The antiquated commodity of Financial ‘Coverage & Protection’ is getting a new make-over. Conventional epigrams like ‘Insurance is sold and not bought’ are becoming passé. Customers are now more open than ever before to buying insurance as opposed to being sold by an agent. The industry itself is witnessing an accelerated digitalization momentum on the backs of 4G, Augmented Reality, and Artificial Intelligence-based technologies like Machine Learning & NLP.
As new technologies and consumer habits keep evolving, so are insurance business models. The reality for many insurance carriers is that they still don’t understand their customers with great accuracy and detail, which is where intermediaries like agents and distributors still hold incredible market power.
On the other hand, distribution channels are turning hybrid, which is forcing carriers to be proficient in their entire channel mix. Customer expectations for 2020 will begin to reflect more simplicity and transparency in their mobility & speed of service delivery.
A recently published Gartner Hype Cycle highlights 29 new and emerging technologies that are bound for greater business impact, that will ultimately dissolve into the fabric of Insurance.
For 2020 and beyond, newer technologies are emerging along with older but more progressively maturing ones creating a wider stream of opportunities for businesses.
Irrespective of the technology application adopted by insurers — real, actionable insights is the name of the game. Without it, there can be no long term gains. Forrester research explains “Those that are truly insights-driven businesses will steal $1.2 trillion per annum from their less-informed peers by 2020”.
Based on the major trends identified in the Hype Cycle, 5 of the most near-term disruptive technologies and their use cases, are profiled below.
Autonomous cars can also sensors, cameras or mics that relay information over the cloud that can be translated into insights concerning the emotional state of the driver, the driving experience of the other passengers, and even the safety level within the vehicle.
Gartner estimates that at least 10% of personal devices will have emotion AI capabilities, either on-device or via the cloud by 2022. Devices with emotion AI capacity is currently around 1%.
Source: Gartner Data Analytics Trends for 2019
For instance, Online Identity Verification is an example of a real-time application that not only enhances human’s decision making ability, but also requires human intervention in only highly critical cases. The Global value from Augmented AI Tools will touch $4 Trillion by 2022.
While automation continues to bridge the gaps, InsurTechs and Insurance Carriers will need to embrace ahead of the curve and adopt newer strategies to drive sustainable growth.
Also read – Key takeaways from the 2019 World InsurTech Report
Mantra Labs is an InsurTech100 company solving complex front & back-office processes for the Digital Insurer. To know more about our products & solutions, drop us a line at hello@mantralabsglobal.com.
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