With the arrival of the 21st century, the world launched itself into an era of fast-paced and copious technologies. For an industry functional in the 1990s, it was a completely unprecedented situation to work along with machines that have an intelligence of their own.
The transition into numerous technologically advanced prospects from manual work took as less as a few decades. These technologies carved a path that led to efficient processes and ameliorated products, services, and monetary gains.
Let’s take a look at some of these futuristic technologies that have the potential to disrupt the insurance industry.
Artificial Intelligence (AI)
This tech is used to power a number of processes in the life cycle of an insurance product. Beginning from customer acquisition to claim settlement, Artificial Intelligence can eliminate redundancy and manual processes to a decent extent. This can be achieved with the help of chatbots and smart automatization or RPA (robotic process automation).
A celebrated feature of AI in the insurance industry is its capability to gauge data for identifying fraudulent claims. This technology can also be helpful while determining new cases or situations to predict the possible events that could occur, based on previous learnings. AI systems are always evolving to provide better results with each case they parse.
The insurance industry was encumbered by stagnant practices that involved manual processes like risk assessment for underwriting, or a claims management team reviewing damage after a claim is raised. This increased the Turn Around Time (TAT) of each of this process.
Powered by a simple idea, a drone in insurance industry has opened doors to a wide array of applications. Drones have increased the efficiency of processes to an immense level. An example of using this technology is to access property for damage with the help of a drone. It can capture images and videos of the damage occurred at an inaccessible area, say a house hit by an earthquake of high magnitude.
Internet of Things (IoT)
Our interest in automation is increasing with each passing day. The day where self-driving cars, smart homes, and wearables will become a way of life, is approaching rapidly. What will be the role of an insurer and how will risk be analyzed in such a situation where machines are performing most of our tasks flawlessly? This is where the Internet of Things comes into the picture.
IoT is a technology that helps devices communicate data, thanks to IPv6. Each imaginable thing has been allocated with a unique IP address that helps identify each of these things individually. With respect to Insurance, data from telematics devices, drones, and wearables can be collected and analyzed for information and patterns. The application of IoT ranges from Health, Auto, and Travel to Property insurance as well.
To wrap up, human intelligence has no bounds that will limit the creation of such innovative concepts. The future is here and with the passage of time, we will experience enhancements that were thought to be impossible or “only possible by magic”. Though of course, these innovations will be a way of life for future generations.
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