The insurance industry stands at a crossroads.
The digital revolution has delivered technologies that can deliver dramatic business improvements for insurance companies – if they are bold enough to take advantage of them.
So here are a few ways that some of the most innovative enterprises & rapid startups are transforming the way they operate.
6 technology opportunities for insurance firms
1. Big data analytics
By collecting data on their users, forward-thinking insurance companies have been able to customise their service to each customer.
In recent years, ‘Executives at large and small carriers alike have been building centers of excellence (COEs), with dedicated staff focused on advanced analytics,’ according to McKinsey’s report .
2. The internet of things
But where does the IoT data come from?
In car insurance, black box insurance has become a category allowing insurance customers to install a telematics device that measures their driving safety and calibrates their quote accordingly.
Additionally, some big data services can tap straight into the products consumers already use because they rely on the internet to function.
Tools such as Fitsense allow life and health insurers to personalise their insurance offers to individuals based on the readings from their fitness trackers.
3. The cloud
The cloud is a catch-all term for a huge variety of business services. Moving their infrastructure , including high-performance computing and modelling , to the cloud allows insurance companies to update and streamline their infrastructure.
This improves the efficiency of their employees and saves money.
4. Machine learning
As machine learning tools have improved, so they have become more applicable to the insurance industry. These tools tap into big data pools and help make data analytics more effective. This could provide huge benefits to firms in meeting compliance needs, reducing costs and staying competitive.
5. Marketing automation
The rise of cheap marketing technologies and social media have made it easier for insurance firms of any size to promote themselves and compete with the market leaders.
65% of traditional European insurers plan to professionalise their online marketing (e.g. purchase of keywords) and 45% aim to improve their social media presence according to McKinsey’s research .
This tool is far more than just a Bitcoin technology, it’s said to be a technology that will make far-reaching changes to the worldwide economy over the next decade.
‘Blockchain technologies can help the wholesale insurance sector fulfil its role in underpinning the global economy more effectively,’
– according to PwC .