5 Interesting Ways Insurance Companies Are Utilizing Technology

Many insurance companies are working on moving further into digital spaces to market, interact with policyholders and provide assistance to customers. Doing so requires the use of many different types of technology and tools. Here are five interesting ways insurance companies are utilizing technology.

1. Artificial Intelligence Can Help Drive Digital Innovation

Artificial Intelligence (AI) is one popular type of insurtech that is being used to help drive digital innovation across the insurance industry. Insurance companies are able to leverage AI in a variety of ways, including powering chatbots to assist customers and automating various tasks and workflows, such as generating insurance quotes. When an insurance company leverages AI, it is able to increase the pace and success of its digital innovation and make it easier to uplevel and upscale its computing infrastructure more quickly and efficiently.

2. Robotic Process Automation Can Increase Accuracy And Efficiency

Many industries are turning toward new methods of automation, AI among them. Another popular type of automation is Robotic Process Automation, or RPA. In other types of industries, RPA can involve sturdy robots performing dangerous tasks on a factory floor, making it a safer environment for human employees. In the insurance industry, however, RPA more often takes the form of powerful computer programs designed to automate workflows and rote tasks, such as document verification and claims processing.

3. Telematics Devices Can Help Customers Save Money

Not every new technological advancement or tool is used exclusively by insurance companies. There are also tools that companies make available to their customers and policyholders to improve the ease with which those groups interact with the company. Telematics devices are one such type of tool. They are most commonly utilized in the automobile insurance industry, where they are distributed to policyholders either by being built into a car or being able to be attached to one. The telematics device then collects data on the driver’s actions, such as whether he or she keeps to the speed limit and how far a typical trip is, that the insurance provider can use to assess risk and develop predictive insights. A telematics device is typically used as part of an incentive program, where good driving results in the customer receiving a discount on his or her insurance bill.

4. Social Media Can Make Direct Communication Easier And Faster

One of the most popular new technologies available to all industries is social media. An insurance agency can leverage one or more social media platforms to improve its marketing strategies and relatability. This is possible because social media provides a direct, instantaneous line of communication with both existing customers and leads. An insurance company can directly interface with its current customers to provide assistance or information while also reaching out to entice potential customers.

5. Predictive Analytics Can Improve Companies’ Competitiveness And Planning

Insurance companies tend to collect large amounts of data from customers, developments in the insurance industry and other types of situations and operations components. Predictive analytics is an incredibly powerful and important tool that insurance companies can utilize to do more with their data. Once the data is collected, a predictive analytics program can analyze data sets to create accurate and detailed insights regarding risk identification and assessment, changing industry trends, recognizing patterns among the customer base or types of claims being made and the likelihood of success for various marketing strategies.

An insurance company does not need to use every new technological tool at its disposal to successfully integrate new ways of working or modernize its infrastructure. On the contrary, it’s better for the company to review the available tools and make informed decisions about which ones to utilize for the most effective results.