Insurer of the Future Will Use Technology to Shift from ‘Insuring Loss’ to ‘Ensuring Protection’–Everest Group
To navigate these shifts, the insurer of the future will leverage next-generation technologies such as analytics, artificial intelligence (AI), blockchain and IoT.
For example:
- Insurers are already using IoT to "ensure protection" by monitoring homes (smoke and carbon monoxide alarms), cars (mileage, driving patterns), persons (exercise, lifestyle patterns), and businesses (boilers and water systems).
- Insurers will use digital channels to sell hyper-personalized products; for instance, an insurer's mobile application might use geo-location data to offer travel or airline insurance to a customer who is at the airport.
- Insurance will be bundled with products and services. Market leaders have already begun bundling insurance with remittance transfers and real estate purchases. As this trend expands across all industries, insurers will become "invisible" to the end user.
- Insurers will tap the connected ecosystem to underwrite risk in near actual time. Analytics and AI will be used on real-time as well as historical data to assess risk, generate quotes, negotiate premiums and execute smart contracts.
- Policy administration processes are already shifting from being highly manual and paper based to automated and digitized, and this will rise to another level as connected systems, blockchain and machine learning applications mature.
- Machine learning will transform a highly manual, reactive claims management process to an automated, proactive one, and blockchain technology is showing transformative potential for use cases such as claims validation, fraud detection and prevention, and automated claims payments.
These are just a few ways technology will play a major role in the transformation of the insurance industry over the next decade as insurers shift focus from "protection" to "prevention" and as the bundling of insurance with products and services becomes more prevalent. Today, insurers have begun collaborating with IT service providers to build and evaluate proof-of-concepts, develop customized solution offerings, and test use cases in innovation labs and centers of excellence.
"We're already seeing evidence of insurers beginning to embrace their future reality," said
Insurance constitutes 30-35 percent market share of the overall
These findings and more are explored in detail in
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Read the full story at http://www.prweb.com/releases/2018/01/prweb15068812.htm
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