The insurance industry has had to adapt to an unpredictable world, therefore adjusting premiums without making them so expensive that they become unaffordable.
Cybersecurity has proved to be a big issue, even for the so-believed safest companies. Even large companies suffered leaks and cybernetic attacks.
Increasing productivity in an ever-changing work dynamics and market has also proven to be more challenging than expected. Should people go back to working in offices or keep the hybrid models? Many companies are still trying to decide what works best for their business model.
At the same time, businesses are trying to reduce operating costs to bounce back from the downturn.
Fortunately, the tech industry is bringing answers, practical software, and innovative solutions for people facing cross-industry challenges. Artificial intelligence will play a vital role in this dynamic.
We are bringing you the most prominent issues and trends in industry behavior for you to look out for in 2023 and how InsureTech can help you fight and sometimes solve these issues!
Insureds are opting to reduce their coverage where possible or avoid hiring it. In this scenario, the best case for insurers and insurance companies is customized insurance; having a policy that fits every user individually would get much more adoption than a “one fits all” approach. Technology is the answer to customizing policies without creating chaos.
Decision Makers Focus on Reducing Operating Costs
Reducing costs involves using money more efficiently; this is where technology comes in.
Benchmarking, for example, is done in claims management to test how efficient the administration has been in any group of claims, highlighting where there is an inefficiency, catching it, and revealing it so the departments involved can get their hands on the issue.
Efficient claims management is another area where insurers could reduce costs with technology’s aid. Effective management means transparent communication, fast resolution, reasonable allocation of resources, and the availability of ancillary medical services, in the case of workers’ comp claims.
Cyber Threats and Cyber Security
Cybersecurity also topped the ten most worrying phenomena in 2022. Security has become much more complex, but the minds behind the most significant attacks have managed to make major leaks, bring down websites, and in the saddest cases, bring down a country’s electrical lines.
Cybersecurity is essential, especially for insurance companies that handle sensitive information like health records. One thing to remember is that legacy systems are the most vulnerable to cyber-attacks, given that the older the system, the more chances its security has been cracked.
This creates a situation where insurers either must constantly be updating their security measures and lecturing their staff on what not to do, or they license a claims management solution that is cloud-native and has a team of engineers updating its security.
Changing Nature of Jobs
Challenges faced during 2020 led to dramatic changes in how jobs are performed. The focus is now on resilience and productivity without burnout.
Technology helped keep production on track for years prior and is responsible for bouncing back businesses; it allowed people to work from home when needed. Over the horizon, it will help new relationships in the workforce, and it will help incorporate automation.
This creates a situation where insurers either must constantly be updating their security measures and lecturing their staff on what not to do, or they license a claims management solution that is cloud-native and has a team of engineers updating its security.
The rise in the Use of AI
Just as with commerce and industry, in insurance and compliance management, the rise of AI has changed everything. Artificial intelligence is programmed and designed to imitate what a human brain would do. AI is getting more sophisticated as time passes, allowing understanding and performing more complex tasks.
The insurance and compliance industries are aware of the benefits of artificial intelligence, which is why they are increasingly integrating it into their processes. AI frees humans of menial tasks so they can focus on more pressing matters that need human intellect
Tailored products
Clients, insureds, vendors, you name it; they all want a product that’s specific to them. Everyone is tired of having to pay costs they have no use for. Add people already getting these expectations fulfilled by all industries with the ability to do it.
Carriers and agents must be prepared to tailor their products more and more. Doing it person-to-person seems like an impossible challenge today, but you can start by tailoring it to small groups. Gathering data and efficiently processing it will yield results in the long run, and you might eventually wind up with a make-your-own product type of deal.
Technology Changes Everything
Although challenges are coming to the insurance industry, technology minimizes the effect of these negative trends helping with predictions, performance analytics, efficient management, and overall digitalization.
On the economic front, technology helps and will continue to empower managers to locate where there’s waste and eliminate it while also speeding up and streamlining processes.
In the Insurance Industry, technology is changing everything from the ground up. You no longer have to spend time with analog forms, sending them by mail, and managing bulks of paper to find an address.
Technology is making automatization possible and leaving insurers, brokers, and managers to think about the next best thing in insurance or how to give the insured the most specific coverage they can get.
Specifically, claims management systems revolutionize how you approach time and resources management when dealing with claims and policies. Learn more about comprehensive claims management with Terra.
