How Technology Has Changed the Insurance Industry

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( — July 11, 2020) — For the consumer, the insurance industry may look almost unrecognizable compared to the experience one might have had twenty years ago. As computers and the internet become more and more ingrained in our daily lives, customers have different expectations of how they want to shop for insurance and deal with insurance claims. Insurance companies have had to implement new insurance software solutions in their procedures to keep up with what today’s clients require.

Shopping for Insurance in a Tech-Savvy World

The rise of technology and the internet has benefitted consumers immensely when it comes to shopping for insurance. While the same task would have taken multiple phone calls or in-person appointments in the past, it is now possible for those seeking an insurance policy to quickly get insurance quotes from multiple agencies online. This takes only a fraction of the time and allows for easy comparison and selection of a new insurance policy. Shoppers now can avoid talking to an agent, should they choose, which takes away the sales pressure of purchasing insurance. Online quoting also allows for greater transparency of insurance products, allowing consumers to make smarter decisions on what type of coverage might be appropriate for their situation.

Ease of Handling Claims

While insurance claims in the past may have been riddled with lengthy, painful paper forms, technology has allowed many insurance providers to ditch the paper and switch to online forms. Filling out forms doesn’t feel as much like pulling teeth as it used to when consumers can pop online using their phone or computer to quickly relay information to their insurance company.

Going paperless allows for quicker turnaround times with claims since paperwork no longer has to go through the mail and can be submitted to an agency within seconds of completion. It also allows insurance companies’ costs to be reduced, as postal charges and funds spent on paper are greatly lowered through the paperless methods made possible by new technologies.

Artificial Intelligence

AI is making a splash in the way insurance companies do business. Artificial intelligence can gather as well as compile data faster and more effectively than traditional human methods. Not only does it improve the quote and operation process, but it can also lead to safer drivers.

An article by Entrepreneur discusses how artificial intelligence has allowed insurance agencies to implement driving simulations that teach new teen drivers about safe driving, effectively reducing vehicle accidents. Multiple insurance companies now offer clients a device to track driving habits, allowing customers that consistently drive carefully to benefit from discounts.

Automating Operations

Technology has also brought a shift in how insurance companies handle their internal operations. As many operational tasks can be handled more effectively using automated systems, companies are able to shift where they direct funding within the company.

The rise of technology has changed the way customers interact with insurance companies, how insurance companies gather data, and also how insurance companies are operating internally. In fact, McKinsey estimates that insurance companies taking advantage of the new age of technology will eventually automate 50%-60% of their back-office tasks.

The automation of tasks traditionally performed by humans can result in the redefinition of personnel roles within insurance agencies. This allows insurance professionals to focus their time on doing activities that technology is unable to do, such as cultivate human relationships and build trust organically.

Technology has reshaped the insurance industry in almost every aspect of the business. Most of the changes brought on by technological advancements seem to have had a beneficial impact on the consumer’s experience. As the world continues to rapidly advance, the insurance industry will need to continue to adapt to keep up with consumer expectations.