Today’s world is largely digitally-driven – and it’s no different for insurance. Insurers are embracing innovative technologies such as cloud computing, artificial intelligence, and machine learning to offer customers a unique experience that provides a superior customer experience. Although these technologies are driving innovation, some insurance companies are slow to adapt. What’s stopping them from embracing these technologies?
New Auto Tech Impacting Insurance
Vehicle technology that promises to help avoid crashes sounds like a great investment that could save policyholders money on their insurance policy, but auto insurers aren’t quite ready to embrace the technology. Even though the global market for advanced driver assistance systems, ADAS, is expected to grow to $67 billion by 2025, many insurance companies haven’t enacted discounts for policies with the technology.
“Anybody that has been in a car with advanced safety solutions is not going to go back,” said Kevin Clark, chief executive of auto technology supplier at Aptiv. How can insurers update policies and discounts to match the evolving driving technology?
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A Deeper Dive Into Insurance Customers
Insurers can now provide customers with better, more accurate policies thanks to digital transformation. By leveraging new technologies, like Single Customer View, insurers can engage customers by using information they already have access to like account information, policies, and risk assessments. With this technology, insurers can build relationships using real-time data.
“By putting data to work an insurer can improve the overall quality of their underwriting efforts by identifying key exposures that might otherwise have gone unnoticed but that need to be addressed and factored into pricing,” said Mike Hofert, Managing Director of Insurance Solutions at Pitney Bowes.
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It’s Time to Embrace New Technology
It may be surprising to hear that the insurance industry has historically been apart of early technology adoption. Travelers Insurance, for example, was one of the first companies to install an IBM mainframe computer in the 1960s. In the 1970s, insurance companies were embracing time-shared mini-computers and in the 1990s, desktops were being put to good use.
However, since then, the insurance industry has been slow to embrace new technologies that strive towards innovation. Today, to be successful, insurers must once again revisit that explorative spirit and embrace emerging technologies like cloud computing, artificial intelligence, and machine learning.
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