The driving forces of today’s world have led to a demand for innovation and changes in the field of insurance. Due to the rise of certain trends, the insurance sector will be seeing the following modifications.
A new auto risk, a new insurance program:
An article in www.businesstoday.in stated long back that tough competition had caused the paradigm shift in insurance. Similarly, innovation in cars and vehicles will cause a huge change in auto insurance. In a world where Google and Entrepreneur Elon Musk are working towards making driverless cars, it is obvious that the insurance field has to react. The level of risk and other insurance factors differ majorly from the traditionally driven cars. For example in the event of an accident who is to be blamed for the fault. The man who was sitting in the car, the individual who wrote the software that drove the car or the other entities involved in the accident.
Internet of Things
IoT is the new wonder of the world. It is the connection of all things via the internet. It is your phone telling the garage door to open and then the fridge to chunk out ice in a glass and the commanding the lights of your home to switch on before you step foot in it. IoT also demands changes and innovation in the insurance field. Imagine this scene. A device that is worn by a customer can continuously inform the insurer of the health stats. It can also provide information related to filter activities. In such cases is it not the onerous of the firm to provide a program that takes all this data into consideration? To truly process all the technological data streaming from millions of devices major technical innovations are needed. The volume of data is only one aspect, the respect of privacy and keeping data secure is another. Making better products and services using archived data is another facet the insurance field will need to look into.
In an era that is glaringly digital managing risk is completely different. When the possibility of getting real-time risk information is high, the way one forecasts risk manages it and then mitigates it needs an overhaul. The biggest innovation in insurance field required is the ability to capture real-time data and analyze it for patterns and actions. Do that does it become the obligation of insurance companies to gather the massive amount real-time data streaming in?
The millennial effect
Some changes that have been needed in the insurance professional has been due the millennial. Their preference to use digital platforms and social media means to capture them as customers successfully, insurance needs to have a digital interface. At present, insurance company systems were designed and work best with human workflow. Phones and emails were used to not only interact with customers but to gain new ones. The millennial effect demands that services, information, and queries be answered immediately and through the digital world. Innovation is needed in the user interface of the insurance firms.