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Insurance Technology Is Changing the Industry — Here’s How

male and female business colleagues looking at a shared computer screen: insurance technology trends
Insurance carriers are realizing technology isn’t part of their value proposition, it is their value proposition. [Studio Firma/Stocksy]

Discover the latest insurance technology trends that help carriers deliver a better customer experience, from distribution to underwriting.

Self-driving cars. Web-enabled machinery. Data-capturing drones. These are just a few innovations changing the ways people live and work — and buy insurance. Nimble insurance technology companies are winning new customers by providing near-instant quotes, fast claims processing, and personalized service. But what about legacy firms? How can they uplevel their back- and middle-office operations to surpass their more agile competitors?

Over 80% of insurance executives say their business and technology strategies are the same.

To keep up, carriers are realizing technology isn’t part of their value proposition, it is their value proposition. Over 80% of insurance executives say their business and technology strategies are the same. After all, insurance technology companies are already on board, relying on cloud technology, artificial intelligence (AI), and automation. But for the heritage businesses saddled with decades of technology debt and outdated operating models, it’s a different story.

The good news is companies with legacy systems don’t have to start from scratch with new technology (and probably shouldn’t). By taking a modular approach, companies can preserve decades of valuable data and deliver the excellent experiences customers have come to expect in every area of their lives. Here are three insurance industry trends that can help carriers grow — and scale quickly — with the right tech.

Meet real insurance customer needs with tailored, data-driven coverage

Gone are the days when insurers simply trusted the accuracy of customer-provided usage information. Today, telematics technologies like GPS and onboard diagnostics are yielding a trove of valuable (read: accurate) data for insurers. From real-time maintenance alerts that prevent unnecessary repairs to driver safety scorecards that keep workers safer, telematics is transforming business.

You can deliver better end-to-end policyholder experiences when personalized insights filter their way into offering specific kinds of coverage.

This should be a wake-up call for insurers. Using datasets generated from drone images or radar, for example, carriers can customize better coverage in less time. This can happen thanks to cloud technologies and 5G networks working together with platforms like Salesforce, which offer industry-specific clouds. You can deliver better end-to-end policyholder experiences when personalized insights filter their way into offering specific kinds of coverage.

Embrace an architecture that builds a bridge over and around old insurance systems

Many insurance companies have invested large sums of money into aging systems with extensive customization. Ripping it out is not just expensive but daunting. You can’t afford to skip a beat in coverage, premium processing, or claims payouts. The good news is a rip-and-replace method isn’t necessary — or even wise, according to Accenture. Their recommendation? Take a modular approach.

With the right insurance technology, you can streamline business processes and enable anywhere/anytime collaboration. 

To start, consider the places your business needs to connect more efficiently. Do your distributors work seamlessly with underwriting or service? Perhaps your newly-remote back-office employees need a cloud-based platform (designed specifically for insurance companies) so they can better manage workflows, easily surface actionable insights, and seamlessly share information with key partners. With the right insurance technology, you can streamline business processes and enable anywhere/anytime collaboration to achieve operational excellence while deepening relationships with agents/brokers and policyholders.

How agile is your insurance technology?

Find out how to deliver better products, processes, and experiences to policyholders and producers.

Uplevel automation capabilities for faster underwriting and claims processing

Carriers have always invested in automation for back-office functions like payment processing. But as AI’s capabilities evolve and mature, look for predictive analytics to disrupt underwriting, service, and marketing.

Imagine an agent has submitted a standard policy application to underwriting. Instead of waiting days for pricing, decisions can happen in minutes. AI-powered automation delivers the response nearly instantly. In cases where AI can’t deliver a decision quickly, it will route the agent’s inquiry to a human representative. Speedy service like this makes it more likely you’ll gain preferred status with your distributors.

The insurance industry is in the midst of a digital revolution. The question is: How will they use the new technology in insurance to win against agile competitors who already have a head start?

Unlock faster growth with better policyholder experiences 

Salesforce can help at every step in the journey, whether it’s giving support agents a 360-degree view of customers, assessing risk on an automated platform, or matching you to the best distribution partners. Here’s how insurance technology helps your business grow and scale in 2022 and beyond.

Chris Cicchetti Financial Services Product Marketing Leader

Chris is a marketing professional with 20+ years of experience spanning CPG, technology, and start-up environments. He’s led marketing teams and driven large-scale campaigns for companies such as Pepsi-Cola, Holiday Inn, Travelers, and The Hartford. Chris is focused on bringing innovative marketing solutions to the Salesforce Financial Services organization focused on Insurers and Distributors.

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