We’ve come a long way from the days of “supercomputers” taking up entire warehouse floors in the mid-twentieth century. Today, we hold exponentially more computing power in the palm of our hands than many monolithic machinations of science fiction novels ever fantasized about. Technology in insurance franchises is no different from any other, which means the industry systems and processes are getting faster, more efficient, and more convenient for the insurers and the consumers.
Let us now look at the most impactful technology trends in insurance businesses that are changing everything!
Process Automation
It’s no secret that robots are invading just about every industry. Thankfully, none of them look or behave like Terminators…yet.
Robotic process automation (RPA) is assisting insurers with various business areas. Administrative work, specifically, is becoming increasingly streamlined due to this form of automation. Routine transactions can be handled by a bot quite easily. These include building quotes, changing deductibles, sending payments, preventing fraud, and others. Most automated systems can even handle routine questions. Customers can type into a chat feature, “When was my last payment, and how much was it?”, and the system will provide an appropriate answer like, “Your last payment was on February 10, 2023, for $105.42. Thank you! Is there anything else I can help you with today?”.
Industry analysts have learned that by helping companies handle these simple tasks so easily, bots also free up time for trained and skilled customer service agents to handle more complex issues. Nothing contributes to a client’s agitation more than waiting on hold for 90 minutes to talk to someone about a serious issue. Because bots can handle so many ordinary engagements, hold times should steadily decrease.
The claims process is another pain point that can be diminished by using process automation. Car crashes tend to be a blur. It’s difficult for people to remember the details of how the accident happened. Often, clients make errors in the forms that cause claims and resolutions to be delayed. When automation is used to apply customer information to claim forms, insurers can make the process much easier.
Technology in the insurance business, particularly with automation, produces a net result of more efficient processes and happier customers.
Security Please!
Nothing tarnishes a company’s reputation like a data security breach. Thankfully, technology in insurance franchises and other businesses is getting increasingly advanced.
The goal is to safeguard sensitive data to protect the consumer. Identity theft is a major concern, but the advancement of zero-trust networks and more robust security systems industry-wide is an achievement worthy of high praise.
As insurers continue to diminish risk over the following years, customers will establish a relationship based on trust that will pay dividends in the near and long term. Widespread adoption of Blockchain could play a significant role in this development, but the complexity behind it has made it difficult for executives to understand and invest in the application. However, as the innovation gets older, it becomes more accessible. Expect Blockchain-inspired cybersecurity solutions to become commonplace soon, allowing insurers and their clients to communicate without fear of data breaches.
Practical Artificial Intelligence (AI)
We’ve been hearing about AI as a game-changer for many years now. Yet, so few businesses seem to have been able to use it in an impactful way. Alas, this trend is bound to change the way insurers work.
Providers are finally starting to understand the possibilities for leveraging AI. In 2023, analysts expect AI to impact claims, customer service, underwriting, and distribution processes. Entirely new products and services could result from more efficient use of data inspired by practical AI applications.
Smart Devices Across More Products
Smart devices are devices that contribute to an ecosystem we know as the Internet of Things (IoT). Most of us are familiar with smart devices; They can be anything from a refrigerator to a car and anything in-between as long as they’re connected to the internet. In the insurance game, smart devices can paint a picture of the client. You can determine if they are high-risk, standard, or extraordinarily safe.
We’ve seen smart devices in the auto insurance game for a few years now. The fancy industry jargon for them is telematics, which is a device that a client can attach to their car that tells them how safe of a driver they are. This simple add-on has completely reshaped the entire marketplace, rewarding customers who display excellent judgment with better premiums. After all, why should the plethora of safe drivers in the world need to pay more money to cover the poor decision-making of not-so-safe drivers?
This year and in the following few after it, experts expect to see telematics affect homeowner’s, life, health, and other products in a similar way to the auto market.
Drone Adjustors
Not quite a member of IoT, but still a pretty smart device, drones are just starting to have an industry-wide impact. This almost seems like something out of a Hollywood blockbuster science fiction movie, but the use of drones to assess damage as part of the claims process has already begun.
If it were a film, the drones would somehow go haywire, develop their own form of AI, and run amok, blasting everything. Fortunately, this is the real world, and drone adjustors are unarmed and have tested quite well…with no human casualties. Seriously, these “air robots” have been used to take pictures of homes hit by severe storms. It’s an easy connection to see how they could soon be used to assess automobile accidents and across other lines of business as well.
Not only are drones speeding up the claims process, but they can also access areas that might be deemed too dangerous for humans to traverse. After all, if a storm or wildfire has wreaked havoc across a region, would you rather send a machine or risk human life to accurately assess the scene? When used correctly, these modern marvels can also capture images from angles that would otherwise be impossible to reach. Sure, someone could get into a helicopter to view a site from above and take pictures. Or, a drone could take the same aerial shots and catch every angle from the ground level.
Expect the use of drone adjustors to become an industry mainstay soon.
Franchises Provide the Fastest Path to the Best Technology in the Insurance Business
Whether it’s drones, smart devices, AI, cybersecurity, process automation, or another aspect of technology, the role of technology when buying a franchise is a big reason to join a team with a proven track record instead of becoming an independent agency. Successful franchises with support and a strong industry presence have the resources to invest in the latest and greatest technology.
At Freeway Franchise, we believe our franchisees are a resource of the highest value. Join our team, and we will ensure you’re backed with the best technology possible. Remember, your success is our success. Call us today at 1-877-822-3024 or fill out our quick online form.
