InsurTech is a rapidly growing market that is seeing increased investment in technology and digital tools that continue to evolve the insurance world. Traditional insurers and InsurTech companies are working together to enhance decision-making tools and improve the consumer experience. Two technology themes that continue to present themselves in making these advances are the use of big data and artificial intelligence (AI).
When it comes to using big data, insurers have the development of other technology to thank for providing information on which they can base their decisions. Who would have thought that insurers could benefit from the wide use of such products as smart watches and smart home devices? Health and life insurers can take advantage of the big data provided from wearable activity tracking devices to make smarter underwriting decisions. Property & casualty insurers can take advantage of in-home smart devices to help limit their losses. Investing in the use of data from these technologies can be a great benefit for insurers.
Using AI can also help insurers to meet customer demands that are ever-changing in today’s world. Consumers are becoming accustomed to the ease of transacting business online. In the insurance world, AI has the potential to improve everything from the shopping experience to the claims process and more. One thing for insurers to consider is how the use of AI will make their products and processes appeal to a younger audience.
Big data and AI are a couple of examples of growing technology that can be used to help insurers position themselves for the future. These and other technologies will help insurers make smarter decisions and keep up with consumer expectations. As InsurTech companies continue to grow and disrupt the insurance environment, it will be important for insurers to tap into the use of available technology.