Advances in insurance technology have revolutionized the insurance industry in recent years, yielding significant advantages for insurance professionals. With increased reliance on digital tools following COVID-19, insurance companies and their technological counterparts have seized upon opportunities for improved customer experiences, updated products, and other innovative processes. To help insurance companies make the most of these innovations, we offer our expert predictions for insurance technology trends to watch in 2023.
Investment in Insurance Technology
The turbulence of the economy in 2022 is inspiring insurance companies across the globe to rethink their business practices, including an increased commitment to investing in insurance technology solutions. These investments should help insurers to position themselves favorably in a competitive market by:
- Streamlining operations
- Improving data analysis
- Offering personalized client services
- Collecting and using real-time data
Artificial Intelligence
Artificial intelligence (AI) is among the most impactful of the recent insurance technology trends. Machine learning quickly sifts through large, abstract data stores, extracting pertinent information and discarding what is not applicable. The accuracy and efficiency of these digital processes significantly enhance the quality of services provided, improving both data analysis and customer experience.
AI Improves Internal Analytics
AI insurance technology analyzes vast information stores to quickly identify patterns and create predictions. It enables insurance businesses to reduce fraud, improve underwriting, and manage risk more effectively.
AI Improves Customer Experiences
AI-powered systems, like chatbots, can strengthen customer service in the following ways:
- Providing 24/7 customer service
- Offering personalized responses
- Reducing wait times with automated systems
- Automating routine issues to enable agents to address more complex inquiries
Embedded Insurance
Insurance options are becoming increasingly embedded in products everywhere. When someone books a cruise, they get the option of vacation insurance. When someone buys a computer, they can get an extended policy to protect their purchase. Consumers enjoy the convenience of these options, so insurers who take advantage of this insurance tech trend will uniquely position themselves and stand out from the competition.
System Consolidation
One of the most critical drivers for technology investments is to consolidate existing digital solutions. In the wake of COVID-19, many companies embraced insurance technology out of necessity to accommodate demands for remote work and virtual access to products and services. Most companies did not adequately strategize and plan for long-term IT infrastructure. Companies should streamline their processes by consolidating and simplifying to reduce redundancies, increase efficiencies, and reduce costs.
Cloud Insurance Technology
The use of the cloud is a valuable aspect of insurance technology. Digitalization of internal processes will help companies respond to their clients’ rapidly evolving needs more efficiently. A shift of core processes to cloud technology will reduce the fragmentation of data and enable agents to quickly and efficiently access all necessary customer information. This will help to streamline interactions with clients, providing enhanced customer service. Using the cloud will also increase corporate agility and assist in launching new insurance products.
If you’re eager to stay ahead of the competition and utilize the transformative power of insurance technology in 2023, don’t miss out on exploring the latest trends. Discover how cutting-edge solutions from VCA Software can enhance your processes and customer experiences. To learn more, request a demo.
VCA Software
VCA Software, formerly known as Virtual Claims Adjuster, provides the most intuitive and secure cloud-based insurance claims technology globally. VCA allows you and your business to adapt quickly, improve efficiencies, and take your business to new heights. Our innovative claims tools have a user face so intuitive that new users can start working with VCA with less than an hour of training.
