How Can Insurance Companies Stay Ahead of the Curve: 5 Examples Beyond Fintech and Insurtech
Updated: Sep 2
The insurance industry is teaming up with insurtech companies to revolutionize the way it does business. But to truly stand out in today's fast-paced market, remain competitive, and meet customers' ever-changing needs, insurance companies must also look beyond their traditional partners and embrace a forward-thinking attitude, like exploring solutions from other industries in order to stay ahead of the curve. A positive mindset and a willingness to look beyond traditional insurtech applications can help the insurance industry find new and innovative ways to improve its products and services. It's an exciting time for the industry, and the possibilities are endless.
Following are 5 examples of potential insurance industry uses of non-traditional insurance technologies:
Think outside the box
1. Virtual and Augmented Reality technologies (VR & AR)
The insurance industry could use AR and VR technologies for a variety of purposes, such as performing remote assessments, training employees, providing enhanced customer service, marketing, risk assessment, and claim processing by creating virtual models of accident or disaster locations.
For instance, risk assessments can be related to different properties and activities, such as natural disasters, flooding, and other hazards. Using this information could help predict claims and inform the underwriting process.
2. 3D printing technology
3D printing technology has the potential to benefit the insurance industry in multiple ways, such as creating accurate replicas of damaged parts for claims assessment and estimating costs, assisting insurers to quickly and accurately assess risks, and offering the right coverage. Insurers can also create customized devices for telematics data gathering. These devices are mounted on vehicles or other assets and collect specific data. Insurance companies can use this data to provide better coverage and reduce claims costs.
Cleantech technologies cover renewable energy, water, and waste management, sustainable transportation, and building technologies. Cleantech solutions could bring multiple advantages to the insurance industry such as reducing the environmental impact of this industry, increasing resilience to natural disasters and extreme weather events, and improving underwriting. A good example would be to use renewable energy technologies to power insurance company buildings to reduce their carbon footprint and operating cost. Additionally, sustainable building materials and practices in building construction make buildings more resilient to natural disasters and extreme weather events. This can help insurance companies to reduce claims and underwriting risks, and create more sustainable products and services for their customers.
The utilization of drone technology has multiple possibilities for the insurance industry such as claims assessment, risk assessment, and providing better customer service. Drones can be used to gather data and images from hard-to-reach or dangerous locations, allowing insurers to quickly and accurately assess damage and estimate costs which can speed up the claims process. Insurers can use drones to perform post-disaster assessments of large-scale property damage, such as inspecting a group of buildings or a large area of land in the aftermath of a natural disaster.
5. Quantum computing
The insurance industry could leverage the power of quantum computing for various purposes such as optimizing pricing and risk management, improving fraud detection, and forecasting future events. Moreover, quantum computing is capable of performing complex data analysis, modeling, and simulations that are beyond the capability of traditional computing methods.
Quantum computing algorithms can be used to optimize pricing and risk management, by identifying patterns and correlations in data that traditional computers might not be able to see. It could also be used to enhance fraud detection by analyzing large sets of data and identifying potentially fraudulent activities in a way that traditional computers might miss. Additionally, quantum computing could be used to perform complex simulations to estimate natural disasters and their potential impact on policyholders, help insurers develop better risk management strategies, and provide more accurate coverage.
The insurance industry is constantly evolving and adapting to new technologies and trends. By working with insurtech companies, insurers are able to create new products and streamline processes to stay competitive in the market. However, in order to truly differentiate themselves, insurers must also look beyond their traditional partners and embrace a forward-thinking attitude. By keeping an eye on the latest technology trends and being open to new ideas, insurers can stay ahead of the curve.
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