In 2030, 80% of all insurance policies will be sold in the metaverse, seamlessly transacted using distributed ledger technology, and claims will be assessed and paid automatically in seconds, according to Beinsure Media Report about technology strategy for insurance companies. New technology is not a goal in itself. It needs to create additional value for customers and partners and must be reliable and trustworthy.
The pandemic has led to an unexpected rise in virtual meetings, necessitating better communication technologies. Real-time holographic communication represents the future of virtual meetings, blending reality with virtuality. Although not a new concept, holograms have yet to see widespread adoption.
Future technology will enable physical and graphical objects to interact seamlessly, creating a mixed reality. Edge computing processes data near its source, reducing the strain on network resources. “Transmitting large amounts of raw data over a network or into a cloud puts a tremendous load on network resources. In some cases, it is much more efficient to process data near its source and send only the data that has value over the network,” says Oleg Parashchak, CEO of Finance Media Holding. Companies must embrace these opportunities to remain competitive.
Consider these opportunities:
- Digital business models: Car manufacturers like Tesla, Daimler, and Volvo integrate insurance into vehicle sales. Embedded insurance is already a reality in China and is being implemented in Europe for cars, travel, and retail. Insurers must adopt flexible API connections and rapid product integration to keep pace with new technology trends.
- Broker and agent-led businesses: The pandemic has accelerated changes in these businesses. Besides communication platforms, underwriting solutions with data enhancement and AI, such as insurance-specific NLP, are crucial.
- Data and NLP: Insurers need underwriters and claims handlers to understand submissions and loss data thoroughly. NLU/NLP can save insurers valuable time by handling routine cases, allowing more focus on edge cases. Advances in NLP, coupled with context-sensitive multimodal AI, are vital for improving customer experiences, risk assessments, and claim processing times.
- Investments and ESG: Insurers face direct impacts from climate change. Investments in carbon capture, energy storage, and renewable energy are essential to address these threats. Health and life insurers must leverage digital health technologies, telemedicine, and biotech advances to meet rising demand and improve underwriting and risk management with new data insights.
Hyperconnectivity refers to the advanced connectivity linking various systems, devices, and entities through data fabric infrastructure, providing enhanced bandwidth and speed like 5G. It is essential for building digital infrastructures.
These strategies collectively help insurers improve efficiency, reduce costs, enhance customer experiences, and stay competitive in the evolving digital landscape:
- Enhance underwriting and claims processing with AI and ML. These technologies analyze vast data sets, predict risks, and automate decision-making, increasing efficiency and accuracy.
- Improve transparency and security in transactions using blockchain. This decentralized ledger technology reduces fraud and speeds up claims processing through smart contracts.
- Utilize IoT devices to collect real-time data for more accurate risk assessment and personalized insurance policies. Wearables, telematics, and smart home devices provide valuable insights.
- Harness big data to gain deep insights into customer behavior and market trends. Data analytics help insurers tailor products, optimize pricing, and detect fraud.
- Implement telematics for usage-based insurance models. This technology monitors driving behavior and helps insurers offer customized auto insurance policies based on actual usage.
- Automate repetitive tasks with RPA to streamline operations. This improves efficiency in policy administration, claims handling, and customer service.
- Develop digital platforms to offer a seamless customer experience. Integrated ecosystems allow for easy access to multiple services and products, enhancing customer engagement.
- Strengthen cybersecurity measures to protect sensitive customer data. Implement robust protocols and advanced security technologies to mitigate risks from cyber threats.
- Adopt cloud computing for scalable and flexible IT infrastructure. Cloud services support data storage, processing power, and facilitate remote work, reducing costs and improving agility.
- Enhance mobile capabilities to meet customer expectations for digital engagement. Mobile apps and responsive websites improve accessibility, customer service, and policy management.
By Microsoft Report, the most representative insurance companies at the global level, this research focuses specifically on the role played by technology and market impulses in cultivating innovative initiatives in the sector.
