From flying cars to artificial intelligence, the human race has made numerous predictions of what the future holds. Insurance technology is advancing at a rapid pace, yet, the insurance industry has historically been slow to adapt and move with the trends.
However, now the insurance industry is beginning to transform. If you’re curious what the future has in store, here are a few insurance advancements you’ll see in the next 10 years.
Quick Article Guide:
- Wearable Biometric Sensors
- Decrease in Brick and Mortar Locations
- The Rise of Artificial Intelligence
- The Use of Big Data
- The Ability to Pinpoint Fraud
- The Bottom Line
Wearable biometric sensors, such as Fitbits, will give insurance companies new data on the health of their clients. These sensors will track heart rate, exercise habits, vital signs, blood pressure, and more. Essentially, this insurance technology advancement will change the way health risks are evaluated and underwriters assess consumer policies.
For example, Vitality Group is leading the charge in wearable biometrics by creating the Vitality wellness program. This innovative program connects policyholders with tools and resources they can use to set health goals and track their health statistics. They can monitor their wellness and discover the best resources to help them achieve ultimate health.
These tools automatically integrate with the policyholder’s wellness solutions. Based on the policyholder’s activity, they can earn points, rewards, and discounts off services or other offerings. In addition to rewards, policyholders can monitor their wellness and activity to discover the best solutions to achieving and maintaining a healthy lifestyle.
Vitality Group has partnered with other insurers including Prudential of the U.K and John Hancock, to bring this program to more consumers across the nation.
These insurance advancements are mutually beneficial for the insurer and policyholders. They give policyholders the opportunity to improve their health, extend their lives, and lower health associated risks and claims for insurance companies.
Millennials are influencing the extinction of brick and mortar insurance locations. Gone are the days when consumers would visit their local insurance office for advice and guidance. Consumers no longer want to venture to their local insurance office to shop policies or seek information. They want to communicate with the insurer right from their mobile device and receive all the information they need instantaneously.
The use of mobile phones eliminates the physical barriers for consumers in search of insurance, while simultaneously lowering operational costs for the insurer.
This advancement will help insurance companies provide better accessibility, faster service to clients and prospects, and allow insurers to offer more affordable programs. Mobile technology is assisting in the spread of on-demand insurance services which can be tailored to any consumer’s needs.
Mobile technology will help larger sectors of consumers select when they want coverage, how they want coverage, and how long they want coverage. The conveniences of technology are making insurance more accessible and opportune for other demographics.
Using mobile technology can also help insurers better interact and communicate with their policyholders. For example, in the future mobile signals may detect a walking hazard in a designated location, such as a patch of ice where people have fallen. If a policyholder is in proximity to this hazard, insurers will be able to alert the policyholder of the potential danger.
Communicating with policyholders in this manner will create an increased synergy and transparency for insurers and consumers.
Artificial intelligence allows software to demonstrate human-like intellect such as learning, planning, problem-solving, and reasoning. Applying artificial intelligence to the insurance industry has the opportunity to yield cognitive agents. By encouraging consumers to interact with a cognitive agent, insurance companies can collect a large amount of data. This data will give them a better understanding of the consumers’ insurance needs and which products will best serve them.
For example, cognitive agents could automatically connect with a wearable biometric sensor. Then data would be automatically applied to the consumers profile for later use or a new insurance assessment.
According to a study conducted by Accenture, 82% of insurers agree AI-automation will be applied to the majority of insurance business within the next 5 years. This makes it clear that AI will significantly impact the insurance industry in years to come. It may be one of the fastest changing insurance advancements you’ll see during the next 10 years.
Policyholder data is everywhere. From your Facebook newsfeed to your email, insurance companies have access to incredible amounts of information. Even though insurance companies probably won’t sort through your social media feed, they can benefit from acquiring large amounts of data.
Insurance companies can partner with biometric senor or mobile technology companies to collect enormous amounts of data from policyholders’ daily activities.
According to the International Data Corporation, the digital universe will continue to double every two years. With this increase in data, insurance companies have the opportunity to tailor every aspect of their business and give consumers the exact product or policy they need.
Did you know insurance fraud costs the average U.S. family between $400 and $700 in increased premiums per year? As fraud continues to rise, so will insurance premiums.
With the use of data analytical tools, underwriters and claim adjusters will be able to detect fraudulent activity well in advance. Detecting fraud and suspicious activity in advance will limit the additional premium amounts to the typical customer.
This insurance advancement will allow insurers to balance efficient service without risking fraudulent claims going unnoticed by human underwriters and assessors. This advancement will, in turn, give policyholders the best of both worlds.
Even though the insurance industry has been slow to adapt, insurance companies will now be defined by the technology they adopt. The insurance advancements you will see in the next 10 years will help companies tailor your policy to your wants and needs. You will no longer be plagued by the frustration and confusion of finding the right policy.
At Term Life Advice, we work with 63 top-rated life insurance companies to help our client’s find the most affordable life insurance coverage. We also offer no exam life insurance if you’re schedule is too full to meet with a nurse, or if need insurance in a hurry to collateralize a business loan. Give us a call today at 855-902-6494 for some accurate rates to help you get started, or you can request an online quote below to instantly compare your options.