According to a report published by PWC (PricewaterhouseCoopers), it is assumed that the number of the middle class population will increase to 1.2 billion by 2030, which means a greater demand for life and health insurance policies. In addition, an Allianz report shows that the global insurance penetration rate is expected to increase by 5.8 percent over the next 10 years.
But here’s the turn: this time frame will also bring a lot of potentially damaging changes to the insurance industry. In addition to this, the number of consumers with knowledge of the Internet will also increase from 1,800 million today to around 5,000 million by 2020. This new Internet-savvy generation will naturally expect, as well as demand, transparency, uninterrupted accessibility and rapid response. of health insurance companies.
Read on to learn more about 5 innovative technology trends that will make a positive impact on the insurance industry.
Gamification is the hot topic these days because of its tremendous potential to attract more and more customers. It is a fashion choice among the younger crowd who are tech savvy. This is the reason why a considerable number of life and health insurance companies have begun to use gamification techniques around the world to familiarize people with the complex operation of health insurance policies.
AXA Group is one of those insurance companies. He introduced his CrazyCash game in Indonesia to educate the masses about the structure of work and the benefits of insurance products that the country has a very low level of understanding (approximately 2 percent). The game became an instant hit among players with more than 200,000 tweets for AXA. Within 5 weeks of its launch, CrazyCash was able to obtain more than 225,000 page views for the company’s official website.
In considering this, we believe that a considerable number of life insurance companies will use this method to attract more customers. The gamification process will not only make customers understand more about life insurance, but it will also create brand awareness while convincing people to buy life insurance plans to avoid risks.
2. Wearable technology
Although portable technology is not new to the market, the life insurance industry is still taking time to realize the full potential of this trend technology. Industry experts believe that the portable technology market will grow substantially at a CAGR (compound annual growth rate) of 15.5% to reach 51.6 billion dollars by 2022.
In 2017, some top names in the insurance industry, such as State Farm Insurance, have taken advantage of the use of portable technology along with sensor-based technology to accurately generate measurable customer data to arrive at a precise risk underwriting. .
Since, almost 63 percent of insurance professionals have already placed their faith in wearable and sensor-based technology, which implies that, soon, it will become a norm. This finding is significantly encouraging many life insurance companies to welcome portable technology to gain an advantage over their contemporaries.
3. Chatbot technology
In 2017, Chatbot technology emerged as one of the most coveted technologies among life insurance companies. A report published by Capgemini-Efma reveals that 75% of life insurance providers plan to invest in Chatbot technology in the next 3 years.
Policybazaar.com, an Indian insurance aggregator website, is one of those companies that have already implemented the use of Chatbot to identify the risk exposure involved in the case of an applicant. This technology has helped the company increase its overall auto insurance sales by 40%.
It is safe to say that the demand for Chatbot technology will only increase over time. In fact, their demand is supposed to be 5 times higher compared to the previous year. New generation customers expect support without interruptions and shorter waiting times, which increases the demand for Chatbot technology.
4. RPA (Robotic Process Automation)
Undoubtedly, RPA was the winning technology trend last year and will continue to redefine the insurance administration process. There is a strong increase in demand in the life insurance sector around the world, as it is better for the underwriting process, policy administration and claims settlement.
At the beginning of 2018, a Japanese insurance company, Fukoko Mutual Life Insurance, incorporated the RPA system to calculate the payments of its insured. It will not be long before other life insurance companies also start installing RPA on their systems to increase productivity, detect fraud and expedite the claims resolution process.
5. Blockchain technology would become a new standard
In the future, Blockchain technology will become a new standard, since it has made the operational efficiency of life insurance companies significantly easier by increasing the transparency of the system. At the same time, it also ensures an uninterrupted data transfer between the interested parties.
Blockchain Technology’s technology solutions not only help make the claim process easier and more accessible (for example, by using direct entries from death records) but also help to reduce the operating expenses of a life insurance company through the automation of back-office transactions.
No wonder, life insurance companies are already flocking to this latest technological trend to explore their potential. Different insurers such as the AXA group, Nationwide Insurance and Penn Mutual have joined with Blockchain’s advisory board to explore and install solutions based on Blockchain technology in the future.
I hope you like this article and have learned something new. Click Like, comment and share our articles if you really appreciate my work.
If you have any questions about this article, do not hesitate to ask me in the comments box below