Navigating the New Age of Tech - 4 key technology advancements
Software advancements and new technologies are emerging at an unprecedented pace. This, combined with heightened cybersecurity risks, increased customer expectations and tightened economic conditions, is placing immense pressure on the Insurance and Insurance Software industries. Insurance companies are being forced to evolve to keep up.
Advancements in Artificial Intelligence, such as Machine Learning (ML) and Large Language Models (LLMs), and other technologies like the Internet of Things (IoTs) and Telematics are not only complex to understand but can require substantial investment.
We’ve outlined how 4 key advancements are changing the Insurance landscape below. To find out more about these technological trends in insurance AI and technologies, download our industry insights.
1. Artificial Intelligence (AI)
AI is being embraced in the Insurance industry for use in internal processes, to streamline claims processing, improve efficiency, reduce manual tasks and the chances of human errors. Whilst on customer-facing applications, the use of chatbots based on large language models like GPT-4 (ChatGPT) are changing customer experiences.
2. Machine Learning (ML)
ML - a type of AI - is providing Insurers the ability to automate many manual processes allowing them to speed up claims processing, improve risk assessment, minimise claims fraud and enhance customer experience. This form of predictive analytics enables Insurers make automated data-driven decisions.
3.Large Language Models (LLMs)
LLMs are being incorporated to increase efficiency and improve customer experience by automating customer and broker interactions via chatbots, email, and virtual assistants, providing 24/7 support, and answering queries related to policies, claims and payments. Insurance companies are also able to assess risks and determine premium rates more accurately by analysing a vast amount of text data from various sources like news articles, social media or user inputs available through LLMs.
4.Internet of Things & Telematics
Telematics - the use of sensors or GPS in a motor vehicle, bluetooth or phone application - are being developed to introduce usage based and more personalised policies, where drivers can even be rewarded for safe driving. Insurers are also able to proactively prevent losses by monitoring customer behaviour. Further advancements include connecting various sensors and devices within a vehicle, forming a network of devices that communicate with each other, collect data, and interpret that data to provide actionable information e.g. detecting damage.
It is crucial to note that just because a technology is popular or trendy does not guarantee that it will bring value to an organisation. The adoption of new technologies should be based on their ability to solve actual problems while maintaining a reasonable cost and feasibility of implementation within the organisation's existing software infrastructure.
EstImage helps insurers understand and adopt new technologies, enhance digital capabilities and improve operational efficiency. Insurers that move with evolving customer needs and technological advancements are better positioned for success in a rapidly changing industry landscape.
To find out more about how best to utilise these technologies, download our industry insights and contact the EstImage team today.