The insurtech sector has been changing enormously in recent years as the industry undergoes a well-needed and long-overdue overhaul. Modern technologies like artificial and visual intelligence have become commonplace as businesses improve their processes.
With more companies looking to incorporate modern technology in their operations, we’re likely to see the insurtech sector continue to change during 2022. As bigger companies slowly adapt, smaller businesses can get ahead by leveraging the newest trends.
With that in mind, here are some of the key technologies and trends that you shouldn’t miss in 2022.
IoT in insurance
The Internet of Things (IoT) is made up of billions of physical devices connected to the internet to transmit data with other devices. This has become integral to the insurtech industry, as we can improve many of the traditional insurance processes with help from IoT.
IoT allows insurers to make more accurate decisions quicker than traditional claims. By using built-in sensors, wearable technology, and dashcams, insurance providers can automatically collect data at the time of an incident. An AI system — such as an insurer’s app — can instantly access this data and make the claims process easier for the customer and insurer.
Amplified AI and hyper-personalization
For a long time, customers’ calls for modernization and personalized services went unanswered in the insurance industry. This unfortunately added to the feeling of distrust many customers have towards their providers. Switching to a customer-centric approach can help combat that feeling of doubt.
One of the key parts of customer-centricity is a personalized service. Customers want to feel like individuals, not just another face in the crowd. Personalization is the best way to achieve that.
We often focus on AI’s ability to automate tedious tasks, but it can be a secret weapon in the battle for customer satisfaction. Simple AI processes can identify key information about a customer, such as type of vehicle, age, and location, to build personalized plans for every customer. This helps attract new customers and keeps existing customers happy because they only pay for the features they really need.
Companies can use chatbot AI systems to personalize the customer service side of insurance. As the chatbot talks to the customer, it uses machine learning to identify ways to personalize the conversation to make it feel natural.
Visual intelligence can also play a crucial part in customer-centricity. A VI-powered app can make it feel like the customer controls their claim while guiding them through the steps needed to process the claim.
The way we pay for things has dramatically changed thanks to contactless technology. We expect to see further changes in 2022 as the use of cryptocurrency continues to rise.
Smaller insurance companies like Metromile are already embracing Bitcoin for premiums and payouts. With more companies looking to create their own cryptocurrency, businesses could start offering payment methods that exceed our current imaginations!
While most companies probably won’t be rolling out a full cryptocurrency service in 2022, expect to see a lot of research and development money going towards the future of payment methods.
Blockchain and Distributed Ledgers
It’s no secret that customers can get fed up with intermediary services like brokerages and agents. Recent advances in technology have made it easier for businesses to bypass these services and do business directly with their customers. This model is cheaper for companies to implement and reduces premiums for customers, a win-win situation.
The use of blockchain and distributed ledger technology (DLT) will increase during 2022. Blockchain is a data structure that enables the creation of a digital ledger of transactions, and lets users share them among a distributed network of computers. It’s a big buzzword in the cryptocurrency market at the moment, but blockchain has far-reaching implications for many sectors, including insurtech.
While the technologies are still being developed and perfected, blockchain and DLT can offer greater efficiency, security, and transparency in operations. Insurance service providers can use blockchain technology to cut down on administrative costs, verify payments made by third parties, and install a layer of protection from fraud.
Distributed Ledger Technology (DLT) can help streamline claims processing, boost cybersecurity protocols, and even speed up payment times. Meanwhile, blockchain can help to build trust through the use of public ledgers and fortified cybersecurity protocols.
Use of the cloud
There are few inventions more revolutionary than the cloud. The way we operate has been transformed since its conception, even if we don’t notice it. From social media to data storage, nearly every service we use relies on the cloud. And according to a report by Gartner, global end-user spending on public cloud services is predicted to exceed $480 Billion in 2022.
Despite this, many of the big players in the insurance industry have been slow to embrace cloud technology. This left a gap in the market for customers who want their insurers to offer modern solutions. Thankfully, many smaller insurers have found ways to fill that gap.
To ensure they aren’t left behind, we expect to see companies double down their efforts to modernize their processes and switch to cloud-based architectures. This will help attract new customers looking for modern convenience while offering a higher level of data integrity, speed to market, cost optimization, and innovation.
Keep up with the newest trends with Bdeo
As we head into 2022, we expect to see the insurtech industry continue to change. And we’ll no doubt see new trends emerge as the industry keeps modernizing.
While it can be challenging to keep up, the companies on top at the end of 2022 will be the ones who keep on top of new developments and embrace new technology like Bdeo’s visual insurance.
Request a demo today to see how Bdeo can bring your company into the modern era.
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Visual Intelligence applied to the insurance industry
Artificial Intelligence in general, and Visual Intelligence in particular, are very present in our days. Perhaps, much more than we imagine.