Emerging technologies have infiltrated and disrupted many industries. Yet, unlike some of the more notable disruptions, the emerging technologies in the insurance business, including annuities, may evolve the existing industry rather than totally revolutionizing it. That doesn’t change the fact that 90% of executives fear losing business to emerging companies.
New technologies or innovations are often called “InsurTech” for short, and they are challenging some longtime industry standards. They’re pulling in new data to create insights and are focused on meeting the needs of new tech-savvy consumers.
So what’s coming down the pike that could disrupt your practice over the next few years? Here are three ways InsurTech may change the future of your business.
Expect more, and better, data-driven insights.
The more data your firm has on your clients, the more you will be able to provide them with products suited to their needs. You will also be able to use data from apps and smart devices, such as Fitbits, to create smarter customer and risk profiles. This type of risk analysis will create insights that go deeper and are more personal than traditional data sources provide.
Artificial intelligence will help your clients troubleshoot.
Look for more incorporation of artificial intelligence over the coming years, including the areas of policy and contract writing, and product support, which will allow for around-the-clock troubleshooting and advice for consumers.
Artificial intelligence will anticipate needs.
Artificial intelligence will someday help you to better anticipate your clients’ future needs or goals. This would help clients and financial professionals to be better aligned on services and future planning. AI could create more efficiency in the underwriting process as well, even by searching for emerging risks that will need to be insured.
Two things you can do today
InsurTech’s possibilities are vast. Read more about the future from PwC and Deloitte.
Think about which InsurTech trends could benefit your business and start considering strategic partnerships or technology investments.