insurers are expected to make use of complex data analytics tools more and more, in order to gain customer-centric insights from existing datasets. By leveraging these insights, organizations can make substantial improvements to their consumer experience, underwriting procedures, and claims-handling operations. This will ultimately lead to enhanced product offerings or services that are better suited for the target market.

By incorporating the innovative technologies of no-code options and “headless technology,” financial service organizations are able to maintain their existing infrastructures, while simultaneously providing customers and employees with an enhanced digital experience.

The customer experience is unrivaled, taking precedence over all else.

With the advent of cutting-edge digital technology, customers have been armed with more authority than ever in the insurance industry, an arena that has always prioritized its customers.

Customers now have the luxury of effortlessly uncovering the most attractive deals, comparing various products, and with only a few clicks can easily choose the insurer that best fits their individual requirements.

To achieve this, insurance companies are prioritizing the customer experience. They are customizing goods and services to cater to individual needs more effectively while also improving accessibility through digital mediums.

6. Delivering customized digital products

Leveraging technological breakthroughs such as data analytics and machine learning, companies can now customize products to each individual customer’s specific needs – an idea that is not revolutionary but made feasible only by modern-day technology.

Not long ago, insurers would rely solely on customer surveys and other forms of market research to gather the necessary data. However, with an abundance of information that can now be acquired from sources such as social media, web search history, and even fitness trackers – insurance companies are able to access a much more comprehensive range of facts than ever before.

Benefiting from an abundance of data, insurers are now able to gain an even more comprehensive comprehension of their clients and can offer products that cater specifically to what they need.

7. The revolution of customer-driven service

As the insurance industry continues to evolve, customers increasingly expect more self-service options. Thanks to digital doorways and mobile applications that are now readily available, customers no longer need to talk directly with customer service representatives for even simple tasks.

To keep up with the ever-changing landscape, Insurers are making investments in digital self-service solutions such as online quoting platforms and automated chatbots to enhance the customer experience. This grants customers easier access to information without the need to face long wait times or complicated procedures.

Furthermore, customers are providing insurers with an abundance of extra time by taking on basic tasks themselves. This allows the insurer to prioritize more complex matters with greater efficiency and ease.

As customers’ demand for digital self-service continues to soar, insurance brokers and agents are making a move to the digital world. In April 2020, a survey of European insurance executives revealed that nearly 9 out of 10 respondents anticipate an enormous growth in digitization. Additionally, most expect a dramatic change in their customer channel mixes as well.

8. The growth of online services

Generally, insurance has been distributed through physical channels such as brokers, agents, resellers, offices, or call centers. Currently, the digital option is prevailing in the world of customer transactions. Consumers are now more comfortable with utilizing virtual processes for their dealings and insurance companies have risen to meet this requirement by expanding customer channels digitally.

Customers can access what they need quickly from any device of their choosing with options such as traditional web and mobile self-service outlets, chatbot technology, virtual customer assistants, and even voice-based aid services! This broad selection of user experiences allows customers to engage how they want in order to receive the best possible service.

Technology has revolutionized the way we think about traditionally offline processes. Gone are the days when tedious actions, such as collecting physical signatures or completing medical underwriting, required an in-person presence. Today, advanced technology enables these processes to be completed digitally with legally binding eSignatures and face recognition programs alongside telemedicine services.

In the next post, we will discuss Part Two of insurance trends to be on lookout for in 2023.

Through the use of technology, we now have much larger access to behavioral data that provides us with a wealth of insight into risk and exposure.

The insurance sector has a storied history of encouraging development and aiding society during times of transformation. In spite of these successes, the intricate global supply networks and digitalization we have today are proving to be more difficult risk areas for experts to handle.

To keep up with the shifting trends of today, we must embrace a world where economic value is prominently comprised of intangible assets such as intellectual property, data, and digital elements instead of physical possessions like property or machinery. Intangible risk factors are also among the greatest sources of business volatility currently – from reputation harm to cyberattacks and interruptions in operation due to unexpected events like pandemics.

Today, rapid technological progress and complex global networks are making it challenging to identify and measure some of the more traditional insurance risks. But that’s only the beginning; with clean energy, AI, and shared economies all becoming ubiquitous, revolutionary changes in our industry could be just around the corner. To keep up with this influx of developments—and remain relevant players economically and socially—insurers must modify their business models or face becoming obsolete.

Time is of the essence

The insurance industry’s secret to success is its unique perspective on time. It’s time for us to invest in long-term strategies for managing our risks and capital: Insurers are exceptional at digging into historical data to uncover patterns, as well as comfortable taking care of tail risks. After all, who else really prepares for events that happen once every four centuries?

