Traditional businesses are projected to be disrupted and revolutionized at an unprecedented rate as the Internet of Things (IoT) emerges. These new technologies have the potential to benefit the insurance business, which has been hesitant to adapt in the past. Before we get into how the Internet of Things will affect insurance, let’s define what we mean by “IoT” in this context.
Recent years have brought no shortage of change to the insurance industry. Among those changes is a rise in governance, risk, and compliance (GRC) requirements. Effective in May 2018, the General Data Protection Regulation (GDPR) became the first major regulation to focus on protecting consumer data. Its implementation coupled with a global pandemic has kickstarted a rush to enact more laws surrounding data privacy.
The insurance industry is undergoing massive modernization to improve outdated processes and enhance policyholder experiences. Delivering a connected insurance experience has become critical for insurers to stay competitive as the marketplace digitizes and insurtechs emerge, bringing new challenges to more established providers. Core to an insurer’s overall connected insurance experience are workflows that ensure a seamless, accelerated digital underwriting process for potential policyholders.
You have heard the terms digital transformation and cloud computing many times in the past decade, but now it has come to the insurance sector. Digital technologies have had a major effect on just about every industry from retail and manufacturing to healthcare and hospitality. The insurance industry is often slower to jump on any new trends. Insurance providers are set in tradition and don’t usually see much need to change.
Every step of an organization’s customer journey plays a role in overall customer satisfaction. But for insurers facing increased competition from emerging insurtechs, the digital claims experience is perhaps the most crucial to get right. According to EY Global’s Consumer Insurance Survey, 87% of policyholders say the claims experience directly impacts their decision to remain with their insurance provider. To up the ante even further, insurtech funding has been increasing exponentially.