2021 has been an exciting year from many perspectives. A new normal has emerged since the pandemic, one where digitization runs the world. Every industry – and every person – had to adapt and learn new ways to work. Digital trends in the insurance industry have exploded through 2021, changing how insurance is purchased, administered, and serviced.
The goals of these digitization efforts are to improve the customer experience while saving time and resources. Many digital trends are aimed at reducing expenses or eliminating bottlenecks to allow processes to continue without stopping.
Reducing errors is another important goal of digital trends – replacing manual tasks with automated ones whenever possible can reduce the potential for human errors.
Read on to learn more about new technology in the insurance industry, then reach out to us for help implementing some of these solutions in your business.
2021 Digital Trends in the Insurance Industry
Innovation in the insurance industry has been growing quickly over the last decade, and 2021 was no exception. The adoption of new technology flourished during the pandemic, with new needs at the forefront of many industries.
The adoption of low-code / no-code development tools. Many businesses want to own their technology – controlling updates and modifying their tools as needed without relying on outside developers. This is where no-code and low-code tools come in – the tools allow nontechnical agency or carrier staff to update systems as needed. This reduces the time and expense necessary for making systems updates.
Low-code business process automation works with your existing technology, so it's fast and easy to implement. Getting to market quickly with new ideas was a consistent winning theme throughout 2021 – and it will only get better as low-code and no-code RPA tools get more advanced.
Virtual collaboration tools for claims. The use of virtual collaboration tools to investigate, settle, and litigate claims has grown during the pandemic. Synchronous tools that enable real-time collaboration have exploded in 2021. Examples include chatbots, video conferencing, telehealth visits, and chatrooms that allow adjusters, claimants, and others in the insurance ecosystem to work together seamlessly. Telehealth visits allowed injured workers to see their doctors safely – and expanded access to remote specialists where face-to-face meetings would be cost-prohibitive even before COVID safety concerns.
One way to start using virtual collaboration tools is with chatbots. Machine learning and AI mean your chatbot will learn and get better as it's interacted with, so it can handle more of the routine questions weighing down your staff as it learns.
The growth of individualized services. Carriers and agencies rely on their service providers, and more vendors are providing personalized service. Digital solutions can be customized to best meet the needs of each customer. Working with a tech provider like Integratz means we'll meet with you to personalize your solution. Mapping your current workflows together shows gaps where business process automation can help – then we'll customize solutions. Out-of-the-box software is still available, but it can truly work in partnership with your other programs with added customizations.
Automation is key. Finding ways to reduce costs and increase efficiencies through automation has been a key theme in 2021. With entire workforces working from home, many processes had to be automated to make them work. Automating means reducing the risk of human error and increasing consistency in your workflow. Many insurance processes can be automated – it's a matter of finding the right process to start. Make sure to build in robust analytics capability to review the results of your automation efforts. Integrātz's Hyperstack Automation Framework™ lets you customize your analytics to get the most from your systems – ask us how to get started today.
More blockchain solutions are being tested. A significant innovation involves the use of blockchain in the insurance ecosystem. More and more insurance and risk management use cases were developed and tested in 2021. Blockchain solutions include first notice of loss, subrogation, and proof of insurance use cases. Some carriers have partnered together through alliances like The Institutes' RiskStream Collaborative and others are working together in partnerships. Blockchain for insurance records and data transmission is an attractive solution, and trends indicate carrier partners will continue building this model. Using blockchain could help reduce fraud and facilitate faster transactions.
Parametric coverage is available for various products. Parametric insurance has taken off in 2021. It is coverage designed for losses that are traditionally difficult to insure. Parametric coverage is not based on an actual accident that has happened, like traditional insurance products. Instead, the parametric cover is triggered when predefined parameters are met. Unlike a traditional insurance product, the policyholder doesn't need to suffer a loss to receive a payout.
Examples of triggering events, or parameters, could be a late plane or a certain amount of rainfall in a particular location. These triggering events are tracked and determined digitally and independently verified. And there's no need for policyholders to make a claim or prove they suffered a loss – once the trigger is verified proving the event happened, the payment is issued to the insured.
Which Trends are Right for Your Business?
With so many cool innovations changing the industry, you may be wondering where to start. When deciding which trends are right for your business, consider the impact you're looking for and which of your workflows is most ready for change. We'll work with you to map your processes from end to end, finding gaps, identifying bottlenecks, and looking for opportunity areas.
Trends change but providing the best customer experience is time-tested. Let Integratz show you how to build solutions and change the way you work forever! Book your free preview call today.