New technology trends are poised to spur innovation in the insurance industry. Insurance giants will focus on implementing new technologies and service-oriented architectures for driving growth. However, embracing new technologies will require a lot of restructuring in parallel. Technology integration at key points in the value chain will be needed to minimize disruption and define the success with Insurtech. It will be the key to rapid solution development, risk mitigation, and delivery of leading-edge products.
In the coming days, insurance companies will focus on advanced geospatial applications, environmental sensors, connected biometrics, risk analysis accelerators, etc. The toughest part will be managing these technologies in a constantly changing environment without being restrained by legacy systems and complex business processes. Technology Integration will be required to monitor high value and distributed computational tasks.
To ensure lasting success from new technology platforms, organizations should rethink their home grown approaches to connect multiple isolated approaches. Systems for billing management, policy management, and claims management should be made extensible to support new technology initiatives. This will help organizations to leverage distribution channels, capture new business opportunities, and engage customers better.
Telematics: There are immense possibilities with Telematics. Telecommunication devices embedded in cars will help insurers to study driving behaviour patterns and improve insurance products. The underwriters will be able to use actual data in devices and sensors besides demographic tables to determine individual insurance liability. The users can reap additional benefits like better risk selection, enhanced loss prevention, and increased governance. Real-time processing of telematics data can be difficult with manual coded approach. Organizations will require a robust integration framework to process wide volume, velocity, and variety of data falling from smart devices, gadgets, and machines.
Digital Platforms: The data interchange needs of the insurance industry are ubiquitous and it can be disastrous to view it as a human practice. Going forward the data exchanges with partners and customers will be primarily digital. The insurance centric business systems, engagement tools should deliver a 360 degree view of partner and customer for seamless integration. Advanced digital platforms will require a modernized integration infrastructure to connect cloud & on-premise services in a hybrid IT environment and improve the richness of interactions. It will help insurance leader to constantly monitor data streaming data and manage loyalty.
IT experts believe that digital channels will upend the proprietary physical channels in the coming years. Nearly 40% of physical and paper based operations like pre-purchase, purchase, claims, renewals will be transformed by Robotics Process Automation (RPA). This transitioning will also require the transformation of integration layer quick data format mapping and data exchange.
Business Process Automation: The insurance industry is not new to Automation. But in the coming days, insurance companies will be able to automate more complex processes across the value chain. Improved data processing will be required to process Artificial intelligence from a large number of sources. Businesses will be able to standardize data and allow automations systems to communicate easily.
Blockchain Technology Integration: Distributed Ledger Technology, Blockchain will power the providers to validate claims in real time and streamline insurance operations. Safe-Share has already become the first Blockchain Insurance Company. The technology holds the promise to enhance the quality of insurance services. Policy management will become much easier with ‘Blockchain Smart Contracts.’ However, successful Blockchain implementation will require integration with several other systems, communication protocols, and technologies, i.e., ERP, CRM, etc. Seamless technology integration will be a success factor for Blockchain in the insurance industry. Blockchain technology integration will reduce complexity and ensure secure governance of insurance operations.