Did you know that the United States is the largest insurance market in the world?
With total premiums worth $2.8 trillion in 2021, the US dominates the global insurance market as per a report published by Statista. Trailing the US in this ranking are the United Kingdom, Germany, Japan, France, South Korea, and so on. However, the gap between the US and the others on this list is mammoth, where America dominates over 50 percent of the global insurance market share.
Despite its dominance in the global market, US insurance companies are still not able to fully satisfy their customers. The primary reason for this is that most of these companies are failing to provide good customer service.
According to USA Today, customers are fed up with the low-quality services they receive from their service providers. This also seems to be the case in the insurance sector, where customers are tired of having to wait long periods and go through lengthy verification processes to file for insurance and claims. Things need to change in this regard, and it seems that insurance companies are trying to make those changes through the means of insurance technology.
Having said that, let us explore a few insurance technology trends that are currently helping insurance companies ensure better customer service.
#1 Chatbots and Virtual Assistants (VAs)
As is the case with many other service-based industries, chatbots, and VAs have become important tools for insurance companies. These AI-powered technologies can interact with customers in real time, addressing their queries, providing instant quotes, and assisting with policy-related inquiries.
By integrating chatbots into their websites or mobile apps, insurance companies can offer 24/7 support and enhance customer satisfaction. These virtual assistants are capable of analyzing customer data, understanding complex insurance terms, and offering personalized recommendations.
#2 Workers’ Compensation App
A workers’ compensation app gives employees the power to seek insurance benefits through a mobile device in the easiest way possible. It makes the workers’ compensation process a lot easier by simplifying the filing process. The app connects users – the workers in this case – with their insurance carriers and automates the compensation claims. It also uses data analytics to minimize compensation losses.
According to Zenjuries, these apps store all the necessary documents and claim information so that it becomes easier for all the stakeholders involved to access the information as needed.
Thanks to this particular insurance technology, accessibility is made easier for all parties involved including the employee, the employer, and the carrier. On top of that, the app streamlines the overall process and helps save the injured employee a lot of time on the overall claim filing process.
#3 Internet of Things (IoT) and Wearable Devices
In the insurance sector, IoT devices such as connected home security systems, smart sensors, and wearable devices are playing a vital role. These devices provide valuable data on risk factors, enabling insurers to offer personalized coverage and incentivize customers to adopt safer behaviors.
For example, wearable devices that track physical activity can be used to offer discounted health insurance premiums to policyholders who meet certain fitness goals.
#4 Advanced Analytics and Predictive Modeling
Insurance companies are utilizing advanced analytics and predictive modeling techniques to gain insights from vast amounts of customer data. By analyzing historical data and employing ML algorithms, insurers can identify patterns, predict future risks, and make data-driven decisions. This helps in accurate underwriting, fraud detection, and personalized pricing.
Furthermore, predictive modeling enables insurers to anticipate potential claims and proactively provide risk mitigation advice to customers, fostering a proactive approach to customer service.
#5 Blockchain Technology
The global blockchain technology market is valued at over $10 billion according to Grand View Research. This piece of technology, originally known for its association with cryptocurrencies, is currently finding applications in the insurance industry. With its decentralized and transparent nature, blockchain technology can improve the efficiency, security, and trustworthiness of insurance operations.
Smart contracts built on blockchain platforms enable automated claim settlements, eliminating the need for intermediaries and reducing administrative costs. Additionally, blockchain enables secure storage and verification of customer information, protecting sensitive data from unauthorized access and enhancing trust between insurers and customers.
#6 Robotic Process Automation (RPA)
RPA involves using software bots that can automate repetitive and fixed-rule-based tasks. When used in the insurance sector, they can streamline administrative processes like claim processing and document verification. With the help of such automation, insurers are easily able to reduce errors and enhance the overall accuracy of their work.
At the same time, since the tasks are automated, insurance companies also get to save time and resources on small administrative and clerical jobs. This frees up employees’ time, allowing them to focus on more complex and value-added activities, thereby improving overall customer service.
Insurance technology isn’t doing anything revolutionary. It’s simply using existing technology to streamline the various insurance filing and claiming processes that are otherwise handled in a rather complicated manner. With the application of the technological trends discussed above, it seems that insurance companies have found their footing when it comes to providing high-quality services to their customers.