Which Technological Trends Have Transformed the Insurtech Industry Landscape?

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• Insurtech is the use of technology to revolutionize and innovate the insurance landscape. Insurtech companies use advanced technology such as artificial intelligence, machine learning, blockchain, and big data analytics to streamline processes, develop personalized insurance products, enhance customer experiences, and improve risk evaluation and control. These technologies are changing the traditional insurance sector by improving efficiency, reducing costs, and focusing on customer needs.    

What recent technological trends are fueling changes in the Insurtech sector?  

Artificial intelligence (AI) and machine learning (ML)  

Artificial intelligence has transformed various tasks that used to rely on human intervention.  For example, rather than communicating with support agents, clients are able to engage with chatbots for instant assistance.   

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In addition, machine learning, which is a key component of artificial intelligence, allows for the analysis of past data to develop predictive models. These models are essential for sharing information and can be adjusted with input from users.  By incorporating new information, these models improve over time to accurately determine premiums based on variables such as demographics and risk factors.    

Automation  

Insurtech transformation is based on efficiency. This indicates that when customers complete an online form for insurance, the information is automatically saved in a database or used to generate a policy ready for signature.  Mechanized applications are used to remove the need for manual involvement when technology autonomously performs a task.    

Big data analytics  

Big data is the accumulation of large amounts of data. It includes a wide range of data, the rapid collection of data in real-time, and many data collections. The techniques used to collect big data allow insurance companies to obtain a wider range of data for the analysis of customer risk profiles to gain a deeper understanding of customer characteristics and behavior. In addition, this data is collected from millions of customers and input into the predictive models.  

Blockchain technology  

The insurance sector is being transformed by blockchain technology, which offers transparent, safe, and tamper-proof systems for records. Using blockchain technology, smart contracts are able to automate the processing and settlement of claims, reducing administrative costs and reducing disputes.  

Internet of Things  

Another technological innovation in the insurance industry that integrates physical components is the Internet of Things (IoT). Despite being a digital concept, IoT relies on the interaction between physical objects and software. For instance, many auto insurance providers now provide devices that monitor vehicle speed, handling, and driving behavior, which is used to incentivize good driving practices or penalize bad driving habits. This unique amount of data allows insurance companies to adjust premiums based on very specific information.  

How are leading companies in the sector setting themselves apart as industry leaders?    

Leading industry players, including Quantemplate, DXC Technology Company, Wipro Limited, and Damco Group, are implementing novel strategies to expand commercial deployment and strengthen their position in the global Insurtech sector. For example, in December 2020, Damco Group collaborated with Omnius, an AIaaS provider, to speed up the implementation of data-driven cognitive claims management by insurers. The partnership aimed to help insurers rapidly integrate AI into their claims process, thus improving the efficiency of interactions between insurers and insured persons.  

On the other hand, in August 2023, DXC Technology Company revealed a new long-term agreement to provide AT&T with comprehensive support for a segment of its IT infrastructure. This agreement involves DXC's oversight of AT&T's mid-range IT infrastructure, which encompasses enterprise computing, backup, storage, and recovery systems. In addition, DXC will be responsible for the management of systems, databases, and storage, as well as the hardware architecture and maintenance of these environments.  

To sum it up, the global insurtech industry is experiencing considerable changes due to the adoption of advanced technologies such as artificial intelligence (AI), blockchain, and the Internet of Things. The leading companies distinguish themselves by forming strategic alliances, innovative solutions, and focusing on improving customer experience and operational effectiveness. This ever-changing environment shows continued growth and transformation in the insurance sector.  

To kickstart a new journey in the global Insurtech sector with future estimations, contact our experts here!    

Short Description: 

Insurtech pioneers are integrating advanced technologies, including AI, blockchain, and IoT, to transform the insurance industry. Furthermore, they are forming strategic partnerships, offering customized solutions, and focusing on customer needs, for improved efficiency and personalized insurance coverage.    

Author’s Bio: - Harshada Dive is a computer engineer who loves to experiment with trending topics and is passionate about presenting these topics creatively to her audience. When Harshada's not writing, she is either gardening or listening to inspirational podcasts.