The insurance industry is all set to welcome a significant revolution as insurtech implementation enters a new stage.
FREMONT, CA: Dramatic tech-transformations are reshaping the insurance space by empowering the insurers with features such as enhanced pricing, higher operational efficiencies, and customer-centricity. There are several trends and tools that the insurance sector is well-aware of to address the ever-evolving consumer expectations. Here is a compilation of the latest insurtech trends.
Internet of Things (IoT)
Many new cars have security technology built-in with semi-auto-driving options. More and more cars can interact with each other on the highway in the coming years to reduce traffic accidents and deaths. Some add-on devices enable insurers to gather and charge data about riding practices. Nearly $1.5 trillion of extra income could be produced by 2030 from on-demand mobility and data-driven services, according to McKinsey report.
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Use of Connected Technology
A large number of vehicle insurance businesses will quickly be providing vehicle insurance based on usage. The mobile phone applications and other sensors will monitor how driving happens in a UBI scheme and calculate the price charged by the businesses accordingly. Along with more and safer for-driver discounts to avoid accidents, this usage-based insurance will also be impacted by when, where, and how you drive. It's not just established businesses that will profit from this trend as many startups are entering the UBI game.
Tech-Empowered Insurance Agents
Sensors, robots, algorithms, and machines are equipping modern insurers. The emerging innovative techniques will empower the insurance agent to serve their customers more effectively.
The above developments show that the insurance sector can create a billion-dollar value. The key is to know how and when to use current and new techniques to unleash the essence of insurance technology to the fullest.