Insurance sector was one of those sectors which were untouched from the advancements and was continuously using the traditional ways to serve customers.  In the recent years, this sector has undergone a huge variation with the help of technological developments. There are a number of technologies which has been playing a crucial role in the expansion of this sector with enhanced user experience. The technology has brought mobile apps, automated claim processing bots, online policy handling features, and more. Apart from these benefits there are many more hidden aspects in this sector which has been developed for amazing user experience. Here we have included few facts related to insurtech that gives a clear picture about this industry and its future growth.

Impact of technology on insurance industry:

Now the game of insurance sector is going to be changed forever. Since last many decades, insurance sector was more likely to be in the favor of the industrial growth. Now, with the emergence of technology, it will be all about the customer services, their satisfaction, and attention grabbing offerings. Insurance sector is not boring any more with the long queues and quick explanation of their customer executives. It has changed to the completely digitized platform, where customers can read, understand and select the policy at their own by taking required time and can also make payments online. It has also impacted the share market with a great leap in the prices.

Advantages:

A product is considered as best for the customer if it satisfies their requirements promptly. With the incorporation of technology in the insurance sector, relevant companies has opened door for the flexibility. There are no strict products for any customer; every product comes with a customization facility which can be altered based on their requirement. Insurtech is empowering the customers to take complete command over their policies and use it for their benefit. Artificial intelligence, IoT, and machine learning technologies have made almost procedures automated and swift enabling to serve customers without any delay.

Believe it or not, every coin has two sides. Likely, where insurtech serves with a number of benefits and customers satisfaction, there are also few hidden challenges for this industry. The insurance sector is completely changing for the business giants. Now there is why behind every what and with the help of technology we have answers for all such questions too. Folks of this generation is much more techie and seek answer for their each question. This raised a need of digitization in insurtech industry and also gave a rise to several challenges in the transformation of complete industry to the digital platform. Apart from this, there are several challenges faced by this industry. Few of those are discussed here.

Challenges for insurtech are listed below:

Connected ecosystem:

A well connected business ecosystem is required for the insurance sector to keep the process fast-paced. A single platform has the potential to connect all the participants with each other to communicate, rising the standards higher and also making the sector more competitive. The challenge faced by the insurance sector is connecting every single folk with distinct elements consisting in the. It is imperative for the insurtech industry to come up with digital solutions which can line up all the technologies and can automate the connection of insurance ecosystem.

Lack of digitization agility:

As the insurance industry has stepped up in the digitized world and has extended its complete wings with digital services then it also requires experts to operate all the technicalities professionally without any flaw and also require tech savvy customers who can understand the use of digital platform and can use it effectively without any hindrance. In recent days, insurance industry is supporting their customers to take a flexi policy that suits their requirements, then the industry also require a digital platform that understands this process and can take decision based on the inputs without doing much manual work on it. Serving customized services to each customer definitely need a smart digitization with proper information and smart decision making power. A small error in the input or results may result losing the customer forever. Hence a master hand and detail eye precision is required for excellent services.

Just like other sectors are undergoing great and swift changes with the help of latest technologies, insurance sector is also having a great impact of technology. Comparing with the last decade, now a number of advancements have been witnessed by the sector in last few years. There are a number of insurance sector’s components which has a great development and now a number of agencies are availing the benefits of certain changes. Making changes in the industry has benefited customers too which is keeping them much inclined towards the insurance industry and is helping the insurance companies to hold their clients for a long time. The most effective and responsive changes made by the technological development in the world of insurance sector is the use of mobile application which has made this complete sector much handy and has wrapped it in a single mobile application.

Major technologies impacting insurance sector are listed below:

Predictive data analysis:

Distinct data is required by the insurance sector to operate effectively. A future prediction is crucial for enhancing the functionality of insurance sector. With the help of predictive data analysis insurance sector is able to analyze the data related to each of its component and also its customers and then can make future predictions for making decisions. It assists to predict forecast for below listed aspects:

• Predicting business requirements and trends
• Analyzing and predicting business risk factors
• Risk of fraudulent
• Recognizing customer’s need and serving them with customized plans

Chatbots:

Now customers are fast paced and wish to get a quick solution for their questions. But always serving each customer manually is not possible; it may be result in delayed response. With the help of chatbots now insurance sector is able to serve an instant solution for the questions of their each customer.