Technology driven Insurance Industry

Ms.Vidhya, Professor, SIMS

Technology has become an integral part in development of any industry. Recent innovations in the market place with digital interactions are helping the insurance industry to transform to technological driven Industry. Technology related changes are happening in almost all industries in a faster pace and every company wants to be smart in its operations. As a fact we should know that the human being’s life is surrounded by full of risk and it is the insurance industry that plays a saviour role to mitigate this risk.

The Competition in the Insurance industry is growing in a high degree pace where companies innovate new technologies to deal with the claims and settlements. And these days consumers are also well informed and had become demanding also. In order to meet the market demands the insurance industry  should adapt and implement the recent technology and redefine the way of operations.

The recent trends in insurance industry makes the consumers to deal with their claims and settlements in better and easy way.  Some of the trends happening in the industry are:

1. Machine learning: To stick to the market the insurance companies focuses on marketing and issuing policies more effectively and efficiently. Now Insurance companies have started to explore and redesign with the help of technology so that Insured can get hassle free solutions for their problems like claim submission, underwriting and reimbursement. Though these kinds of solutions are existing in past years, the automation on claim inspection, verification and settlement are new areas where insurers try to explore to get things done.
2. Data Analytics: There are number of data’s available for insurers in India. The collection of data starts right from the acquisition of policy by customers after that it builds with policy claims and ends with the final claim settlement. In recent years the data is acquired with the help of technology.  The customers who acquire health fitness device, telematics and social media are the source of information for the insurance companies.

Making use of motor insurance sector the insurer finds out the possible future customer by checking the drivers driving behaviour. This will be compared with the existing driver customer data.

3. Artificial Intelligence

AI is the emerging concept in all the fields and nowhere it spares the Insurance industry also. AI has just started to peep into the Insurance industry where the data of Insurer and the Insured are been accessed. Many faces of AI like text analytics, audio and video analysis, robotic process automation and digital claims underwriting will make a specific difference in the field of Insurance. AI is combined with core activities of Insurance like claims processing to improve the efficiency of the process.

4. Block chain technology

Block chain technology is the powerful technology that makes a trend in the Insurance industry. In this technology the system fabricates the fraudulent claims and approvals. The transaction that happens through block chain technology is transparent and secure. This technology reduces double booking, fraudulent claims, contract alterations and so on.

5. Internet of things

Another technology that is encompassing the insurance industry is IOT. Combining IOT with insurance leads to combine of insurance sector with consumers and their particular risks. IOT benefits the insurance industry by providing large inflow of consumer data by which the industry can define the rates and start new schemes. IOT helps to identify the best drivers  by fixing the price of premiums in profit range.