Tech Innovation

Technology Adoption Trends in Insurance

The future might be difficult to anticipate, yet need not be difficult to get ready for. Back up plans are wrestling with thetough new business, speculation and administrative conditions that are rising up out of the monetary crisis.The industry, notwithstanding, likewise faces far more extensive difficulties. Segment moves, the ascent in force of theemerging markets and changing client conduct will all assist with molding the area’s more extended term future.

Computerized innovation is a worldwide megatrend which is changing different enterprises that incorporates the protection area. Protection area has been a piece delayed to IT reception because of quick changes in innovation and on the grounds that their dissemination channels are as yet moderate, i.e., dealt with by specialists and representatives and were as a matter of fact not prepared to embrace new innovation. Nonetheless, advanced innovations reception by clients that incorporate web-based entertainment, PDAs, electronic exchanges, and so on, empowered by cloud administration models, internet business and portability are having an effect on the specialized and business capacities for the vast majority insurance agency. Safety net providers rush to gain by this pattern.

Data analytics and big data

The ability to capture real time data, big data and analytics play an important role for insurers in terms of potential customers. The recent trend is the adoption of sensor technologies named telematics used to monitor driving behaviors of the individual. These technologies help insurance companies to provide usage-based insurance policies.

Information plays an important role in the insurance sector in terms of product pricing, development, risk management, claim processing and fraud detection. These functions can be executed by collecting data from multiple sources and by using software tools to obtain meaningful insights from data. In order to effectively implement insurance operations, insurance sector needs to adopt IT systems, new technologies and networks to capture real time data and bolster their data storage capacity for analysis in order to capitalize more customers.

Real time architectures for agility

Real time data sources are mobile technologies and social media which can be leveraged by insurance companies to become more competitive. Capturing real time data from online channels is proving a gold mine for insurance companies because they provide insights on customer behavior based on which insurance products are strategized. Insurance companies are deploying data analytics tools, BI platforms and data visualization tools to derive full benefits of real time data.

Focus on SaaS solutions

Insurance companies are deploying applications by adopting SaaS solutions because it offers superior infrastructure, high levels of security and low risk. Insurance companies have the advantage of access to latest infrastructure and IT platforms at low cost. SaaS offers a perfect solution for insurance to improve their efficiency at minimal capital costs.

Social media analysis

Insurers are turning to social media as a marketing medium and a platform for collaboration. Social media is widely used for networking with friends and business partners. The usage of social media is made easy by smart phones and mobile devices. Insurers are able to target new customers based on their life events and also use social media networks to communicate with internal and external stakeholders.

Choosing programs and systems with customers in mind

A Forrester-Accenture report recently dubbed this year the “age of the customer,” where the customer experience is at the heart of the digital movement. This means that technologies and new digital processes can’t be implemented with an administration-first mind set.

Take for example, something as simple as a digital application. While some technology may truly require three different phone numbers or two different emails from the client, how convenient is that for the customer filling out the application? Today’s customers expect a seamless, intelligent process from insurance businesses. While this may signal some disruption to internal processes for the agent, the end result must be to make programs easier to use for the customer, not merely just the IT team.

Automating business processes where necessary.

The key to moving toward a more digital environment and improving customer service is to automate workflows where necessary. With the excessive use of social media on the rise, and on multiple channels, customers expect ultimate interaction and personalization from their insurance agents and brokers.

While standard face-to-face interaction may be less common between insurance entities and their clients, relationships are still just as important, if not more important than in the past. As such, insurance agents need more time to interact with their customers and less time sorting papers, scrolling through documents and staying on top of processing claims.

Embracing a cloud-based and on-premise infrastructure

Just two years ago, 84% of companies were operating in the cloud and more than half of these companies reported that the cloud reduced the amount of work from IT teams, says PC World. Still, IT teams in the insurance sector struggled with what information is allowed by regulators to be stored via cloud vs. on-premise. To add to this, the proliferation of legacy technology is challenging the cloud-based-only approach. Many insurance entities are running off 40-year old administration technology designed to manage the claims process, says a recentTrustMarque report. This kind of technology is hindering innovation, but insurance agents are far from instantaneously replacing such mainframe technology.

This year, as the insurance sector adopts a more streamlined workflow, we can expect a significant increase in the use of technology that can be operated via hybrid cloud and on-premise, ensuring ultimate flexibility for customers and clients and strong adherence to the ever-changing government regulations within the insurance environment.

Key business drivers for IT adoption in insurance:

Engaging customers using multi-channels of customer interaction and include all age segments
Devise strategies to include the growing investments in internet and mobile channel strategies for faster and instant communication
Collaborate with partners to launch innovative products in areas such as micro-finance, wealth management, etc.
Automate underwriting processes using data analytics and business intelligence (BI) and predict real time fraud analysis, risk analysis
Leverage Bancassurance banking systems and regulations available in each country to explore cross-selling of insurance products, particularly in emerging markets like India
While 63% of insurance businesses report that they are ready to move towards more digital practices, only 23% of these businesses are ready, reports a joint Forrester and Accenture study. To accelerate this process and ensure successful transition to digital workflows, there are a few key areas we can expect insurers to embrace as they seek to create more automated, user-friendly processes.

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