Innovation and technology play a huge part in the success of every business. You will have to adopt technological approaches to scale and keep up with modern business trends regardless of your field.
The influence of technology has grown immensely in the last three decades. A few decades ago, we were not as reliant on technology as we are now. We now have businesses, such as e-commerce, that are internet-based and solely rely on technology to survive.
It’s safe to say even businesses that are not entirely reliant on technology will find it hard to survive without embracing the possibilities and trends of technology. For context, modern insurance agencies rely heavily on technology to access exclusive auto insurance leads. With the concept of insurtech, getting leads through digital means is just a minor aspect of how technology has shaped the modern insurance industry.
Technology and Auto Insurance
Many auto insurance companies have caught up with the technology buzz in the last few years. After exploring the benefits of using technology for their businesses, they have seen an upward trend in the inclusion of gadgets and other software to make the running of their businesses smoother.
Many technological advances are still in the developing state. But one can already see some visible effects of technology in the auto insurance industry. Previously, we had to consult an agent and work with a claim team to learn about the insurance packages and how to get your claim. But now, most of these processes can be done online.
Here are some ways technology is changing the auto insurance industry.
- Claim Process Automation
The main reason for subscribing to an insurance package is to have a financial backup plan, a reliable system to fall on in the case of an unfortunate event.
Most insurance companies’ customers complain about the lack of speed in processing claims and releasing payments when due. Sometimes, it happens due to an excess number of claim requests. It often leads to customer dissatisfaction, which can jeopardize the future of any insurance company.
Many insurance firms have switched to automating the claim process. It allows their customers to complete all forms online and file their claims without visiting any physical office.
This innovation will save the company the cost of manpower and ensure that claims are paid faster, gaining more satisfied customers.
- Cybersecurity
As more insurance companies switch their processes online, the fear of data theft grows. There are many forms and information you have to fill out online while completing registration for insurance. Much of this information is personal and sometimes includes credit card information used for payment.
Cybercriminals are constantly looking for companies that collect such information with weak security to hack for their benefit. The duty to protect this information falls on the insurance company. They have to work hard to guard all data from hackers.
It can be done by hiring professionals to handle all matters about cybersecurity in their companies. As more companies explore better cybersecurity options, we hear about lesser hacking and data theft cases.
- Chat Bots
Whenever we visit the webpage of insurance or any company, we tend to have questions that need instant answers. Chatbots can be used instead of hiring customer care agents who have to be online round the clock to answer these questions.
Most of the questions asked are repetitive, and it will be a waste of the workforce to have people answer the same questions multiple times daily. It’s easier and faster to let the chat or software handle it.
Chatbots are equipped with an algorithm to analyze questions and respond to queries with the correct answers. Because of artificial intelligence, customers may not know that they are conversing with a robot.
- Big Data and Analysis
Every industry needs data analysis to understand the behavior of its customers and create solutions to fit their needs and satisfy them.
Similarly, to create valuable products to cater to their customers’ needs, insurance companies need to analyze tons of data to get the necessary information to stay ahead of their competition. Technology can help them gather such data and analyze and interpret it.
We are seeing auto insurance firms hiring more data scientists to help collate and analyze the data for the firm’s growth. Data is essential if analyzed properly and the results are put to good use.
- The Internet of Things (IoT) and Telematics Insurance
The internet of things is one of the most important technologies invented. It connects physical objects, software, and sensors to exchange information and data over the internet.
It will help auto insurance companies instantly gather information from cars and car owners. People with multiple cars do not want to pay insurance because they do not drive often. It’s where telematics comes in. With this technology, insurance companies can introduce the pay-as-you-drive options for their customers and enhance the range of their products and services.
- Low Code
With continuous changes to products and services, insurance companies need to update their websites and platforms with recent changes. Previously, this action could only be done by experienced IT professionals, and it’s cost-intensive to keep these professionals in your employment.
These processes have been made easier with low code configuration tools. Now business stakeholders can develop their apps and make basic changes to products and services by themselves.
This technology has helped companies to attend to their customers with speed and empowered employees to take charge of their work.
Working on user interfaces has become an easy feat with low code.
- Predictive Analysis
Insurance companies now collect data to predict the behavior of their clients. They use data to anticipate an occurrence and create solutions to those problems before they happen.
There are many ways auto insurance companies can use predictive analysis, such as:
- To identify customers who are considering cancellation and offer them solutions to keep them with the company.
- Anticipate trends and find ways to tap into them.
- Identifying the risk of fraud and stopping it before it happens.
- Better pricing and risk selection.
Auto insurance agencies that adopt predictive analysis have seen a spike in revenue. Their loss to profit ratio is higher, and they have been able to stay ahead of their competitors.
- Blockchain
With blockchain, it’s easy for all employees and departments of an insurance company to share and access information. With decentralization, all information is stored in one location and can be accessed easily by all team members. Data shared is reliable and accurate. It eliminates the risk of errors and fraudulent claims.
Many auto insurance companies have already adopted blockchain to help streamline their operations. The concept of using blockchain is very easy once understood. Companies who want to adopt it have to hire and partner with IT professionals and solution providers to control the parts of this technology, which is complex.
Final Thoughts
The auto insurance industry is reaching new technological advancements, and the results of such adoption are impressive.
While working on innovation, technological advancement, and being ahead of their competitors, every auto insurance company should understand the importance of data and how it works to help themselves achieve success.
With the recent accomplishments, it’s expected that more auto insurance firms will adopt some of the solutions provided above in the foreseeable future. As a result, we will witness an increase in the usage of technology, a jump in revenue, and happier customers.
