How Technology is Changing Insurance for the Better
Since Benjamin Franklin organized the first American insurance company in 1752, the world of technology has seen drastic changes. And every day there seem to be newer and faster ways that technology is changing the world, including the insurance industry.
Some would say that the technology at the fingertips of insurers now would have Franklin rolling in his grave.
Over the course of time, everything from the cell phone in your pocket to your home security system began to be covered by insurance. The insurance industry alone is worth well over a trillion dollars annually. Though you’d think that 200 years of experience would eliminate customer service issues, we all know how difficult it is to deal with insurance companies.
However, thankfully technology is beginning to change that.
No longer do we need to wonder why car insurance companies ask for social security numbers, or why we can’t get full policy information at all times. In every other business and industry, tech has vastly improved the workplace and its effect on consumers.
Technology has improved the medical field so rapidly that innovations occur daily. And finally, it has pushed insurance off of the little island it stood on for years as other industries developed.
Home insurance is seeing a drop in average price thanks to the innovation of security systems. Auto insurance premiums are dropping due to AI development in vehicles such as hands-free Bluetooth, auto-braking systems, and lane change warnings.
Operations at insurance companies are moving forward thanks to mobile apps, paperless billing, and more in-depth data tracking. This has led to lower overhead costs and impressive innovations in all branches.
Insurance is no longer in the dark ages of sending 50-page packages in the mail. Technology is changing the industry and making it better in the process.
Artificial Intelligence and Insurance
Not long ago, if it was time to look for a quote, you’d likely be spending hours on the phone treading your way through automated voice messages. Today, technology allows insurance companies to push their operations forward, give you better coverage, and process claims quicker which, in turn, makes the company more profit while giving consumers lower premiums.
Melissa Thompson of Diabetes365.org notes the following ” many life insurance providers will now approve people with Diabetes on a non-medical exam basis. Life insurance for type 2 diabetics can be approved by having companies simply review your prescription history, using AI.”
The driving force behind the increase in productivity is artificial intelligence. AI has changed every aspect of insurance, from filing a claim to receiving payment. While it may be an issue for some people who believe that AI is taking away jobs, it has really created a more reliable, timely, and smooth process.
AI serves as a speedy way to buy a new policy, search for discounts, and settle claims. Beyond that, however, it will be able to take historical data, driving records, and more to tailor policies to each consumer. This will create a more personalized approach and land enormous savings for auto policies on those who maintain a clean driving record or those with security systems throughout their homes.
Broker Assistance and Insurance
Brokers help in every form of commerce from financing small businesses to assisting with policy questions. Artificial intelligence has replaced some of the duties the average broker once faced. However, it by no means is rendering the job obsolete. In fact, the job is becoming more efficient, thanks to technology.
Assisting the customer with policy information, claim processes, and general help is the main goal for an insurance broker. The title used to be a difficult one that involved pulling numbers, records, and other information to get a glimpse into consumers’ lives.
As opposed to simply giving new clients pricing information, the broker can now use large data collected by technology to further help policyholders. The more knowledge an insurance broker has about the customer, the better they can choose the right policy and give them a tailored price that fits their needs.
Security and Fraud in Insurance
Each year, the total cost of non-health insurance fraud totals an impressive $40 billion. According to Insurance Information Institute (III), insurance fraud is defined as a deliberate deception against or by an insurance company or agent for the purpose of financial gain. The issue has long been a problem and continues to present problems for both insurance companies and consumers daily.
Technology is improving the likelihood of catching abnormal patterns that are linked to falsified claims. Not only does this save insurers millions of dollars and allows them to increase innovation and productivity, but it also saves you (the insured) millions.
Time is money. The use of tech to assist in catching fraudulent claims will save brokers’ time. Saving this time means that it can then be spent on improving business, helping the consumers who have real claims or need new policies, and of course, helping people find discounts on premiums.
While fraud is an enormous issue, the security of your financial and personal information is equally as essential. Going totally paperless allows you to set up extra security questions on your profile, use your Face ID to operate the mobile app, and avoid lost bills or statements.
Additionally, the advancement in technology of the insurance companies’ systems provides increased security to all of their sensitive information. Security breaches, including the dark web snatching data from insurance companies, are long gone; the tech used in modern-day systems is keeping the information in and hackers out.
Tech is Moving Insurance Forward
Autonomous vehicles, SmartHomes, and medical advancements have made auto, life, and home insurance cheaper than ever for consumers. Yet, it isn’t the only way insurance is changing thanks to technology.
Just like every other industry, insurance is rapidly changing operations due to the advancement of artificial intelligence.
Data can be collected faster, claims are processed through a mobile app at a moment’s notice, and the broker position is more efficient than ever. Though tech has done some wrong in our world, it seems to be changing the insurance industry in an incredible way for both insurers and consumers.
Ethan Lichtenberg writes and researches for the auto insurance comparison site, AutoInsurance.org. He specializes in insurance and business writing in sunny Tarpon Springs, Florida.