03 May Digital Advancements In Insurance
Insurance has been around for a long time, but the practice of assessing risks and paying claims hasn’t really changed. Even in the digital age, the process of protecting property or health has only been made more efficient to keep up with the times. However, as information and services become easier and quicker to access, a lengthy and arduous process like insurance claims needs to heavily adapt not only to beat the competition but to survive as well. In the long run, digital revitalizing has proven to be necessary but also helpful.
In a recent study done by Bain and Google, professionals found that revenues could increase up to 28% over the next five years with technological implementations. Also, claim payouts and administration costs both had estimated decreases of 19% and 72% respectively. While there is no precise prediction for how people will react to new technology in three to five years, the study focused on more than 100 different digital devices to emphasize the unavoidable use of new technology. Even as it stands today, the insurance market stands to gain significant boosts.
Although there are several devices that can be used to assist the insurance process, a few notable cases known as “disruptive technologies” provide clear and positive changes for a company. For example, projects such as advanced analytics (AA) help to gain insights into consumer preferences and protect claims against frauds. Distributed ledger technology also automates and updates policies and claims without the need for administrative attention. Finally, even the recent development of Virtual Reality has offered the ability to assess real or potential accident areas. While the ideas may be daunting, some companies have already begun to adapt to new advancements.
Throughout the world, insurance companies now compete not only to protect consumers but also advance their methods. For instance, AWS Insurance provides the AWS 24/7 app. AWS 24/7 provides policy changes, documents, insurance certificates, and other messages at any time of the day. Also, the app can also be accessed from any mobile device whether through a laptop or an iPhone.
As technologies move towards items like self-driving cars or other fantastic devices, there will undoubtedly be more advances to appease the public. With the benefits of insurance, everyone may be better off for it.