Previously, the insurance sector was pleased with its legacy models until the digital revolution picked up the pace. However, the insurance landscape is evolving with the rapid escalation of contemporary technologies. Recent years have witnessed the ‘Novel Coronavirus,’ which extensively impacted the global insurance industry. But with time, it is making a steady but prodigious recovery from the pandemic. Despite persistent concerns about Covid-19 variants, 2022 is expected to showcase the continued momentum accelerated by trends in insurance technological advancements that will dominate in the upcoming years.
Insurance technology will evolve even more in 2022. Digital offerings in insurance and a defined omnichannel approach to consumer service are leveraging the pace of change in the P&C insurance sector.
Insurance companies can use data from IoT devices to better determine rates, mitigate risks, and even prevent losses. P&C insurers cannot afford to delay adopting IoT capabilities, as the forecast says a global IoT insurance market value will be $42.76 billion by 2022 (source). IoT increases the accuracy of risk assessment.
The use of artificial intelligence (AI) has expanded swiftly in the insurance sector. The Artificial intelligence (AI) in insurance market size is valued at USD 6.92 billion by 2028 and is expected to grow at a compound annual growth rate of 24.05% in the forecast period of 2021 to 2028 (source).
According to Key Management Group Inc., Artificial Intelligence, Machine Learning, and Predictive Analytics are the three pillars of Data Science that have enabled companies to extract actionable insights from their data. To know more, please visit https://kmgus.com/ai-ml/.
AI provides insurance companies with the ability to create personalized experiences, meeting the ever-growing demands of modern customers. In addition, with AI, insurance companies can enhance claims turnaround cycles and make the underwriting process faster and more accurate. AI reengineers core processes and algorithms to make insurance more intuitive and predictive.
Machine language is another significant contemporary trend in the insurance industry. Emerging machine learning techniques are bringing purpose and order to the unstructured data to be more efficiently used for business insights and automated software testing. It increases operational efficiency, detects fraud, and enhances consumer services. Machine learning helps in:
Robotic process automation (RPA) is an emerging trend that has evolved from various technologies. It automates the repetitive, mundane tasks of an organization, thereby reducing operating costs and improving the overall customer experience. KMG having end-to-end RPA expertise, consults and advises clients throughout the automation journey helping them to successfully implement an effective automation strategy. (source).
Blockchain is a distributed log of records called blocks that are virtually incorruptible. Each block has a linkage to a previous block and has a time and date stamp. It is self-reliant and does not require coordination from an intermediary. Blockchain introduces greater transparency, security, and immutability to operations. Blockchain is an insurance technology that is still in its conception, but rapidly insurers are trying to adopt it. Experts believe its influence will be seen in:
A study predicts that by 2025 95% of all customer interactions will be powered by chatbots (source). The evolution of chatbots enables companies to interact with their consumers seamlessly, saving time and money. A chatbot can walk consumers through a policy application process, reserving human intervention for more significant cases.
Key Management Group Inc. is a Software Development Company headquartered in New York. The company provides best-in-class services in consulting, technology, operations, and digital transformation. We work with clients as their technology partner delivering the best-fit services ranging from Traditional IT to Digital Transformation.
Furthermore, with all of the innovation taking place in the property and casualty insurance sector in current years, 2022 will be a fascinating year to watch for insurance technological developments.