How Technology is Revolutionizing the Insurance World

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All content, including blogs, on this site is created by Clearlink Insurance Agency, an independent insurance agency.

From the Internet of Things to abundant new apps, technology is revolutionizing the way we live. It’s changing how we connect with one another, how we discover new things and even how we manage our insurance policies, and it will continue to do so.

As insurance companies, actuaries and agents capture more real-time data, launch mobile apps and embrace technological advances, customers are facing a new world of applying for and using insurance.

Technology’s Impact on Shopping for and Using Insurance

Many technological trends currently affect or will soon change the insurance world. Below we list several of these advancements.

  • Drones. In the wake of natural disasters and other losses, insurance companies seek to use drones for damage assessment. Some states require consent from adjacent landowners to use drones, but assessing damage will be easier, faster and less expensive once companies navigate applicable laws.
  • Self-Driving Cars. Self-driving cars are quickly becoming a reality, forcing the insurance industry into new territory. Questions abound, such as: Who’s to blame in an accident between two driverless cars? With advanced in-car automation expected to reduce the rate of accidents, it may also lower the cost of insurance policies.
  • Wearable Health Monitors. Doctors and health insurers have begun experimenting with wearable monitors to encourage healthy behaviors and evaluate an individual’s health over time. In the coming years, tech watchers speculate, this technology could also help insurance companies estimate future healthcare costs and needs based on past performance and health levels.
  • Telematics. Data tracking, or telematics for this instance, can be used by auto insurance companies to track your driving behavior, from braking and accelerating to how much and when you drive. All in exchange for a potential discount. Analyzing the data may further help insurers develop innovative products and services.

Advantages of Technological Improvements

As the insurance world continues embracing new technology, consumers may benefit in several ways.

  • Tailored Insurance Products. From tracking our specific driving habits to analyzing comprehensive data, technology helps insurance companies understand customers’ needs and offer tailored products and services. Highly requested add-ons or ancillary services may become readily available as insurance companies quickly cull and review customer feedback.
  • Timely Responses. By connecting technology with vehicles, medical devices, drones and other gadgets, insurance companies could offer greater convenience and speed when it comes to claims, inspections and more.
  • Enjoyable User Experience. The beauty of apps and modern websites is their ease of use. A focus on user experience means more intuitive navigation and helpful information so policyholders may spend less time on the phone scheduling appointments or paying bills.
  • Reduced Fraud. Not including the health insurance industry, data suggests that fraudulent insurance claims cost the average U.S. family between $400 and $700 per year in increased premiums. Advanced data collection methods help insurance companies crack down on fraud. Fewer fraud cases help reduce headaches for both the company and customer.
  • Cost-Effective Rates. All of these benefits — from more data and automation to efficient customer service and reduced fraud — can cut down on costs, and may result in lower policy rates for customers.

The Future of Insurance

Mobile devices, healthcare apps and data rank as the top three drivers of the technology industry’s growth, making it likely that insurance innovation will continue in these same fast-growing areas.

Looking forward to the future, we can only hope that our ability to innovate will provide continuous growth and opportunity, and create more transparency for a smooth and user-friendly insurance experience.

Have you noticed any recent changes in the insurance industry? What’s one change you’d like to see technology make to the current state of insurance? Share your thoughts with friends and family by posting this article on social media!