This article was Last Updated on February 21, 2022 by Olushola Awode
When we talk about insurance innovation, what exactly do we mean? It suffices to say that the Insurance industry is certainly one in need of innovation. For the simple fact that it is working in a dynamic and diverse world, it would need to invent not just new products but new ideas on how to sell and manage its products.
First, the industry needs to cater to people living in a new digital age. The reality on the ground, however, is that we have a plethora of emerging apps and other digital products, and we live in an information technology age that is vastly different from much of the history of insurance.
Secondly, the process of marketing insurance and even processing it now also depends on information innovation. This means that companies and agents who want to get ahead now have new software and other digital tools they can use. It would be beneficial to know how they are being used by top-performers in their craft or discover new insurance innovations with the potential to transform companies and boost growth. There are mobile apps that can register new clients and help them manage their own insurance package and Artificial Intelligence that uses machine learning to analyze trends in markets. We will be examining the new tech and reporting on their performance so far.
There are also other changes happening on the planet that requires Insurance innovations.
As climate change advances, many living in areas prone to flooding, hurricanes, or wildfires would need different forms of home or life insurance. Many are now sensitive to their own carbon footprint and would be buying electric cars, solar panels, and other products that lower carbon emissions. It is a world that is changing, and the insurance industry would have to change with it.
These are the emerging innovative trends in insurance.
Sales and Marketing
These days, you can really buy an insurance plan from a random chatbot that popped up while you were randomly surfing the web. You can casually download a new app that sells you a variety of insurance plans and helps you manage them from your phone. When you buy a new car today, you may not need to drive to an insurance office – the car salesman would probably tell you about a new app that can handle that for you.
These are all examples of insurance innovations that have dramatically altered the process of sales and marketing in the insurance industry. They make it possible not just for companies to gain new clients who have never met any of their sales agents but also assure that these new clients may never need to visit the offices of the insurance company.
And even newer tech products are emerging in the field of insurance sales. With better analytics and targeted advertising, companies would be able to reach potential clients at the very moment of their need for their products. With better telematics, companies have also been able to remotely handle the specific needs of new clients. Also, existing tech needs some improvements. Some have had a really bad experience with some chatbots, and others have had their paperwork filed wrongly by the automated system. Better products and technologies that improve on these are on their way.
The critical advantage that technology can offer an insurance company is to widen its field of prospects, to cover possibly the entire globe. From prospecting to closing deals and even managing deals, emerging internet-based technology has been able to change how a company or sales agent can acquire a long client list. It, however, also means that new products would have to be innovated to fit this method of prospecting and sales.
There is a need for new products to be innovated in the insurance industry to meet the demand of emerging trends. For example, with better tracking devices and more cameras in parking lots, auto-insurance has changed, and some new products have emerged. There is a need for such new products in other fields of life and work that are being met by innovation in the Insurance industry.
The COVID-19 pandemic, for instance, has altered the outlook of many people on life. It changed the workplace and other areas of public life too. The kinds of life insurance plans that people would be inclined to buy would be changed by the pandemic. It has also created a need amongst many people to have better control of their day-to-day finances, and many insurance products could be tailored to address that.
There are also other emerging trends that would continue to affect the industry. Climate change, as we mentioned earlier, would mean that many would seek new forms of property insurance. People would also seek forms of insurance sensitive to the inequalities that affect them due to their race or ethnicity.
Claims Processing and other Office-work
There is nothing that has demonized the insurance industry more than the possibility that someone who buys an insurance plan may not be able to claim it at their point of need. This is because, well, claim processing has been an arduous process for insurance companies. Other parts of the insurance office-work have also lowered the customer satisfaction that a company garners.
There are a bunch of new techs that have been able to help firms take control of the process. There is better software for the analytics needed to verify incidents and settle claims. The process of filing and handling paperwork. Application Programming Interfaces (APIs) have also been improved, creating a new dynamic workflow that insurers can use to share data and work together without interference or roadblocks.
Final Thoughts on Insurance Innovation Trends
The entirety of the Insurance industry would change to adapt to a new digital age in a new world. Many of the regular work done today in the industry would either be obsolete or be done differently. We hope you find this article on insurance innovation exciting!