6 Technology Trends That Will Define the Future of Car Insurance in 2019
We tell you how leveraging technologies like Big Data and Analysis helps to create custom products that suit individual needs and the customer does not pay a standardized premium but is charged fairly based on past history
Recent technology trends are changing the way that customers interact with a business. Traditionally, car insurance was dependent on the likes of an insurance agent, the claims team and a simple helpdesk. This is not the case anymore, today customers can make themselves familiar with insurance and what it offers. They can buy car insurance online, raise a claim at a click of a button and receive the payment in their bank account without ever stepping foot in the branch office of their insurer.
An intriguing aspect of the insurance industry is the technologies used by insurers for enhancing workflow. To provide insight, here is a small list of technologies that currently power and have the potential to enhance the car insurance industry in 2019.
Big data and Analysis
Insurance companies require large volumes of data to create innovative products and deliver on the needs of their customer base. This reliance on data and analysis will only grow in the near future to meet the ever-increasing and aggressive competition, where sustenance is not the only thing a car insurance company needs to worry about.
Big data and analysis will be the key to creating better products and useful services that will help insurers to remain in the top game. As far as claims are concerned, a case can be automatically adjudicated and settled depending on the magnitude of loss. Also, with increasing volumes and velocity of data being generated, the need for data scientists will also be eminent in the new year.
With motor insurance companies actively entering the online "space," one of the most nagging issues they face is creating a strong and secure environment for the collected data. A customer is willing to share sensitive information which has great potential of getting exploited and can lead to dire consequences. This is the unfortunate flip side of living in the age of the internet. Having said that, it is possible to guard the vulnerable data with multiple layers of security via advanced technology. In 2019, sensitive information will be protected with the help of cyber security software in an efficient manner.
IoT and Telematics Insurance
IoT (Internet of Things) is probably the most useful technology ever created. What began in 1982 with a simple vending machine that updated the inventory with whether enough Coke bottles are available, has now found a way in modern households.
This technology works with the help of IPv6 (Internet Protocol version 6) where an IP address is assigned to each object for communicating data. Pair this with Telematics, that is the technology of sending, receiving and storing information using telecommunication devices, and a smart InsurTech product is born. Car insurance companies might take a leap of faith and embrace the power of IoT and Telematics for creating avant-garde insurance products in the near future.
Automation of Claim Processing
Insurance works on the principle of delayed gratification in the form of claims. Customers expect a financial backup in case of an unfortunate event and if a genuine claim is not processed within the expected timeframe, customer satisfaction is jeopardized.
One of the solutions is to reduce human intervention by introducing automation in the claim process. With the help of machine learning, a system can parse historic data. Each claim process provides an insight into the better processing of the next one. All this by adhering to regulatory compliance. In this manner, the processing of a minor claim can potentially be completed without the involvement of any manpower. As a result, the claim process can be both -- time saving and cost-efficient.
we tell you how leveraging technologies like Big Data and Analysis helps to create custom products that suit individual needs and the customer does not pay a standardized premium but is charged fairly based on past history
Artificial Intelligence and Chatbots
Many times customers fail to realize that when they click on "chat with an agent" on a car insurance portal, they are actually interacting with a software program -- a chatbot. These chatbots are powered by Artificial Intelligence. They have the ability to understand user query and solve it to present the most accurate answer.
A chatbot also helps in filtering simple and complex questions. This software has brought cost efficiency to the insurance industry. Do they reduce the time and money spent on engaging a customer relationship manager for solving basic queries like what is covered under a comprehensive car insurance policy? Artificial Intelligence (AI) helps this software become more and more efficient with each interaction.