Technology has taken over almost every industry in the marketplace and now it’s moving on to insurance. The insurance field is riddled with complexities and multi-step processes to ensure agents and brokers follow all of the laws regarding the type of insurance they sell. This can lead to lengthy wait times when people are trying to secure a policy, long underwriting procedures and a general hassle for the customer, which often loses professionals their sales.
With the help of automation and strategic tech, however, the insurance industry is being transformed. In this article, we’ll look at five different technologies that are shaping how insurance providers will do business in the future.
1. Internal Automation
There’s a lot of fact-checking and I-dotting when it comes to reviewing and approving insurance applications. When this is left to humans, it’s time-consuming and offers many opportunities for mistakes to be made. To alleviate this exposure to risk, many insurance companies are now opting to automate their internal processes.
Using insurtech such as robotic processing automation and machine learning, these major companies are outsourcing the tiny details to artificial intelligence. This not only speeds up the process, it also frees up their labor budget to hire more agents and salespeople so they can boost their bottom line to make up for the cost of technology.
2. Digitization
Another step many insurance providers are taking is digitizing records. They’re now accepting online or e-applications instead of paper to make it easier to file and organize their records internally. Plus, this makes it easier to keep track of where a person is in the process and reminds them if they need complete a certain part of their insurance application.
Federal regulations still state that paper copies must be retained for at least five years, but agents and providers can do this after the fact. Once a policy is approved and issued, they can print out the entire packet and store it in their physical records.
3. Automate Claims Processing
You’d be surprised what AI software can do these days, and the insurance industry is taking full advantage of its capabilities. One of their newest uses of technologies is employing machine learning methods to automate claims processing. Instead of claims handlers agonizing over the details of your claim, a computer can review your statements and the facts of the case and reach a decision.
This has been instrumental in streamlining claims settlements and speeding up the process for customers. Providers can program their AI to consider certain parameters and specifications before making a decision to ensure they’re making the right call for both the company and the customer.
4. Streamlining Claims Management
Another major pain point for the insurance industry is managing claims. This requires frequent communication with multiple parties, usually involving a hospital or doctor’s office. That’s a lot of ducks to keep in a row.
Using software and systems that help to automate parts of this process and autofill information received helps provide claims managers with the information they need to do their job. It reduces the amount of time spent waiting to hear back from a third party and helps the insurance company quote and grant benefits faster.
5. Personalized Pricing
More and more companies are starting to utilize the internet of things (IoT) and social media to create highly personalized quotes and rates for their customers. Think of the Progressive Snapshot tool, which tracks driving habits and creates a custom rate based on your individual probability of a claim.
This tech solution benefits both parties. The insurance company gets more data about you as a policyholder and your exposure to risk, and you get lower rates for being a safe bet. This is why this particular piece of insurance tech is exciting to both parties.
Insurance is getting more high-tech by the minute. These are just a handful of technologies your insurance provider is using to make your experience better.
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