This recipe has been successful historically, as change usually took place gradually even when disruptive innovations drove it. This timeline enabled insurers to be present for society in the explosion of international trade during the 18th century, industrialization and modern finance in the 19th century, and internal combustion engine and electronic communications within the 20th century.

Innovation in the 21st century moves at lightning speed; not only is technology advancing rapidly, but new disruptions are adopted with unprecedented haste. Facebook was just launched in 2004 and has since reached nearly three billion users worldwide. Similarly, Apple’s iPhone debuted to the public in 2007 – now over 4 billion people have smartphones! Last year marked an impressive 16.5 million electric cars on the roads across the world – a figure that has almost tripled within three years alone: many of these car manufacturers plan to transition completely to electric vehicles by 2030!

Competing to stay significant

Entrepreneurs, scientists, and investors are all confronted with the dangers related to pioneering endeavors. However, it is the insurance industry that provides a structured way of helping society counterbalance these perils while dealing with the volatility connected to widespread adoption. Just think about digitalization – when utilized on a large scale, this technology can become incredibly risky as there will be greater dependence on critical communications infrastructure.

To successfully adopt innovation, insurers must be able to respond and adapt swiftly to the disruptive nature that comes with new ideas. Currently, a battle is taking place within the industry as organizations race against each other to resolve this problem. Technology firms have access to plentiful data about hazards and are not restricted by any existing business strategies; additionally, customers can now use technology and data for self-insurance purposes or even exchange risks with others – creating more competition for insurers.

The insurance industry stands at a pivotal moment – remain as we are, avoiding risks that cannot be easily quantified and understood or up our investment in finding better ways to measure risk. Continuing with the traditional approach of assessing danger is a surefire way to become obsolete. It’s time to choose wisely and make the right decision if we want to stay competitive.

A blank slate

For businesses seeking innovative solutions to risk management, data is the answer. Although industry trends have traditionally relied on descriptive metrics such as location and type of business, technology now enables us access to behavioral information that provides a more comprehensive understanding of potential risks – from individuals’ shopping habits to their cybersecurity posture. This allows an insight into risk levels that were previously inaccessible using only surface-level descriptors.

If a new insurance provider were to begin, would it rely solely on traditional descriptive data, or seek out the advantages of modern behavioral data? Would an underwriter be content asking questions such as age and gender, or looking for information about driving skills and habits? Behavioral data has long been regarded as a complementing tool alongside its predecessor. In today’s industry, however, using only traditional methods may soon become obsolete; instead opting for more reliable contemporary alternatives that offer richer insights into customer behavior.

Looking to stay relevant

Insurance companies are just beginning to acknowledge the possible benefits of utilizing data aside from what is traditionally used as a measure of risk. To expedite this process, it is vital to invest in innovative ways to collect behavioral information and deploy nimble tools that will provide us with insight into potential risks. It’s time for insurance providers to reclaim their essential part within our innovation system — being at the forefront of enabling society to gain access to new innovations and successfully confronting any issues caused by sources of uncertainty.

How is insurance verified?

To prove that coverage exists for an insured party, a COI (Certificate of Insurance) is often requested or required by a third party. For the insured, it is a digital or physical form that shows proof of being covered by a particular type of coverage (e.g., casualty, liability, etc.) in the event of a claim being filed against them by a third party.

Any time that a specific insurance plan needs to be verified by a regulatory body, legal representative, employer, etc., a COI is the final proof of its coverage. And while it isn’t a legal contract, it is evidence that an insurance contract exists between the person insured and the carrier.

What to look for on a COI

Usually, COIs contain one page of pertinent information organized in a recognizable pattern. Here are a few things to look for on a COI, confirming the document is legitimate and not fraudulent.

Basic information about both the policy and parties involved, including:

  • Effective policy date
  • Name of the insured with contact information
  • Producer serving the policy
  • Company providing the coverage, labeled using letters

COIs also contain detailed information about the specific coverage being provided and final information on the holder of the certificate, including:

  • Certificate holder that matches the “insured” above
  • Statement from the insurer stating they may – but are not obligated to – notify the holder of the certificate in the event of a cancellation of the policies on the certificate
  • Authorization representative of the insurer

Certificate management

Standardization of COIs streamlines the verification process while also making it feasible for companies to be able to process large amounts of COIs for different coverages, policies, and insureds. But even with standardization, it can be challenging for larger companies to manage the COIs with the growing network of their strategic partners.

