By Mashum Mollah
2021 is around the corner, and with it comes to various expectations, especially in business. As the days go by, we expect the evolution of different sectors in business. With technology on our side, change is inevitable, and the evidence is evident in various industries.
The Insurance sector has been embracing technological change for a long, and this is one of the key ingredients behind its immense growth. Projections point to the industry growing bigger to even have its foundations on the tech movement we are currently experiencing.
So what does 2021 have in store for us in terms of change in the Insurance industry? Let us look at the possible bearing this sector might take.
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Use Of Big Data
Big data is a concept that focuses on the analysis of a large amount of both structured and unstructured data. It is critical in insurance, and we may expect more of its influence in this business sector. Insurance firms can use big data to understand consumer behavior. Big data also plays a role in risk management, which is a critical part of Insurance when weighing risks.
Profit and loss data can help insurance firms project the direction they will take when they go into business in a particular financial period.
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AI In Insurance
Artificial intelligence is becoming a mainstay in the tech world and is gradually spreading to other sectors, such as Insurance. AI helps in many ways, such as fraud detection, underwriting claims, and handling clients.
There are also AI apps from reputable insurance firms, a good example is Root Insurance. The company has an AI application that measures driver behavior and rates the driving experience by giving points which allows it to reward good drivers with cheap quotes. This app is a precursor to what we may expect from insurance firms in the future, and we have to admit that it is game-changing.
Many firms are also using bots to improve their customer experience. It mostly applies to insurance companies that run websites, where they feature chatbots that will handle any queries that clients have. Speedy delivery and effectiveness are some of the benefits that the chatbots provide to the company.
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A Hop Into Social Media
Social media immensely influenced our communication mode in the past decade, and we can call it one of the most revolutionary trends ever experienced. The power of social media has attracted several businesses into the online world. Insurance firms can also take a page from this book and have social media handles, where they can get more clients and learn more about consumer behavior. This is helpful in loss prediction, and it can also get ahead of fraud as the social platforms are a front for sharing media such as videos and photos.
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Workflow Automation
Many companies are resorting to workflow automation to help curb spending, especially in wages. Automation focuses on reducing paperwork, where companies come up with an efficient filing system, which ensures that there are no records lost. Records are everything in insurance and help them keep tabs on their clients and their respective policies. Keeping up with paperwork and written notices are past their time, and they are prone to losses, something a filing system keeps together.
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Venture Into Blockchain Technology
Blockchain technology, focusing on cryptocurrency, is changing the financial landscape as it is becoming an accepted form of payment. Many individuals and companies are accepting cryptocurrencies in addition to fiat currencies as their preferred mode of payment. There is a chance that Insurance firms may join in on the trend and cash on the increasing value of the crypto units.
Can Insurance firms venture into insuring clients against investments made in cryptocurrencies? This is a question that, hopefully, we will have answers to in the coming year.
Final Word
The insurance industry has been one of the fastest-growing, from being a subsidiary to many businesses to become one of the biggest sectors. You cannot overlook the significance of insurance firms, especially when it comes to lose recovery.
Its fast evolution is evident through the many trends it experiences and highlighted are some of the trends we might see in 2021. While we see some of the trends, such as the use of artificial intelligence, we have our fingers crossed to see if there will be newer ones such as venturing into blockchain technologies.
