#7 Technology Trends In Insurance Industry & Software Development

In this blog; I have explained two major sections. One is the technology trends in the insurance industry and the other is the types of insurance software. But first, let’s briefly understand,

How Technology Advancement Evolve Insurance Industry?

The insurance industry is booming with time and technology. Today; people simply open the website of an insurance company; filter their search as per the requirement and within a few clicks, they get any type of insurance they want.

Insurance Technology Trends For Insurers And Businesses

The trends in the insurance industry are growing rapidly and daily something new is added to the list of insurance technology trends. This blog is for all the insurance companies and insurance agents to understand the role of insurance software development for better customer service.

This era is lead by apps and technologies; where everything is just one touch away. From applying to insurance to managing the customer details all can be easily done from one website or mobile app. Hence; technology is going to play a major role in any insurance business to give their clients the ease of communication and win the competition.

Earlier; the trends in the insurance industry were mainly based on ways to help the staff and managers. Nowadays; these trends are also for the customers and clients. As a result; we are going to cover both the aspects here.

Let’s check out the list of trending technologies for insurance with their impact or benefits.

Which Are The Insurance Technology Trends For The Upcoming Era?

Here is the list of potential trends that are going to lead in the upcoming times and which are having a huge impact on several insurance companies around the globe.

We have also mentioned the ways any insurance firm can use these trends for their own customer service and staff plus operations management tasks.

Predictive Analytics

Predictive analytics helps the insurers to store different types of data of customers. This, as a result, helps them to analyze and anticipate customer behavior in advance.

There are multiple ways to collect data from different sources like social media, smart home data, telematics, and even customer and agent interactions.

Later on, this can be leveraged to improve the accuracy of customer satisfaction. Also; predictive analytics can be a great tool for insurers as well. Insurance agents can get alerts in advance related to the complications or potential losses in the deal.

Insurance companies around the world are using predictive analytics for multiple uses like:

How Insurance Companies using Predictive Analytics in 6 Best Ways:

1. Identifying Outlier Claims.
2. Pricing and Risk Selection.
3. Identifying Customers at Risk of Cancellation.
4. Sorting Claims.
5. Anticipating Trends.
6. Identifying the Risk of Fraud.

Artificial Intelligence(AI)

There are already several insurance companies that are leveraging the power of artificial intelligence for their business operations. AI is reshaping the culture, staff, and consumers of the insurance business.

With calculated risks and advance data companies are flourishing at the highest speed and hence the competition is increasing.

Adding to that the right team and infrastructure, any insurance company can leverage the advantages given by this technology for the betterment of their staff and operations.

How AI is transforming the Insurance Industry? and What are the benefits?

1. Chatbots and messaging apps for instant customer service.
2. Automated underwriting process.
3. Improved customer behavior insights from huge data.
4. Reduction in claims processing time with straight-through-processing rates.
5. The role of agents is now updated to product educator.

Machine Learning(ML)

Powerful machine learning algorithms are helping the insurance companies to adopt data-driven and event-driven decision making. Insurance companies like State Farm and Liberty mutual are utilizing the benefits of Machine learning to win the competition in this technology era.

#4 Advantages of Machine Learning in the Insurance Industry

1. Highlight the influential factors for your team to explain the results to customers and executives.
2. Predict and beware of risks from marketing, fraud, and underwriting.
3. Predict the final claim amount based on the characteristic of the claim at the time when the claim was filed.
4. Scaled training for the employees.

Internet of Things (IoT)

IoT is redefining almost every aspect of our lives. Especially the insurance agencies; with digital networking and internet of things insurance firms are generating additional revenues along with reducing costs.

By monitoring the IoT based sensors closely companies can now introduce demand-adjusted or usage-based pricing for the customers.

The best #3 ways the Internet of Things is helping the Insurance sector:

1. Curbing fraud with using the analytics.
2. Better business models and new services are introduced.
3. Automatic maintenance triggers efficiency.

Smartphone Apps

Who doesn’t use a smartphone? Today; there may be people who are not able to understand how to use PCs or Laptops, but there are very few people who are not able to use a mobile phone. Hence; mobile applications are a hot trend for insurance companies. Wait; mobile apps are not something new. But they are new for the insurance business.

Think yourself; how many insurance mobile apps you know?

Think of an app where your customers will get notifications of renewals, claim process and latest offers.

On the other hand; every agent has an account to login and in that, they have the details of their clients and performance reports. Doesn’t it sound simple and transparent for everyone?

These are a few very basic benefits of a mobile app for an insurance company. The list can be long enough to convince you to build an app for your company today.

Related Read: Insurance Mobile App Development: What, Why and How?

Chatbots

Believe it or not but insurance companies are popular for bad customer service.

No one likes to hold for minutes or hours to get a customer care executive to talk. What can be the alternative? The answer is; Chatbots.

With efficient chatbots, your clients can get all the information they want on their phones without wasting their time. They don’t have to call any executive; all they have to do is open the chatbot application and type the query.

The Bot will respond to the query as per the database, and with the use of AI it will be provide more accurate responses. To make the conversation secure you can encrypt the communication as well as you can provide login details to the customers.