LenderDock makes COI management simple & easy

LenderDock is the first and only cloud-based solution that empowers banks and lenders to generate On-Demand Certificates of Coverage and Evidences of Insurance all in real-time.  Insurance providers recapture significant time and resources by enabling a true self-service environment for loan originators and mortgage banks to access and verify necessary policy-related data.  Insurers across the country are taking advantage of LenderDock’s platform for immediate and valuable cost savings and operational efficiencies.  To learn more about LenderDock’s unique lienholder process automation ecosystem, contact [email protected].          

When it comes to insurance verification, there are a few key things you need to know.

The process

First and foremost, insurance verification is the process of confirming that an individual has insurance coverage. This can be done through a variety of means, but typically involves contacting the insurance company directly.

There are a few different types of insurance that you may need to verify. The most common is health insurance, but you may also need to verify auto insurance, homeowners’ insurance, or renter’s insurance. Each type of insurance has its own process for verification, so it’s important to be familiar with the process for each type of insurance that you’re verifying.


One of the most important things to remember when verifying insurance is to get a Certificate of Insurance (COI). A COI is a document that verifies that an insurance policy exists and that it meets certain standards. Be sure to get a COI from the insurance company before you begin the verification process.

Without a COI, you may not be able to verify that the insurance policy exists or that it meets the required standards.

Other steps

There are a few other things to keep in mind when verifying insurance. First, you’ll need to make sure that you have the correct information for the individual you’re verifying. This includes their name, date of birth, social security number, and policy number.

You’ll also need to know the dates of coverage for the policy. These are typically listed on the COI. Finally, you’ll need to contact the insurance company directly to verify the policy.

In conclusion

The insurance verification process can seem daunting, but it’s important to remember a few key things. With the right preparation, you can make sure that you have the correct information and confirm that an individual has insurance coverage.

By getting a COI, you can also be sure that the policy meets the necessary standards. With a little bit of effort, you can make sure that your insurance verification process is a success.

In this blog post, we discussed insurance verification and what you need to know about it. We covered topics such as the different types of insurance you may need to verify and how to get a COI. We also discussed some key things to remember when verifying insurance. By following these tips, you can make sure that your insurance verification process is a success.

Why choose LenderDock?

LenderDock is the leading provider of online Property and Casualty Insurance policy verification and automated lien holder process management services. Through a lightweight integration, you can now couple specific policyholder data with LenderDock and instantly present third-party financial institutions with verifiable policy information in real-time.

Companies are moving to the cloud for speed and agility. But many find they are not moving fast enough to reap the promised benefits.

It’s an old story by now—the cloud is the computing of the future. What has become evident in recent years, however, is cloud has established itself as the computing of the present—and the agile IT architecture it has enabled is critical to any organization’s efforts to increase efficiency and business resilience. In other words, transitioning IT capabilities to the cloud is seen as an (if not the) critical success factor to realizing digital transformation goals. An MIT Technology Review Insights survey has found that while an overwhelming majority of technology decision-makers are using the cloud to operate with more speed and agility, many believe they are not moving fast enough to achieve those benefits. Here are the main findings: 

Companies are looking to the cloud for speed and agility. Nine out of 10 respondents say they are trying to move their infrastructure to the cloud to run as quickly and nimbly as their business objectives require. Two interdependent drivers—scaling up infrastructure quickly and increasing business agility and speed to market—were cited as the top cloud adoption drivers by respondents. In reimagining their customer engagement models, forward-thinking insurance executives have identified ecosystems as essential to future success.

Migration schedules are challenged by complex integration. While respondents want to use the cloud to enable more responsive operations, nearly half, or 47%, of surveyed executives believe their organizations are not moving to the cloud on schedule. Most of those have found migrating workloads, data, and operational processes more difficult than anticipated. Another layer of complexity: integrating a tangle of on-premises and cloud systems and cloud applications. Moving to the cloud, while offering a step-change in the cost and capability of IT resources, is not a simple process.

The bottom line is that insurers may need to become more digital, efficient, and agile if they are to find new revenue streams, boost customer engagement, achieve sustainable profitability, and generate higher returns on equity. Incremental enhancements in disparate parts of the business or traditional approaches to cost-cutting are not likely to work. In fact, for the top 10 auto insurers, expense ratios are at their lowest level in a decade – according to S&P Market Intelligence¹ -, suggesting that further cost-cutting won’t be enough to expand growth. Still, most insurers have been reluctant to invest in large-scale transformation, partly due to past change initiatives that failed to deliver the expected results.

