The insurance sector has embraced technology in all vistas of its operations including insurance claims to ensure better customer services and stand out in the competitive market. There has been a steep spike in the settlements and in the number of policyholders in recent past due to various risk factors like natural calamities, man-made conflicts and more. From drones for inspecting the roof of houses to bots used in insurance claims processing and artificial intelligence to enhance customer experience, a lot of technological innovations has been sweeping the insurance sector. Here are the top 9 insurance claims processing trends to watch out for.
Top 9 Insurance Claims Processing Trends
1) The Insurance Industry and the Evolution of Automobiles
There are a few key emerging insurance industry trends driving major changes in automobile insurance, which is the top consumer product for most retail insurance companies. Ridesharing (fewer people owning cars), semi-autonomous cars in the short term/autonomous cars in the long term, are transforming the whole landscape for the insurance industry, eroding premiums and in some cases reducing the size of the market. Businesses such as Lyft and Uber could have a big and lasting impact on the insurance industry because of the emerging requirements for ride-sharing insurance. The whole process of standardizing insurance for autonomous cars, however, is certainly going to take some time. Vehicles would need at the least a way of detecting whether the fault lies with the driver or with the systems itself.
2) Machine Learning and Automation
Insurance companies are striving to attain higher efficiency through machine learning and automation in all fields’ right from distributing policies efficiently to optimizing operational costs and offering premium quality multi-channel customer service at attractive rates. Insurers will be exploring the possibility of machine learning and automation more in the days ahead. The development in Artificial intelligence has made it possible for insurers to automate complex processes such as property assessment, receiving customer insights, personalized customer interactions, fraud detection, and claims verification and processing.
3) Cyber Security
Another major emerging insurance claims processing trends in the insurance industry is cybersecurity that will safeguard the interests of both the clients and the company at the same time. Insurance agencies are at more risk of being the targets of hackers as it holds enormous amounts of sensitive personal information such as personal properties, health, etc. Cyber security will make sure that the personal information and confidential details of their clients are not breached. The emergence of Telematics has ensured better security against fraud and in better handling of claims.
4) Insurance Distribution Channels
Insurance companies are utilizing multiple parallel channels to distribute insurance prod