On the other hand; your customer care executives can be available for more complex processes and operations. They don’t have to spend their time in answering all the basic queries of the customer.

Drones

Wondering the connection between drones and insurance?

Drones can be used in the assessment process. In the case of farmers insurance, fire or natural calamity drones can be used to figure out the losses. They can simply analyze the area and transmit the data from the location to the cloud instantly.

They are capable of reports like aerial imaging, rooftop inspection, and overall condition analysis. This helps the agents to make the process faster.

Drones can also be used to aid the preventive maintenance, calculate the risk prior to the policy issue also collecting the data.

Now that we are aware of the insurance technology trends, its time to check out what types of software are trending for it.

What are the best Software’s for Insurance Companies Include?

Above we have already discussed the importance of mobile apps and technologies for any insurer. Now let’s understand how software is capable of serving your clients effectively and releasing the workload.

Insurance Agency Management Software

This kind of software is mainly used to organize business books and run the operations effectively. All the data of the organization is stored in the software and divided into categorizing.

Furthermore; the data is displayed based on the roles assigned to the user. In this way; the security and privacy of the customers’ data are maintained plus the time of insurer is saved.

#7 Features Must for An Insurance Agency Management Software

1. Track Agents,
2. Policies Tracking,
3. Track Carriers,
4. Email Marketing Automation,
5. Automated Workflow,
6. Email Campaigns,
7. Cloud-Based Access and many more.

Insurance CRM Software

The main goal of any CRM is driving sales growth and assistance in customer retention. A customer relationship management system analyzes the customer interaction and data provided throughout the customer lifecycle.

This helps in practicing and analyzing the best ways to keep the customer intact and happy. Overall, an insurance CRM software is beneficial for tracking the clients and prospects, data backup, automated workflow, file storage and many more.

Insurance Product Development Software

Wondering how a software knows which kind of product will work for your insurance industry? Well with the help of the right technology and sufficient data these types of software can help you to figure out the right product for your target audience.

These software understands the policies of the company and uses the existing client base to give results. The final results include; what kind of products the firm can build, what can be the pricing and what types of customers you can target.

Auto Insurance Software

We have mentioned auto insurance software separately because we understand the importance and the amount of work required for an auto insurance agent. With the right balance of technologies like Machine learning, AI and predictive analysis the best software can be developed.

These types of software are also helpful for huge fleet management or transportation companies. To manage the data of every vehicle separately can be a headache.

With auto insurance software, your client can easily maintain the records and data of each vehicle. This in return will help them to claim for the insurance and will help the agent to verify the details smoothly.

Related Article: How Auto Insurance CRM Solutions Works in USA?

Insurance Lead Management Software

Now insurers can easily respond to the leads they are getting with a software which is easy to understand and faster as well. With a lead management software insurers can organize the leads based on categories like status, sources, etc. As a result; insurers can easily qualify and follow up the leads. Also; This type of software will help the insurance agents to keep the track of the data.

All in all, this software includes #5 features like

1. Process & Track Commissions,
2. Project Commissions,
3. Tiered Pricing,
4. Industry-Specific Reporting,
5. Industry-Specific Analytics and many more.

What is the best way to decide which type of Software or Technology is required for your insurance firm?

There is no doubt that the market is full of multiple software for insurance companies, but you have to first of all figure out if you want to buy an existing software for your team or you want to build a custom one?

Both have their own pros and cons, but the insurance industry relies mainly on the security aspect. As a result; it is suggested not to go for any SaaS-based software subscription as you might lose your data and your clients. Here are a

Top #4 benefits of going for custom insurance software development for agencies:

1. Complete data security.
2. One-time investment (no need for monthly or annual charges).
3. Custom features as per the requirements.
4. Easy staff training.

Talking about the technology to adopt; we will suggest you combine insurance technology trends with the software. In this way, you can save your money also utilize the technology without feeling overwhelmed.

Adding a new technology in your operations needs a lot of time and training for your staff. Hence make sure you are selecting the right type of software and technology.

Read more: Cloud-based Custom Insurance CRM | Why its best for Agency?

How much does Insurance Software development will Cost?

Just like any other software or mobile application; development cost effects on several factors. The major factors include requirements of the company, the complexity of the project, the amount of time required and the resources needed for the project. All these things together make the final product.

The basic formula for calculating the cost is;

(the number of hours required to build the product) * (the per hour charge for the developer)

Keep in mind; the hourly charges depend on the location and skills of the developers so it may vary.

Similarly; the total number of hours required for the development also varies as per the requirement of the project.

This formula is to help you get the rough estimation of your project.

Over To You!

Now it’s your chance to transform your insurance operations.

This is the era of hi-tech apps and software, not sales books and physical documents. Save the time and efforts of your staff and give them the opportunity to utilize this time for better ideas and plans.

On the other hand; gain the trust of your customers and clients by giving them a transparent system.

If you are still confused or wondering how you can integrate these insurance technology trends in your company then we are here for you. We have team of 7+ years of experience expert insurance software developers and enthusiasts who love to work on insurance software development.

Get in touch with us to discuss your requirements with the tech wizards.