From policy purchases to claims, technology is transforming the way consumers engage with their life insurance providers. Instead of one-size-fits-all vanilla products hard-pushed by on-ground sales teams, consumers now demand policies and services that cater to their specific lifestyles and needs. At the same time, insurers need to continuously work on operational efficiency enhancement, strengthening the risk management framework, and designing a competitive customer experience.
- Artificial Intelligence and Machine Learning: Gone are the days of tedious paperwork and months-long claims processing in the life insurance industry. With the advancements in technology, especially Artificial Intelligence (AI) and Machine Learning (ML), the insurance sector is experiencing a major transformation. For example, AI-powered document scanning and optical character recognition (OCR) technologies can digitize physical documents. Additionally, AI algorithms can flag potentially fraudulent claims, and verify the authenticity and completeness of claim-related documents. These cases lead to a simplification of claims processing and enable automation, reducing manual work and improving efficiency.
Not only this, but the new player in the market, OpenAIs, ChatGPT, when paired with AI and ML-powered chatbots and virtual assistants, can also help in ensuring a seamless customer experience. This can be done by assisting consumers, and providing quick and personalized responses to their inquiries, and guiding them through complex policy information.
2. Internet of Things (IoT): The Internet of Things (IoT) has revolutionized the way we live and now, the way we insure. From monitoring our steps to controlling lights with virtual assistants, IoT sensors are everywhere, including wearable technologies that collect a wealth of health-related data. This information offers valuable insights into health mortality-related risk factors and can be leveraged to incentivize and improve healthy behaviour in the society.
Insurtech companies are leveraging this data to launch health apps and medical-grade sensors that aim to keep people healthy and offer bundled life insurance policies with health platforms. This integration of wearable technology and behavioral data holds tremendous potential for the health and life insurance industries. It can improve underwriting, pricing, product innovation, and customer engagement, making insurance more personalized and effective than ever before.
3. Cloud Computing: Traditionally, life insurance companies store customer data and policy information on local servers and data centers. This required significant investment in hardware and IT infrastructure and limited the ability of companies to access data from remote locations. However, with cloud computing, insurers now store and access customer data and policy information from anywhere with an internet connection. This technology has enabled companies to easily share information with customers, business partners, and employees, improving process speed, collaboration, and decision-making. Top of Form
As technology continues to evolve, we can expect more innovative products and services that will improve the customer experience and deliver value to policyholders. The future is bright for India’s life insurance industry, and we are excited to see what the next wave of innovation will bring. So, buckle up and get ready to see how technology is transforming the life insurance industry in a big way!