Currently, the life insurance segment is affected by technological disruption, as new digital technologies compel insurance groups to either adapt or transform the way they interact with their consumers or fall behind the competition.
Technological advancement and changing customer choices are driving this disruption. Customers now look forward to a seamless digital experience from their insurance providers and demand easy convenience and extreme personalization.
In this article, Igor Kaparis (the CEO of International Fintech) will highlight important technology trends that are helping the digital evolution of the life insurance sector.
Wearable Tech
Being able to access and comprehend customer’s health data and life expectancy is essential to the life insurance sector. Insurers provide practice policy quotes based on how ‘healthy’ their customers are deemed to be to better predict payouts.
Wearable tech offers a neat way of collecting health data. Health-monitoring and fitness tracking wearable equipment have access to several health data such as activity levels, blood pressure, BMI, and more.
Insurers have started using these wearable devices by rewarding policyholders that agree to record and allocate physical activity data from these wearables. This allows insurance providers to offer a great level of interaction and personalization, and even enhance life expectancies.
Robo Advisors
Robo advisors are one of the best technological innovations that are transforming the life insurance sector. These AI-powered digital advisors can assist customers to get the best policies when they browse websites. They can interact with possible policyholders like sales agents would, collecting data and using it to advise on specific policies.
This allows the insurance providers to offer a great level of personalization and interaction without having to expand their customer support team.
Blockchain Smart Contracts
Smart contracts are a blockchain application wherein resources from two different parties are held in escrow until the transaction is finished. It offers a secure, transparent, and safe way of handling the life insurance claims procedures and ultimately enhances the consumer experience.
Smart contracts are even raising operational efficiency in the life insurance industry by cutting the role of third parties and helping to get rid of fraudulent claims.
Comparison Engines
Don’t think comparison engines are new, they have been around in some form for many years, but they are now starting to take the main stage in the insurance sector. Rather than looking for policies directly with the insurance provider, many people prefer to evaluate policies at a glance using different comparison engines available online.
These types of systems allow consumers to smartly compare quotes from dozens of providers without having to enter their details individually on each site. This dramatically cuts the time required to find and compare insurance quotes and enhance customer experience.
Considering the rising popularity of comparison engines, insurers have to ensure they are considering this marketing channel cautiously and that they are listed on all important comparison website databases.
Conclusion
Dramatic changes are transforming the insurance sector, and forward-looking insurers are not simply watching it happen. Insurance providers are acting and making investments that will help them become more customer friendly, enhance their pricing, and form operational efficiencies.
