Technological innovation has the potential to change any industry for the better, and major technological developments in the last decade or so are creating exciting opportunities in insurance.
Here are some of the top ways that insurance can leverage digital technological innovation.
1. Advanced Data Collection
From wearable technology, to devices you can put in your car to monitor your driving habits, all of these innovations can provide insurance companies with highly useful data for their policyholders. Smartwatches alone can provide a large amount of beneficial data. For example, the Apple watch can track all of the following
; heart rate, activity levels, steps taken, calories burned, movement, among others.
Technological breakthroughs are making it easier for insurance companies to gather critical data. Being able to access large amounts of data can help insurers to create better policies, identify their lowest-risk policyholders and obtain alerts when policyholders are at risk for certain types of loss.
See also: The Key to Digital Innovation Success
2. New Types of Insurance
All of the advances in technology have led to many companies becoming increasingly reliant on their tech infrastructures. Also, increased dependence on technology has created a heightened need for data to be protected. Massive losses can be incurred by companies that have their sensitive data breached. The result is that “cyber insurance” is becoming increasingly popular.
Almost 10% of companies
now have cyber insurance. This number is likely to increase as more insurers begin to offer this type of coverage, and more companies realize that they need it. In fact, within a few years, cyber insurance could be as common as property insurance or liability insurance for businesses.
3. Increased Personalization
Many insurtech companies are now making it possible for customers to engage with their insurance companies through various types of apps. These apps allow policyholders to set up profiles and indicate their preferences for service offerings. Customers can even choose to connect with their insurance companies on various social media outlets if they want to. And, because 47% of millennials
report being influenced by social media when it comes to making purchases, this is a good thing.
Personalization can be beneficial when it comes to improving customer experience, and helping customers to enjoy their interactions with their insurance company. In this sense, mobile innovations are making personalization easier by connecting policyholders with insurers directly on their smartphones.
Technological innovation in insurtech, wearable devices, data, apps, mobile devices, computers and many more areas all have a strong impact on the insurance industry. The time from the start of the new millennium until the present day has brought many of these new technological innovations. Some insurance companies may hesitate to take advantage of new technology because of a fear of change.
However, there are incredible opportunities out there. Advanced data collection, new types of insurance and increased personalization are only a few of the ways that insurers can leverage digital technology innovation to become more profitable.
See also: ‘Digital’ Needs a Personal Touch
As technology continues to advance, even more opportunities will become available.