Very few areas of modern life have remained untouched by the tsunami of technological advancement humans have experienced over the last hundred years. Its effects can be felt in all areas of life, and the insurance industry is no exception. Some ways the sector has been affected include:
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Streamlined processes
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Enhanced customer experience
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Speed of acceptance
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Innovative risk assessment programs that utilize complex algorithms and artificial intelligence
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Efficient claims processing solutions.
The benefits of technology-driven life insurance
The ability to do all of this online cuts out the reams of paperwork that would once have been required, making the process more eco-friendly than it once was. This also has the bonus of being exceptionally convenient with the advent of insurance apps and comparison sites. Availing yourself of everything from travel insurance and competitive vehicle quotes to life insurance in Australia has never been more straightforward or less time-consuming.
The technology driving the most change in the insurance industry
It will be no great surprise to those living in the real world to learn that artificial intelligence (AI) is already creating seismic changes in how the insurance industry operates. AI technology learns and (allegedly) improves over time as more data is received and processed. This facilitates the easy performance of dozens of tasks that once took human effort. However, the arrival of AI in the industry is not some grand, dastardly plan to reduce employee numbers and save money (although those are inevitable side effects).
The calculating capacity of computers is nothing new to us, but their ability to learn and adapt as they go is. This ability and unrivalled pattern recognition should allow them to catch fraudulent claims and identity issues easily. Does this mean they are bound to make mistakes and single out legitimate claims? Almost certainly, and this is where the human element of the chain cannot yet be omitted entirely, but the clock is ticking…
What is the most significant technological threat to the insurance industry?
The biggest threat the insurance industry faces, technological or otherwise, is through cyber-attacks and data breaches. The loss of their valuable, highly personal data is not something any client wants to hear and can cause an enormous, expensive headache for the insurance provider that allows it to happen. Of course, cyber-attacks and malicious breaches of this kind are nothing new, but with the information required to apply for life insurance successfully, the stakes are significantly higher.
Conclusion
There can be no arguing that technology has positively impacted the insurance industry, allowing companies to cut costs and pass savings on to their customers. There may be a risk of injustice and unfair refusals when you remove the human element from the decision-making process (as current trends suggest may happen sooner rather than later). However, the sheer magnitude of those savings means it is not a trend we are likely to see reverse or even slow down anytime soon. The future is here; whether it is bright or not is for each of us to decide.
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