5 Ways Technology Is Changing the Insurance Industry

4 days ago 34

It’s natural to link technology and artificial intelligence to industries like telecommunications, marketing, and manufacturing. In the insurance sector, perhaps not so much. Clients still receive cards in the mail, meet with agents in their offices, and speak with adjusters for claims. Yet technology is transforming the way insurance carriers provide coverage and how policyholders receive service.

Technological advancements are starting to automate and predict standard insurance-related tasks, from filing a claim to adjusting a policy’s coverage. As the industry embraces things like artificial intelligence, machine learning, and other technologies, the relationship between providers and clients is also changing.

More efficient processes and data analytics won’t necessarily remove the human touch. However, these advancements will increase accuracy, make information more accessible, and have the potential to greatly enhance carrier-customer interaction. From the perspectives of insurance providers and clients, there are five ways tech is revolutionizing the insurance industry.

1. Artificial intelligence is providing faster claim estimates.

Typically when a policyholder files an auto claim, an adjuster needs to be present to assess the damage to the vehicle. The customer initiates a claim online or over the phone and must wait for the adjuster to meet them. An adjuster looks at the car, takes note of the defects and losses, and comes up with an estimate. That estimate may take several days, extending the time from the client’s initial contact to payment.

Meanwhile, the customer is likely without their car or stuck in a vehicle with visible damage. Artificial intelligence is speeding up the time it takes for insurance carriers to provide and process estimates. Instead of waiting for an adjuster, policyholders can instantly use apps to take pictures of the damages they need to repair. An AI-based algorithm comes up with an estimate within seconds. This allows insurance companies to get money to the policyholder or repair shop in a more timely manner.

2. Telematics is determining premiums.

Telematics may not be a familiar term to many insurance customers. But they may know about this emerging trend in auto insurance premiums from their curr...

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