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Top 4 Insurance Automation Trends in 2023
Top 4 Insurance Automation Trends in 2023

December 22, 2022

RPA

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The RPA in the insurance industry has demonstrated incredible resilience and adaptability over the last few years and with the maturity of digital technologies, insurance carriers have tapped into new capabilities to drive both operational efficiency and transformation.

The past year has been filled with both positive and negative experiences. 2022 saw rising premiums in the personal and commercial lines of business and challenges in the form of crises. It also saw new market entrants who are finding it difficult to actually reimagine the insurance process. Amid all the digital transformation, insurance carriers need to prioritize their talent pool, prioritizing their technology strategy, 

Also, employee expectations have also pushed the insurance leaders to move from “good to have” parameters to the “we need it all” bucket. Shifting these parameters is all that insurance leaders need to focus on to create an even better customer experience. Because irrespective of organization, every enterprise's main aim is to make the services easily accessible and convenient for customers. Let’s look into the upcoming technology trends to look for in 2023 to create a better workplace and customer experience. 

Emerging Trends for Insurance Industry in 2023

 

1. Artificial Intelligence for Predictive Analytics

The profitability of an insurer largely depends on how the company works with information, analyzing it, and making forecasts. Therefore, firms are trying to implement data analytics on a large scale and Artificial intelligence is one of the technologies that help to do this efficiently. As per McKinsey's report in 2030-2040, 10% to 55% of insurance processes like underwriting, claims processing, record keeping, and invoicing will be reimagined using automation solutions. But how does AI make this possible? 

The answer is by offering easy data collection and processing that data across organizations for insights. By analyzing large volumes of data autonomously, AI helps the insurance industry in taking preventive actions like a better price for services, checking fraud, identifying insurance policies with high risk, processing faster claims, and anticipating trends in the insurance business. Additionally AI can also help the insurance industry to get into customers’ minds and learn about their preferences and offer them personalized service.

 

2. Omnichannel Assistance

The insurance sector owes its growth to various intermediaries including partners, sales agents, employees, and customers who look for a smooth experience right from purchasing policy to claims processing. Moreover, to make the insurance sector more transparent and unified, insurers will keep integrating systems and platforms so that intermediaries and agents can ask about their queries. And from agents to partners, every individual has their own channel through which they raise requests for service and assistance and as a service provider if you are unable to offer the same, then it won’t make a good impression on you as an organization.

Using an AI chatbot can be a game changer in providing efficient customer service and giving employees and customers to select the chat channel of their choice. And this doesn’t require any additional infrastructure, organisations can easily integrate it in their existing infrastructure seamlessly.

 

3. Digital Documentation

A typical insurer or financial institution sifts through dozens of paperwork every day. As digital documentation increases, we can finally end this paper trail. These digital documents are priceless assets when insurers use an Intelligent Document Processing solution. With in-built AI technologies like Machine Learning, OCR, and NLP, insurance carriers can easily extract, analyze and process the data all across the organization. At the moment, developers strive to enhance the precision of core machine learning algorithms for OCR. The technology is useful when the information has discrepancies or inaccuracies. 

 

4. The Internet of things(IoT) for loss prevention

A variety of devices connected by the IoT generate valuable data for the insurance industry, including smart homes, smartphones, watches, speakers, and self-driving cars. Homeowners with security systems received discounts from insurance companies long before the internet of things devices became available. When a policyholder installs such a device at home, an organization can track any anomalies on the premises and a connected device will notify agents if an incident occurs. Thus, an insurance company can prevent damage. The insurer can easily generate an alert for the client to take action before any mishappening occurs. This protects both customers' money and insurers' time as well.

 

Technology trends are transforming the insurance industry into insurance tech. They not only enrich the digital experience of customers but also help in reducing operating costs, improving service, and taking the insurance industry's capacities to a new level. Given the competition in the insurance market, companies must keep a close watch on these technological trends to become leaders.

 


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