The insurance industry has an opportunity to create a better image and user experience, and become more accurate and streamlined by adopting emerging technology. The concept of insurance pushed advancement since its founding. Take, for example, The Insurance Office, the first English insurance company, whose founders experienced firsthand the need for such a service after the Great Fire of London of 1666. Insurance has been driving innovation across industries such as airbags and seat belts in the auto industry. As a pioneer in innovation, this trillion dollar industry needs to remain competitive in this digital revolution.

The Challenge of Insurance Projecting a Positive Image:

One of the biggest challenges in the insurance industry is creating a positive image for customers. Clients are people who often only interact with insurance companies at the lowest point in their lives. Consumers find navigating through complex insurance forms a lengthy and opaque process, and end up losing trust in their providers when they need it the most.

According to the Association of British Insurers (ABI): “For an industry full of people passionate about making a difference for customers, it is extremely disappointing that the sector has so badly failed to secure their trust.”

Digital Technologies Benefit Insurance Companies and Consumers:

The digital revolution will offer new opportunities to change this image, however. Customer-centric digital applications can ease the burden of registering claims, making payments, and other unpleasant administrative tasks. For example, Dutch general insurer InShared has developed a virtual assistant that answers 56 percent of the company’s non-claims customer contacts, including quotes and booking repairs.

Another drawback with insurance companies is the rate at which they can process insurance claims and refund customers. Often times, customers are called by third-party collectors to medical facilities as insurance companies are still processing documents and payouts. With machine learning and blockchain technology, insurance claims can be processed faster and more securely (as well as at a lower cost). By incorporating emerging technologies, insurance companies can provide customers with payments on demand. In fact, according to a recent Bain and Company Study, 79 percent of consumers worldwide say they will use a digital channel for insurance interactions over the next few years.

Another aspect that insurance companies have grappled with is the risk of insuring customers. While healthcare and other sectors push for an all-insured approach, insurance coverage is still a business that needs to weigh risk factors. With more real-time data and predictive analytics from Artificial Intelligence and Internet of Things, models are increasing accuracy. Thus, insurance companies will be able to expand into new and previously risky markets.

Conclusion

As PreScouter has seen working with R&D directors, continuous innovation will be required to remain competitive. Innovation must be a strategic directive that comes from the top in order to be firmly ingrained in company culture and allow for the needed speed and flexibility in decision-making regarding innovation. The organizations able to shorten the time from ideation to commercialization will have great chances of success in their markets, and will ensure progress for both the insurer and insured.

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