A handful of technology trends are accelerating and are poised to transform the basic nature of insurance. In the case of auto insurance, risk tends to shift to software that is known to be behind cars that drive themselves along with artificial intelligence, which you might also know as AI, from drivers. Real-time sets of data, satellites, and drones will provide insurers visibility into the facilities and the risk associated with them in an unprecedented way, which might lead to increased accuracy.
Claims processing after any catastrophes due to natural causes will be infinitely scalable, automated, and considered lightning fast.
The technologies behind them are already known to have an individual existence, and innovative offerings can become mainstream in the coming decade. Various analyses have explored the overall impact of rapidly accelerating trends and being the most relevant about the provision of competitive advantage. Out of such trends, five of them are poised for reshaping the landscape of insurance:
- Applied AI
- Future of connectivity
- Trust architecture
- Distributed infrastructure
- Next-level automation
The prevalence of such technologies also directly points to the fact that the insurers could end up facing an increased level of competition for a completely new wave of attackers on a digital platform, as evidenced by a huge number of insurers found in the past few years.
For surviving, incumbents will be required to adapt their products, core processes, and operating models to an entirely new reality. All executives are expected to understand the overall impact of these technologies. They should also ensure that the organizations are properly positioned to unlock the true potential locked within them. The leaders will require letting go of the entrenched business models and perceptions and embracing different ways to distribute and manufacture products that are fundamentally different in many cases.
Trends in tech that might shape the future of insurance
A range of factors has been examined to identify the ten technological trends that are known to matter the most for keeping the top executives across various industries. For every single trend, a momentum score is calculated that is based on the overall rate of growth of the technologies that are underlying such trends, derived from a deep analysis of various proxy metrics such as:
- Patent filings
- News mentions
- Total private investment
- Online search trends
- Companies making investments
These scenarios are not based on science fiction. The life insurance industry will also bring the products wrapped by the market that is known to seamlessly adjust the coverage based on the evolving needs and requirements of the customers due to Technology Insurance.