Tech Trends: Insurance Industry Predictions

We enjoy many technological devices that used to be pure science fiction.

From mobile phones to video chat, bluetooth speakers to wireless touchscreen tablets to driverless cars, technology is a vital component of our day-to-day lives and society is quick to adopt it. With that in mind, let’s discuss some of the upcoming insurance technology trends predicted by PropertyCasualty360, Insurance Thought Leadership and #insuretech.

More online tools to attract millennials. Millennials are the new Holy Grail group of customers for insurers and agencies. Many of these young people are just now venturing into adulthood and over the next few decades they’ll be on the receiving end of the biggest transfer of wealth that we’ve seen. This newly intensified focus on millennials will likely mean greater efforts made to improve online customer services and mobile-responsive sites. Some of the online tools we’ll see in the coming years—probably sooner than later—include millennial-focused financial planning and educational resources, specialized social media tools, and online customer service and policy change options.

The development of subscription insurance coverage. Insurance Thought Leadership anticipates that insurers will begin offering suspension of coverage options for certain lines in order to accommodate people who have instances of increasing and decreasing risk. If this prediction does become something that the market responds positively to, then insurers will need to be prepared by having a flexible front and back-end system that can keep up with these changes and minimize or automate underwriting efforts as coverage is turned on and off.

The increased adoption of digital solutions for claims processing. To increase efficiency and accuracy while also lowering costs, claims departments will become more open to embracing digital solutions for both accumulating and analyzing data. Digital solutions help claims in many of the same ways that they help underwriting. They can flag suspicious situations, process more information, help insurers better analyze their underwriting and approval process and pay policyholders faster, thus attracting even more business.

Insurers will create more apps and tools. Tools allow insurers to collect data on driving habits, health, and fitness metrics, thus helping to attract and retain clients, improve policy rating and reduce risks. The app revolution is just beginning. There are still legitimate concerns on privacy and tampering. Some of the recent announcements are marketing with first mover publicity. Once that is sorted out we will see many more insurance companies offering web apps.

There’s no question that adopting new technology is what’s going to drive our industry and insurers forward. Now is the time to make sure your infrastructure is ready to adopt what’s coming.

What trends do you see on the horizon? Are you looking forward to them?