Technology is taking over the insurance industry. For the past five years, the search volume of the term “InsurTech” skyrocketed, and more than three million results can be found on Google today. Generally, InsurTech refers to technological innovations that are created and implemented to improve the efficiency of the insurance industry. In a bigger sense, InsurTech refers to an ecosystem that combines related businesses to offer insurers and their clients a more valuable service. Agriculture, healthcare, cybersecurity, the sharing economy, asset management, transportation, and other adjacent industries are particularly relevant. This article will briefly introduce how trends in tech are and/or has been shaping the insurance industry.
McKinsey & Company has concluded some trends that prominently impact insurance.
Applied AI – Reengineering core processes
Carriers will be able to more fundamentally reengineer core operations to be more predictive, as AI spreads and algorithm development gets commoditized. As key business operations become AI-enabled, distribution, underwriting, claims, and service will be disrupted. This will result in a "person in the loop" paradigm that boosts productivity and enables higher-quality customer touchpoints.
Distributed infrastructure - Cloud as great aide
Insurers around the world are saddled with huge technical debt, and many core processes are dragged down by extensive on-premise legacy technology: outdated computing software or hardware that is still in use. As cloud computing matures, rapid migration of all core systems will help insurers be more agile in launching new products and creating better customer service. As ecosystems continue to grow globally, cloud-native insurers will be best positioned to act as ecosystem orchestrators—acting as connecting hubs between customers, distributors, insurtechs, healthcare providers, carriers, reinsurers, and more.
Future of Connectivity - Speed up in data-sharing
In many markets, insurers have begun using telematics to develop core automotive products. Widespread adoption of IoT (Internet of Things) could lead to similar product reshaping in life, health, property, and business. Increasing the frequency and specificity of data sharing through IoT devices helps customers more accurately understand their needs and helps insurers better understand risk, both at the time of purchase and on an ongoing basis. The growing availability of 5G enables this data to be shared with lower latency and helps insurers provide real-time services to customers.
Here at Sedna, we are ready to embrace changes in the future of the insurance industry. With over 15 years in consulting, we have extensive knowledge of Casualty, Property, Workmen Compensation, Litigation, and Compliance, etc. We also have a track record of success with Health insurance jobs that need a specific understanding of HIPAA, eligibility, and claims processing.
Sources:
https://www.pwc.com/us/en/industries/financial-services/library/insurtech-innovation.html