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How insurers are embracing technology to transform the industry

Cubo writersJan 05, 2023

In today's digital age, technology is transforming industries at a rapid pace. From banking to retail, businesses are utilizing technology to revolutionize their operations and enhance customer experiences.

Insurance is no exception. Insurers have recognized the opportunities afforded by technological innovation, and many are actively embracing technology to revolutionize the industry. In this blog post, we'll explore how insurers are using technology to transform the insurance sector and what it could mean for the future of the industry.

Cloud-based systems

Cloud-based systems are a major part of this transformation. As discussed in our last blog post, insurance companies have come to realize that they need a more agile and responsive IT environment. The cloud is one way of achieving this agility since it allows for greater collaboration across geographical boundaries.

It also offers the potential for greater innovation. More than one hundred insurance companies have implemented IBM's Bluemix App Development Platform, which offers over 100 open-source apps and services. Using these tools, insurers can create custom solutions with limited IT resources and expertise; in turn, they can focus on their core business and innovate faster than ever before.

Big data

Big Data technology has been around for a while and is being used by industries like banking and retail. The insurance sector is now beginning to take advantage of this technology with companies like Allianz, Transamerica, and Prudential Insurance all employing data mining tools in order to better understand customer needs and tailor their services accordingly.

The use of big data analytics allows insurers to make more accurate predictions about customer behavior than ever before. Companies can then use these predictions in tandem with other technology such as automated customer service responses or better-targeted marketing campaigns in order to provide a more personalized experience for customers. It is important to note that there are significant challenges that need to be addressed before insurers can fully utilize big data analytics.

The cost of collecting and analyzing large volumes of data is often prohibitively expensive; however, recent developments in cloud computing have made it easier for smaller firms without large budgets to explore the possibilities. With new technologies emerging every day and traditional strategies becoming less effective as consumer preferences shift, it is imperative that companies adapt to the times if they want to stay competitive.

Mobile apps

Mobile apps provide an excellent opportunity for insurers to engage with their customers in a more intimate way. Customers can manage their policies and pay premiums using their phones, and insurers have been able to use that technology as a way to cross-sell other products or services such as car rentals, travel insurance, or home and property insurance.

Black and Gray Digital DeviceSome insurers have even created apps that track driving habits for discounts on auto insurance rates. These innovations can be life-saving for people who might otherwise never have purchased auto insurance because of their age or income level. This is just one example of how innovation is changing the industry by making it easier for consumers to buy insurance.

But we need to think about how innovation will change things for those who work in this industry too: those agents and brokers who stand between us and the product we want. They play an important role - connecting us with companies, providing expert guidance, and taking care of our needs every step along the way. And they're doing so at a time when new regulatory challenges may put them out of business.

Wearable devices

Wearable devices, such as Fitbit and Apple Watch, are poised to disrupt the insurance industry. Insurance providers are starting to use wearable data in order to provide coverage options that better suit individual needs. For example, life insurance companies can now offer policies based on the number of steps a person takes per day, or how many hours they sleep each night. And these new types of policies are not only healthier for their customers; they also provide an opportunity for insurers to attract new customers who were previously unable to afford or find life insurance.

The Internet of Things

The internet of things (IoT) is a collection of items that contain embedded sensors, actuators, and networking capabilities which enable them to exchange data with the internet. In addition to collecting data on their own, these devices can also be used as a bridge to connect other types of machines.

For example, in some cases, a connected car would be able to transmit information back and forth from sensors embedded in its tires or dashboard diagnostics module. IoT devices can range from simple sensors that monitor your home's electricity consumption or water levels, all the way up to complicated systems like autonomous cars or advanced medical equipment like MRI machines.

And with more than 8 billion of these items predicted by 2020, it's no wonder why insurers are looking for ways they can leverage IoT technology for their own business operations.