The insurance industry buzz foreshadowed a disruption of digital innovation
Just a few years ago, the insurance industry buzz foreshadowed a disruption of digital innovation. Traditional companies like Captive Insurance had a choice to either stay in motion with the changes or get left behind.
Fortunately, most companies chose the former. The concern that innovation would disrupt operational flow is alleviated. Now, insurers are ready to take advantage of the latest technology trends that will support the business and customer.
For starters, safe drivers with low mile on their vehicles are seeing lower premiums since the advent of telematics programs. Sensors and dashcams are simplifying the frequency of processing claims. More insurance companies are partnering with drone companies to assess roof damage.
Here are a few more technological improvements that will keep the industry moving forward.
Increased Use of Gamification
Behavioral science and social networking have joined the insurance industry by way of gamification. By introducing elements of teamwork and competition, the goal is to encourage desired behavior in agents.
Essentially, this takes on many forms such as introducing a point system to incentivize agents to sell newer products. Another attraction for using this technology is improving agent engagement. Rather than the standard product education materials, agents can use interactive digital games.
Improved Customer Experience
Modern customers include Millennials and anyone who prefers to receive advanced services from their insurance company. Therefore, more insurers offer a mobile option for insurance services. Customers can locate agents, request a policy quote or even calculate retirement income.
The insurance company that fails to recognize the importance of mobile technology will not last survive in an industry that is catering to customers who expect on-the-go services. It is a matter of staying competitive by evolving with digital formats.
Streamlined Processes for Data
Insurance is a data-driven industry that uses structured and unstructured forms of information. Customer behavior continues to be a driving force in tailoring insurance services. Internet of Things, commonly known as IoT, and Big Data are two resourceful tools.
Where IoT accumulates data regarding behavior, Big Data analyzes the information so insurers can make crucial decisions. An example of this is health devices worn by customers to monitor their activities. Insurers can offer discounts for healthy activities.
The insurance industry can benefit from these trends while managing the uncertainty of introducing new technology. Beginning with a small group of policyholders, insurance companies can gauge the benefit and identify possible issues to justify making further investments for a broader rollout.