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The approaches to modern architecture are diverse. There is tremendous diversity in the technology and tools that organizations are deploying to modernize their IT capabilities: roughly half of respondents indicate they are deploying application programming interfaces (APIs), containers, or serverless architecture. Microservices are also fairly widely used, and adopting multiple technologies is the norm—the average respondent indicates their organization is adopting or planning to adopt at least two technologies. Organizations are adopting multiple approaches to modernizing IT infrastructure because cloud migration requires a radical reorganization of infrastructure and development teams, processes, and resources. They need to be reworked into a continuous integration, architecture, and delivery process, through which new capabilities are constantly deployed, evaluated, and refined. 

Collaboration is an important part of the digitally transformed organization. With technical transformation comes operational and organizational change. More than three-quarters of the survey’s respondents believe that better cross-organizational collaboration is the greatest capability enabled by their digital transformation efforts.  

The inevitiabilty of cloud migrations

Moving workloads to the cloud has become common practice for organizations seeking to achieve enhanced performance and cost efficiencies. Only 8% of survey respondents indicate they have not yet begun to transition to the cloud. “The cloud is one of the major areas of modernization within IT infrastructure today,” says Ed Bednar, an associate director at the global consultancy Deloitte who leads the company’s cloud infrastructure efforts. Cloud computing lets any company do what previously only tech giants could do, he says. “It democratizes access to infrastructure—infrastructure that is highly scalable and secure—and allows service providers to operate their data centers and the infrastructure that they run wildly effectively, in terms of costs.”

Within insurance, ecosystem-based models typically enable interactions across the value chain by leveraging a differentiated infrastructure to allow for better service offerings, richer customer interactions, and higher rates of automation. Typically, insurers benefit from ecosystems via:


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Many legacy tools are really not meant for the type of cloud tools that are available.  So companies have to think about moving to a whole new type of infrastructure to enable fresh capabilities.  The answer for most is an API-based approach.  The benefits can be many including overcoming the need to constantly worry about business rules, security, and data collection processes.

In an API-based approach, the business rules, related data, and compliance requirements are embedded into the collaboration between teams and external partners enabled by the new architecture. 

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In little more than a decade, application programming interfaces (APIs) have transitioned from relative obscurity to become the “digital glue” that empowers developers to create new software applications, partnerships, and even new businesses. This business-to-developer (B2D) market is quickly becoming one of the fastest-growing opportunities within cloud computing.

An API is a specification (think of it as a contract) for how two pieces of software talk to each other and exchange data. Web 2.0 companies were the first to recognize APIs – historically used by developers to help teams work without stepping on each other’s toes – as products to be shared with (and sold to) customers and partners. In just a few short years, APIs have become a crucial channel, attracting customers with the ability to extend products, helping partners deliver the value they promised, and growing the ecosystem as a whole.

In today’s world, having a strong API strategy isn’t just good software practice; it’s a powerful business practice. Amazon has built a multibillion-dollar revenue business in Amazon Web Services (AWS), leveraging powerful API-based elements such as EC2. Google Maps would be a much smaller business if the only access was through its website directly. Twitter has opened up an entire class of businesses and analytical modules by sharing its data API and platform. Even – with over 800,000 developers and more than 2.5 million applications on the platform – proudly states that API calls drive more than 60 percent of total traffic to the site.

Empowering developers to build against your platform doesn’t just create value for partners; the API provider also wins by expanding the ecosystem, increasing retention, and driving up the value of the platform. Even more importantly, end customers win when all their products work seamlessly together. Take Box — its API-based integrations with popular applications like, Yammer, Jive, Netsuite, or even custom internal applications make it easy for end-users to work with their files wherever they need them. Similarly, DocuSign’s API lets customers design e-signatures right into their workflows. For example, when a rep closes an opportunity in Salesforce, DocuSign can grab all the right data and automatically send out a contract for signature.

Another example is Twilio, where over 200,000 developers have built applications on top of their API-based communications service offering. Opening up for the first time what used to be a completely cloistered world of telecom boxes and copper wires, Twilio gives developers an easy way to use all the communication services we have on our phones (SMS, voice, Shortcodes, etc.) in web and mobile applications. This enables a slew of new use cases, from the SMS alerts you get from Uber when your car is arriving at highly customized call centers for Home Depot and others.

The common thread here is to take something that’s difficult (or just plain annoying) to do and make it easy for the developer to use, at a reasonable price — much like software as a service (SaaS) companies do for the B2B world, and consumer electronics do for you and me.

Companies like these have shown the value of executing a strong API strategy, and we likewise encourage our SaaS and PaaS (platform as a service) companies to do the same. We’re also seeing more companies finding success with an API-first approach to the B2D market. Layer in the fact that developers are rapidly building a new marketplace of API-driven mobile apps projected to be worth $25 billion in 2015, and we’re at a key moment in time for the API economy.

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