It's no secret that Insurance technology is on the rise...and it's about time too. It's something that the industry has been lacking and in terms of embracing technology, it has been falling behind somewhat.
Images of the Jetsons and suped up DeLoreans aside, what do these tech advances mean for the industry. Will we even need insurance...
More accurate insurance cover & lower insurance premiums
Insurance companies would give the world for that magic formula that calculates the exact risk that covering someone imposes on their business. If they knew the true likelihood of you making a claim against your policy it would be happy days for everybody.
Now, we all know that isn't possible. Not wanting to oversimplify the mind bending mathematical calculations done by actuaries, but essentially insurance policies are written on highly sophisticated 'guesstimates'.
This is because insurers have huge amounts of general data about 'people like you' but nothing specific about you personally. This means that a number of assumptions have to be made when calculating your premium. People are beginning to identify this as a flaw in the business model and as a result there are some extremely innovative bits of technology coming to market to try and fill the gaps.
One example is Fitsense, who allow insurance companies to personalise their products by providing rich data on an insured's individual health, well-being and fitness habits.
The main goal of start-ups like Fitsense is to reduce premiums, which insurer's are more than happy to do if you're providing them with data they know to be accurate.
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More efficient claims handling
Claims handling procedures are often the main decider for many people when determining whether or not to take out cover. It's really the only opportunity the insured gets to see exactly what they pay for each month.
Technology is improving claims handling in a number of ways. Many insurers, TPAs and local authorities are moving their processes away from the standard excel spreadsheets to more bespoke claims management systems.
Claims management software has been around for quite some time but it was previously only available to larger organisations with huge budgets. Due to further technological advances however, the software that comes 'out of the box' (at a much lower price) is considerably more powerful and useful than that we have seen in previous years.
Claims management software allows organisations to store and analyse more data than ever before. Whole business decisions can then be crafted from these reports and it's now much easier to spot trends and therefore rectify commonly occurring mistakes and fraudulent activity.
Who does the rise in insurance technology benefit?
The short answer is everybody.
Insurers benefit because they're providing more accurate cover at a more accurate price. Technology enables them to settle claims efficiently and therefore retain and gain more happy customers.
The insured also benefits in exactly the same way. If the insurers hold more accurate data about them as an individual, they are less likely to be over-paying for their insurance.
How we've embraced the technological rise at 3Sixty Systems
Then somebody had an idea. Why not take this piece of software to market? So we did. And EvoClaim was born.
If you'd like to find out more about EvoClaim and how we've embraced technology to benefit claims handling, click below:
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