We enjoy many technological devices that used to be pure science fiction — mobile phones, video chat, Bluetooth speakers, touchscreen tablets, driverless cars and so on. So what’s next?
Here are four of the coming insurance technology trends:
- More online tools to attract millennials. Millennials are the new Holy Grail group of customers for insurers and agencies. Many of these young people are just now venturing into adulthood, and over the next few decades they’ll be on the receiving end of the biggest transfer of wealth that we’ve seen. This newly intensified focus on millennials will likely mean greater efforts to improve online customer services and mobile-responsive sites. Some of the online tools we’ll see in the coming years—probably sooner than later—include millennial-focused financial planning and educational resources, specialized social media tools and online customer service and policy change options.
- The development of subscription insurance coverage. Insurers will begin offering suspension of coverage options for certain lines to accommodate people who have increasing or decreasing risk. Insurers will need to be prepared by having a flexible front- and back-end system that can keep up with these changes and minimize or automate underwriting efforts as coverage is turned on and off.
- The increased adoption of digital solutions for claims processing. To increase efficiency and accuracy while also lowering costs, claims departments will become more open to embracing digital solutions for both accumulating and analyzing data. Digital solutions help claims in many of the same ways that they help underwriting. They can flag suspicious situations, process more information, help insurers better analyze their underwriting and approval process and pay policyholders faster, thus attracting even more business.
- Insurers will create more apps and tools. Tools allow insurers to collect data on driving habits and health and fitness metrics, thus helping to attract and retain clients, improve policy rating and reduce risks. The app revolution is just beginning. There are still legitimate concerns on privacy and tampering. Some of the recent announcements are marketing with first-mover publicity. Once that is sorted out we will see many more insurance companies offering web apps.
There’s no question that adopting new technology is what’s going to drive our industry and insurers forward. Now is the time to make sure your infrastructure is ready to adopt what’s coming.