Throughout the property and casualty (P&C) insurance industry, new technology is impacting trends and the future of the market. Technology is disrupting current workflows and creating new avenues for consumers to engage with businesses, acquire quotes, and submit claims.
In addition, Millennials, also known as the tech generation, are driving technological changes in the market. Not only are they becoming a majority in the workplace, they are also growing in numbers within the consumer market. Millennials' understanding of technology and increasing reliance on devices is requiring businesses to invest in technological development and employees to grow in understanding and skill.
Top insurance producers need to be prepared for increased uses of technology in the workplace, and they need to have an understanding of how new technologies are changing the consumer interface if they want to continue to succeed. As your book of business and agency grows, stay on top of the following technology trends impacting the industry:
Artificial Intelligence
Artificial intelligence (AI) refers to using computer systems to perform tasks previously requiring human understanding. Although this type of technology has been around for a number of years, recent advances have propelled its growth in use and accuracy. PwC’s Top Insurance Industry Issues in 2016 noted, “AI’s initial impact primarily relates to improving efficiencies and automating existing customer-facing, underwriting and claims processes. Over time, its impact will be more profound; it will identify, assess, and underwrite emerging risks and identify new revenue sources.”
Data Analytics
As you already know, insurance is a data-driven industry. Data comes from both the consumer, as well as third-party providers that are used to verify a claimant’s information, assess fraud risk, and pre-populate online consumer quotes. We concur with Vertafore’s comments in 7 Trends Transforming the Insurance Industry, stating that “external data sources provide immediate access to quality, comprehensive data that can improve underwriting outcomes and create efficiencies for the consumer, agent, and insurer.” Once an agency has the data it needs, it can develop actionable analytics that allows it to respond more quickly and to develop more personalized policies, which creates a better experience for the consumer.
Telematics
Telematics provides information on customers' riskiness by monitoring their automobile speed, acceleration, and driving patterns to determine whether they typically exhibit low-risk or high-risk behaviors, explains Deloitte in The Fusion of Business and IT: An Insurance Industry Perspective. The telematics device sends the information to the insurer as well as provides a summary of the evaluation to the consumer. This technology will allow more granular pricing segmentation based on the safety of the driver.
Technologies, such as artificial intelligence, data analytics, and telematics are redefining the insurance industry. The impact ranges from customer expectations to pricing, and as a producer, you need to be knowledgeable about these technologies as they continue to grow and shape the industry.
Read a recent piece by Danny Anderson and Bruce Bertheleson on the 7 Key Trends Producers Should Watch to Keep from Being Left Behind to learn more about current insurance industry trends.
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