In the insurance industry, the claims process can often feel like a complex maze of manual processes for both customers and agents. However, new and advanced technologies are paving the way for smoother, more efficient claims handling. Claims processing automation at insurance companies can streamline routine tasks, reduce risk of errors, and enhance customer satisfaction. In this blog, we’ll explore three key areas to focus on for effective automation.

For insurance companies, balancing customer expectations with the rigorous requirements necessary to mitigate risks poses a challenge. Especially when you’re using manual underwriting processes. By turning to artificial intelligence (AI) in insurance underwriting, you avoid costly delays, streamline your employees’ processes, improve accuracy, and create an optimal customer experience. In this blog post, you’ll learn how AI facilitates greater efficiency in underwriting.

The insurance industry has undergone a massive transformation over the last 20-30 years. Customer service and business processes that were once done on paper or over the phone are now completed via web and mobile experiences. As a result, manual paperwork and tasks have gradually become automated via software solutions. For the insurance customer, this transition has led to faster and more predictable experiences.

IoT technologies are poised to transform traditional insurance business models, from how insurers engage with customers to the core risk assessment and management processes. In today’s hyperconnected world, the sheer volume of data available for risk pricing is growing unprecedentedly. With the proliferation of sensor-based smartphones, wearables, and smart home devices, the expanding IoT landscape offers insurers numerous business opportunities.

Insurance companies have long relied on data to assess risk, underwrite policies, and handle claims. However, as the volume of data grows, so does the need for sophisticated tools to turn that information into actionable insights. Simply having access to data is no longer enough. To succeed, insurers must be able to harness the power of their data—transforming it into a strategic asset that drives both operational efficiency and improved customer outcomes.

Insurers’ success has always hinged on their ability to analyze data effectively to price and underwrite policies accurately. While this analytical capability remains essential, outdated legacy systems hinder insurers from competing in a rapidly changing market. According to McKinsey, modernizing legacy systems can reduce IT costs per policy by 41%, increase operations productivity by 40%, improve claim accuracy, increase gross written premiums, and reduce churn.

There is a growing recognition that insurers can introduce data, analytics and AI into virtually all of the important insurance functions and workflows, including product development, pricing and risk selection, underwriting, claims management, contact center optimization, distribution management, reinsurance, and understanding and shaping customer journeys. Here are some of the exciting ways insurance companies can put data to work.

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Data forms the foundation of the modern insurance industry, where every operation relies on digitized systems, including risk assessment, policy underwriting, customer service, and regulatory compliance. Given this reliance, insurance companies must process and manage data effectively to gain valuable insight, mitigate risks, and streamline operations.

If you have a legacy system with customized capabilities and valuable features but nearing end of life, refactoring the system is a potential choice for modernization. Insurance platform modernization usually involves one-to-one code migration, which can often be more costly and time consuming than expected and typically tends to miss some of the integration and data architecture modernization that is foundational for getting the full value of digitization.