That technology will be the fuel that powers the insurance industry machine is inevitable. And with exciting innovations in AI, data and cloud computing, the dreams of many insurers can become reality. Gone are the days of relying on slow, clunky systems and paper-based methods. Instead, insurers today can build, test and run product lines using entirely digital means, managing agile product streams and bringing new lines to market in record time.
In 2022, insurers should continue to fine-tune operations, creating the sleekest and most agile model possible to keep up with the ever-changing requirements of today’s customers. This means incorporating every resource possible into a smoothly running underwriting process -- and data will bring on one of the most radical improvements the industry has seen.
Large players in data will lend a hand
In the world of predicting and pricing risk, the more you know, the better. Data goes hand in hand with knowledge in the insurance industry, as insurers collect larger quantities of more accurate information than ever before as they attempt to build the best quote possible for their customers. It is no surprise, then, that data companies have been slowly but surely building influence in the insurance space, providing carriers with up-to-date insights to enrich their offering.
Tech heavyweights like Google, Apple and Amazon are predicted to affect the industry with their seemingly infinite data stores. Still, insurers are considering just where and how they will do so. Will they simply offer resources for a price? Or could they move into simplistic forms of insurance for themselves, staging a coup? Though possible, the latter seems unlikely; rather, these companies will extend their services to work in the background, nestling up to firms and providing data resources.
This will enable insurers to pinpoint and effectively target niche markets, using the wealth of information they gather to highlight new and evolving risks. Importantly, just having raw information will not be what pushes insurers to progress - if carriers cannot easily extract key insights from the data, the exercise can be fruitless. Large and small data companies alike must provide actionable insights, accessible through user-friendly interfaces and clickable features.
A revolution in product distribution
Big tech not only has resources to offer insurers but also distribution strategies and abilities. Creativity will be the name of the game as powerhouses, like Amazon, apply their recommendation concepts to insurance, as they have done for so many other industries. Perhaps we will see “recommended for you” and “based on your previous purchases” beginning to pepper product pages on insurance sites. Amazon has creative distribution down to a T, making products in multiple verticals and industries extremely easy to purchase. When you can buy so much online in seconds - from clothes to cars to holidays - insurers must question why they aren’t keeping up with other markets. In this sense, Big Tech will help greatly, offering constant availability and instant results.
Recommendations are part of a larger influence that Big Tech wields over the population, as they offer consumers more choice than ever before. Large companies influence not only what customers buy but also how they buy it, what device they use to purchase it, how to pay for it and much more. As a result, markets are more competitive than ever before, and insurance is not far behind. As a result, insurers must expand their offering regarding technology, using every available resource and tactic Big Tech has to offer. The industry does not need to expect “Amazon Insurance” just yet (though we should not rule it out), but forward-thinking insurers will be sure to take advantage of the opportunities that Big Tech can provide.