Technology innovation has been driving rapid change within the insurance industry – and accelerated even more over the last year. The rise of AI (artificial intelligence) alone is having a direct impact on insurance purchasing, underwriting and claims.
According to LIMRA, data and analytics, accelerated digitization and platform modernization will continue to be powerful tools as the world transitions post-COVID.1 The common denominator across most tech trends is data, because combined with analytics, it can improve profitability, operations and the customer experience.1
Consultancy McKinsey & Company says these four core technology trends are shaping the insurance industry and its future:2
1. Explosion of data from connected devices
Experts estimate there will be up to one trillion connected devices by 2025. For consumers, these devices include cars, fitness trackers, smart watches, smartphones and home assistants (think Alexa), home appliances, medical devices, and even shoes.
The mountains of data generated by these devices will allow insurance carriers to understand better the needs of their clients, which will result in personalized pricing and tailored solutions.
2. Increased prevalence of physical robotics
With robots becoming more universal in applications like manufacturing, surgery, drones and self-driving cars, carriers must understand how their enduring presence will shift risk pools, change customer expectations, and enable new products and channels.
3. Open-source and data ecosystems
As data continues to grow, open-source protocols will be developed to help share data across industries. Both public and private entities will create ecosystems to easily share data using frameworks.
Wearable data, for instance, could be ported directly to insurance carriers, and connected home and auto data could be provided by device manufacturers. Plus, data from wearables could be analyzed to signal medical conditions – enabling carriers to get health change updates about their insureds – and help improve health behavior.
4. Advances in cognitive technologies
Deep learning technologies based loosely on the human brain will become the standard for processing large, complex data streams. This data will include information about an individual’s behavior and activities to help insurance companies quickly adapt to customer needs.
By 2030, some experts even predict the process of underwriting will mostly be automated.2
Securian Financial explores emerging technologies
Securian Financial is prioritizing innovation to help customers solve their problems and prepare for the future. It’s also experimenting with emerging technologies and making strategic investments in innovative startups exploring AI, robotic processing automation and more.