Day by day Insurance industry is becoming technologically advanced just like every other industry. The transformation of insurance is just like a Sloth bear, extremely slow. Insurance Innovators face a number of challenges which is causing a delay in their development. Hence the insurance industries are coming up with many trends to face these challenges and to cope up with the loss. There is a wide range of digital, cultural and economic development in the field of Insurance Industry after countering various issues and challenges. The challenges range from AI and blockchain to gig work and their possible impact on the Insurance Industry.
Fresh Face of Car Insurance
While adapting to changing cultural approaches to personal transportation Car insurance providers also continue to change their traditional car insurance providing approach. Car-poolers have demanded a hybrid of personal and commercial insurance policies. The liability has been spilt between the drivers and the manufactures. Also, the subscription economy has presented a substitute for vehicle renting and ownership. There will be a need for car insurance, as long as people are travelling by cars. However, the increase in various price structures, expanded policies structures, technologies for a new vehicle, and erasing the line between the carmakers, insurers, and policy holders make the business flexible and can create a competitive advantage in this industry.
Insurance companies are adapting to digital methods. Not only for savings and efficiency but also for increasing customer satisfaction also in amid of pandemic it is very necessary for the companies to be preventive. Hence the adoption of the digital method is a very important trend for the nationwide insurance industry as most of the people prefer hassle-free and quick services from the insurance industries. Nationwide Insurance companies are adopting API or microservices to keep up with these trends by keeping the customer as the center of these developments.
To make every process efficient Insurance Industries are adopting Artificial Intelligence. AI and machine learning have the ability to influence every aspect of the way the Insurance Industries run. AI comes with specialized functions that can lead to the prevention of fraud, laundering of anti-money, etc. The Data collection and pricing comes in very handy when switched to AI. AI is not completely matured right now, it still needs a human touch to help it work. But if progressive insurance industries fail to adapt AI trend, they will surely find themselves left behind.
Blockchain provides an unaltered creation of a digital ledger. This technology enables to reduce the admin cost and that comes with reviewing claims and checking payments which are made by the third parties. To ensure that all of this information shared, is protected from fraud and to ease the verification process nationwide insurance companies can adopt Blockchain. In addition, blockchains can be easily distributed widely without any risk of duplication. Blockchain also enables increased transparency and improved flow of work.
Human Intellectual Capital
To shape the future of the insurance industry this trend proves to be one of the best. Being aware of this and implementing it, is a whole new thing. This requires talented and skilled staff. Without trained or talented staff it is quite impossible, to implement Human Intellectual Capital. But once successfully implemented, the progressive insurance Industries can attain great heights as it is most important in an insurance company that the employees are highly intellectual to provide the policy holders the best service.
Car insurance policies are affected by telematics abilities. It is a wearable technology for your car. There are various benefits of Telematics like it encourages better driving habits, it lowers the claims costs for the insurers. It measures various indicators such as data on speed, location, accidents etc. Telematics collects all the data from these specialized data collectors and processes it through analytics software and then avails you the best policy for your car.
To predict customer behavior, insurers use the predictive analysis which helps the insurers to collect data of the customers. To improve the accuracy of data new ways can be utilized as well. However in the recent year’s predictive analysis was used for identifying risk of fraud and customers at the risk of cancellation, pricing and risk selection and anticipating various trends to move in a forward direction.
Social media data
Marketing methods are evolving in order to cope up with the new generation. Social media plays a very important role in this generation. Hence various insurance industries, like industries are gearing themselves up making clever advertisements so that their insurance gains more attention. Insurance Industries are also using social media data in order to attract the customers. Also social media data helps better interaction between insurers and the customer. Social Media Data can avail an increase in number of customers.
Insurance companies are really taking it a level higher. Literally they are taking it to the sky. They will play an important role in the field of various insurance industries. Drones can be used across many stages of lifecycle like aiding preventive maintenance and access the damage following a loss. Farmers insurance can be an excellent example for the scope of including drone in insurance industries.
Designing of medical apps by insurance companies acquires instant services for the policy holders. This can help the health insurance industries to provide instant services and make it efficient in this time of the pandemic. Medical apps serve as a major resource for policy holders, as they can find it very easy to use. Health insurance companies can teach to great heights if they include medical apps in their policies.
The trends of insurance companies are reaching new heights in 2020 and attaining great heights to provide the best services. These trends will continue to shape the scenery of insurance in 2020. Trends in the Insurance Industry are bringing about a change slowly, and are taking the Industry towards Progressive Insurance Industry while facing the ongoing struggles during this pandemic.