The changing market dynamics, increased pace of innovation, changing customer behavior, new competition, etc. are revolutionizing the insurance industry in 2020.
As insurance firms adapt to maturing markets and economic turbulence, in the long run, their ability to integrate technology, talent, and business-model innovation into legacy environments may be the key to success.
Artificial intelligence (AI), digitization, new sales platforms, alternative product development, outsourcing, and other innovations help insurers to bolster core systems, add capabilities, and enhance the customer experience.
Insurance agencies that are ready to implement a complete digital transformation, such as, utilizing a robust agency management system, advanced insurance claims processing system, adopting cloud computing, offering self-service platforms to customers, managing staff through technology (smartphone apps, online portals), and connecting with partner insurers directly from the management software, are likely to gain 158% higher revenue, that also per employee.
This indicates that smartly investing in technology with having the right technology partner is well worth the effort put and the money spent.
For greater understanding, we have assembled advice and suggestions from insurance experts about the 2020 revolution, which are written below.
1 ) Melanie Musson–Auto Insurance Specialist at Expert Insurance Reviews
As we’re seeing more and more autonomous features on vehicles, the major insurance companies are going to have to take note and reward customers for the increased safety and reduced accident risk these features provide. If they don’t, we’re going to see a major increase in insurance companies that cater specifically to autonomous vehicles.
For example, they started offering their own insurance for their vehicle owners. It’s only available in California, but it’s going to branch out into other states soon. They claim that their coverage will save customers 20-30 percent. Autonomous vehicles will be the cause of the single biggest shift in car insurance since the first car insurance policy was sold over 100 years ago.
Melanie Musson is an auto insurance specialist at ExpertInsuranceReviews.com
2) Scott W Johnson-Manager & Chief Executive Marindependent Insurance Services LLC
The insurance industry is due for some big changes in the next decade, one of the biggest is how will insurers real to climate change. Almost everyone you speak with believes in it, but few prepare for it; however, insurers are faced with it. One way in which we have all seen it is in the California wildfires. Yes, we have always had forest fires, but not like this, not year after year. And a forest fire able to cross a major highway (101) system? Insurers will need to react. I think property insurers more than likely will begin by having a separate deductible for the peril of forest fire. Say 10%. This deductible would fall into line with how earthquake insurance is done, and given the fact that Forest Fire can now be considered a tier 1 catastrophe, it only makes sense.
3) Mike de Waal -President and Founder of Ottawa-based Global IQX
The future is bright because insurers are becoming radically more efficient through technology.
Automating risk management, rating, quoting, and renewals, integrating massive disparate legacy systems, and redefining age-old business models – essentially all at once – is no small task. But it offers progressive insurers great opportunities to vault past the competition.
It seems as if almost overnight emerging insurance technologies have flooded the market under the rubric of insurtech. Of course, this isn’t quite how it happened. This shift in insurance, evolving over decades, has seen a rush largely due to the emergence of agile disruptors recognizing the need for digitization and automation in a market previously slow to change.
The innovations have been fast and furious, but according to a recent Celent report, Life Insurance CIO: Pressures and Priorities 2017, insurance IT departments are still relatively slow to make innovation a top priority.
Only 14 percent of carriers pursuing innovation say it will have a significant impact on IT spending. Some 71 percent report a moderate impact, and 14 percent say none at all.
Data is the foundation of insurance, and two emerging technologies, the Internet of Things (IoT), and artificial intelligence (AI) are making that foundation more useful than ever. IoT allows Internet-connected devices to send and receive real-time data. Insurers are increasingly using IoT data to streamline operations, improve customer engagement, offer discounts for and incentivize healthy behavior such as safe driving and regular exercise, calculate risks more accurately, boost competitive advantage, and streamline compliance.
And that’s just the beginning. Connected devices will be increasingly valuable for other activities, including loss control, pricing, underwriting, and marketing.
IoT produces a flood of big data that would be unmanageable without AI to organize it and extract what’s valuable. Using IoT and AI together can benefit not only insurers but brokers, employers, employees, and consumers too. Some IoT software vendors now offer built-in AI capabilities, such as machine-learning-based analytics. AI and analytics can find the needles of insight in the haystack of data and learn from them to identify patterns and trends that might otherwise be undetectable.
4 )Lev Barinskiy -CEO of Smart Financial
Consumers are looking for more options when shopping for insurance. In the next few years, even more people will be looking to get insurance quotes online. Insurance technology companies have already disrupted the insurance industry with their ability to generate quotes this way. Soon, agencies and carriers will rely even more heavily on purchasing high-intent, user-generated leads. Not all lead generation companies are the same, however. Agents and carriers should look to partner with a company that has fair pricing and generous return policy.
5) Jason Fisher–Founder and Owner, Best Life Rates
The largest movement for consumers getting coverage is highly correlated to the convenience of obtaining it, we’ve found. The fewer barriers to entry, the better. In the life insurance world, there’s a huge* propensity to paying more* as long as a person can get coverage quicker, easier, and without having to take blood tests or complete exams.
The insurance industry is being heavily disrupted by changes in consumer behavior, the rise of fintech, and other trending technologies. Besides, Insuretech startups are continually redefining, or we should better say enhancing the customer experience through innovations such as insurance quotes on fingertips, risk-free underwriting, quick purchasing options, easier activations, faster claims processing, etc. Discover new business thoughts and become one of the industry leaders that are revolutionizing strategies, leadership, and innovations.
Author Bio: Mika Edward is an insurance industry expert & writer at Cogneesol. She is excellent at writing about insurance industry technology & trends. She has helped numerous insurance agencies with efficient insurance back office solution and in devising strategies for business growth and profitability through her blogs and other writing materials.