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.
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.
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
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
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.
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
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
API economy’s growth
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.
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.
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.
increase of “headless technology”
slightly off-putting name, “headless tech”, or headless architecture,
has been around for a while and is completely harmless.
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.
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.
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.
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
ever-rising hybrid cloud architecture
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.
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.
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
customer data surge
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.
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.
customer experience is unrivaled, taking precedence over all else.
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.
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.
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.
Delivering customized digital products
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
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.
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.
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.
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.
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.
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.
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.
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
next post, we will discuss Part Two of insurance trends to be on lookout for in