In fact, technology has completely reshaped insurance and given rise to what is now known as InsurTech.
Time is money and using technology to improve efficiency across various insurance operations is a no brainer. This technology can be in the form of smartphone applications, claim acceleration tools, automated compliance processors or even fitness wearables. Through its partnership with machine learning, InsurTech is now poised at the edge of a digital revolution that will redefine how it operates.
A report from PwC forecasted that artificial intelligence’s (AI) initial impact on InsurTech will mainly relate to improving efficiencies and automating existing customer-facing underwriting and claims processes. Over time however, the impact will become more far-reaching. AI will be able to identify, assess and underwrite emerging risks and identify new revenue sources, impacting nearly every aspect of the property and casualty insurance industry.
Using machine learning to gather customer insights helps and reach a wider audience can now be done even more efficiently. Insurers are better able to improve customer acquisition, risk models, marketing and distribution channels all with less work than before. With AI playing a crucial role in maximizing the available data and leveraging it creatively to develop better products. Some, large online insurers are already using machine learning to customize the prices of their products and use data from social media and phone calls to reach out to new consumers.
AI is also essential in enhancing the quality of the products and services offered. For example, chatbots help to improve the customer experience and can potentially replace costly insurance agents. Through bots, firms are able to establish trust and understanding by making sure that policies remain viable to suit the needs of the customers. However, it is important that firms listen to and understand their customer base to find an AI chatbot services that coincides with their needs. This is based on a range of gathered data including culture, age of target market, smartphone penetration rates and level of education.
In short, insurance technology would be nowhere near what it is today without the assistance of machine learning and artificial intelligence to streamline data, pull out insights and optimize products. Inevitably, the internet of things now plays a key role is insurance. Insurers now rely on AI and insurance technology to customize communication, minimize risk, harvest data and even improve the customer experience.
By integrating our advanced digital technologies with leading core insurance platforms, like Duck Creek Technologies, Penguin.Tech is leading the charge to reshape the way the industry operates. Our goal is simple: to find more efficient and effective ways for our clients to add value for their customers.