The ascendance of cloud computing has radically transformed businesses of all stripes by encouraging disruptive new entrants, and this is particularly true for the insurance industry. New cloud-based technologies and processes are leading a revolution in claims processing for insurance providers, which is often led by insurtech firms.
It’s helpful to understand how these insuretech pioneers are using technologies and processes to understand what is already upon us — as well as what the future holds for greater developments and insights. To that end, here are five emerging technologies that insurance industry leaders are incorporating into their processes:
1. Natural Language Processing (NLP)
All consumers are familiar with the emergence of voice-activated services like Alexa and Siri, but many may not recognize (or understand) the technologies that make it possible. NLP can understand and track information in many forms, and it goes far beyond voice bots to include enhanced integration of standard and non-standard written documents. The use of NLP not only increases the amount of accessible information, but it also helps to increase the speed and accuracy of many business functions.
2. Robotic Process Automation (RPA)
As the name suggests, RPA addresses manual tasks and functions that are repetitive by nature and finds ways to form them into programmed systems. In that regard, it is one of the best uses of technology because it reduces low-level or predictable tasks in ways that assist and augment the functions that people can perform. This not only lessens the impact on employees but also helps to deliver a better customer experience due to increased speed and efficiency.
3. Data Analytics
We may be living in the golden age of data, but it’s the analytical tools that are applied to the raw data that produce the true treasure trove of insight. As the tools for collecting data have advanced, so too have the methods for generating insight and innovation. Beginning with the revelations of descriptive analytics and progressing all the way to the advanced insights from prescriptive analytics, the full range of tools is behind the gains in understanding.
4. Machine Learning (ML) and Artificial Intelligence (AI)
No area of technology generates more attention these days than ML and AI — and with good reason. The dramatic increase in both the amount and types of data not only drives more traditional forms of data analytics, but it’s also the rocket fuel that propels the super-powered insight that derives from ML and AI. From detecting fraud to predicting risk and driving recommendation engines for claims evaluation and adjusting, the role and importance of ML and AI will only increase in the years to come.
5. Other Emerging Technologies
A number of new and emerging technologies are also making an impact on the insurance claims process:
- Virtual Loss Assessment (VLA): Using a suite of new technologies, VLA makes it possible for insurance customers to file and manage claims on a 24 / 7 / 365 basis. This provides an easier and faster way for clients to interface with their insurer, thereby increasing consumer satisfaction, and has the benefit of requiring less direct human intervention on the part of the insurance company while integrating directly into key systems.
- IoT and Smart Sensors: One of the elements that helps drive VLA are IoT and smart sensors. These devices can take many forms, from home security systems to information systems in vehicles, and they are indispensable in assisting with First Notice of Loss (FNOL). By delivering more complete information in a timely manner they are a boon to both insurers and consumers.
- Drones: Drones are part of the VLA and FNOL processes, but they can do much more — including inspections for underwriting. They provide visual evidence and confirmation in ways that previously required multiple personnel on the ground or were unavailable altogether due to harsh or dangerous conditions.
All told, a host of other emerging technologies will also deliver this potent mix of lower cost, enhanced information flow, and improved performance.
The Future of Insurance Claims Innovation
Claims are at the forefront of transformation in the insurance industry and are often the point of entry for insurtech disruptors as they strive to take on entrenched incumbents with new technologies. The technologies are potent and digital natives have an early advantage when it comes to deploying new solutions for old situations. Fortunately, incumbents can learn from these trailblazers as they look to forge a successful path of their own. While insurance is often perceived as stodgy and conservative by the general public, the industry, in fact, has a rich and deep history of innovation and evolution. These five technologies are an important ingredient for the ongoing growth of insurance incumbents.
Maven Wave, an Atos company, helps drive the future of enterprise and opportunity with innovative business outcomes, fueled by cloud, with risk and innovation top of mind. To learn more about innovation in insurance claims, download the white paper “The Future of Insurance: How Insurance Leaders Can Stake Their Claim” today.
Get the latest industry news and insights delivered straight to your inbox.