AI and IoT have significantly transformed the insurance industry; from streamlining operations to personalizing customers’ products, these technologies are going to define the world of insurance. By 2023, the insurtech market is expected to reach $1,119.8 million and grow at a CAGR of 16.0%. Although companies were slow to adopt these technologies in the past, they have now accepted the fact that innovation is the only way to move their business forward. Here are some of the ways in which AI and IoT can help you maintain a competitive advantage in the industry.
Enhancing your CX
In today’s technology-driven world, customers want personalization and efficiency. AI and IoT help insurers reduce the time it takes to buy policies or settle claims. It also allows insurers to collect data so they can customize insurance products for their customers. Easy access to data can cause customers to become more concerned about their cybersecurity attacks however, AI plays a critical role in assessing risks and identifying fraud so their data will be protected.
AI and IoT also create new business opportunities by identifying new market segments. By gathering data, insurers can not only gain insight into their current customers’ needs but also a wider variety of people who are waiting to get insured. Getting approved for insurance is a lengthy process that can last two to three weeks. AI reduces this time frame so customers can get started on their approval process in a few hours.
Addressing Climate Change
Though AI and IoT cannot prevent harsh weather conditions from occurring, they can certainly help people become more prepared. By tracking weather conditions, insurers will better understand the risks facing their customers and tailor their offering accordingly.
The heatwave and flash flooding that we’ve experienced this year is proof that climate change will continue to persist for many years. By investing in these technologies, more customers will be able to navigate the challenges posed by these events.
Early investment in AI and IoT technologies will improve your company’s overall performance allowing you to succeed in the industry. Companies that are slow to adopt this will risk losing their customers to competitors that have adopted it into their processes because they want personalized products and faster service.
The insurance industry is all about maintaining a healthy combined ratio hence, Aureus’ AI and IoT management solutions are designed to lower risks and costs while keeping earned premiums up. We help insurers make sense of the data they collect, bringing together all cloud services that connect, monitor, and control your IoT assets – we collect and provide data automatically to shape it and present it in a meaningful way to our customers. AI and IoT in insurance are the current and future; adopt these technologies now so you can advance in the industry and create more innovative solutions for your customers.