Technology trends of insurance industry in 2024: Embracing the future of insurance
Insurtech
February 7, 2024
3 mins read

Here are the top technology trends in insurance industry 2024:

Top Technology trends in insurance industry 2024

AI:

There is a buzz around AI everywhere and the insurance field is no such exception. Insurance apps and websites involve complex processes such as filing claims and managing policies that deal with colossal amounts of data. AI in insurance can analyze this huge data quickly, improving accuracy and efficiency. This saves a lot of time and money than manual intervention. AI can not only be used for claims processing but also for processes such as underwriting, fraud detection, and customer service. Every app and website (be it insurance or not) has now incorporated AI-powered chatbots and virtual assistants to provide 24/7 customer support. This is especially important in insurance apps where users are already distressed by an unfortunate event occurring in their lives such as an accident where their vehicle is damaged. Such events can occur during any time of the day and the user would need prompt help and support. 

Artificial Intelligence

Predictive Analysis:

AI in insurance takes center stage again for predicting future outcomes based on the analysis of customer behavior data, the use of statistical algorithms, and machine learning technology. Such valuable insights can be implemented in numerous ways including customizing products according to each policyholder's special needs that increase customer satisfaction and strengthens their loyalty. It can also be used to detect fraudulent activities and suspicious patterns to promptly report the issue and mitigate losses. 

Internet of Things (IoT):

Internet of things

According to a report by IoT Analytics, the number of IoT connections increased by 18% across the globe in 2022 with the prediction that it will continue to grow. IoT refers to devices such as gadgets, applications, sensors, etc that exchange data over the internet. This technology has been rapidly utilized in many industries because of its clear benefits such as gaining valuable insights to create customer-centric products, reducing costs, and enhancing security. In the field of insurance, IoT can be used in similar ways such as:

For Vehicle Insurance:

Telematics, one of the IoT devices that are installed in vehicles allows insurers to gather insights on the driving behavior of users like speed, acceleration, braking, and location and this can help evaluate risk more precisely and design usage-based insurance policies.

Vehicle Insurance

For Property Insurance:

Insurers can collaborate with companies offering IoT sensors such as smoke detectors and high-tech security systems to mitigate damages and prevent serious losses of policyholders.

Property Insurance

For Health Insurance:

With new gadgets such as fitness trackers and smartwatches that detect heart rate, sleep patterns, and other activity levels becoming a part of people's everyday lives, insurance companies can utilize this data collected to assess health risks and offer personalized health insurance policies. 

Health Insurance

Low code/ no code:

One of the technology trends in insurance industry is seeing digital insurance move in the direction of democratization with many companies using low code/no code platforms to save money on engineering hiring costs and empowering businesses to launch their product. Many such platforms also focus on compliance and security. Even if the company has an IT team, they help in solving issues surrounding work backlogs and increasing overall productivity. Insurers can leverage easy and intuitive drag-and-drop features to launch their products quickly in the market, manage their platform and update as per business and customer requirements. 

Blockchain:

Another key technology trends in insurance industry 2024 is blockchain. This is because the digital insurance sector deals directly with money and one of the most prominent fears is fraudulent activities. By storing policy information, claim details and other relevant data on a blockchain, sensitive information and verification of finances can be exchanged quickly and efficiently without the breach of any data. Insurers can thus prevent unauthorized access and enhance data privacy compliance.

Blockchain

Conclusion:

These technology trends in the insurance industry 2024 are shifting the insurance sector into an increasingly digital and customer-centric landscape. There is also a conscious focus on security and mitigating losses which becomes way easier with these technologies.

Source:

  1. https://iot-analytics.com/number-connected-iot-devices/#:~:text=In%202022%2C%20the%20market%20for,27%20billion%20connected%20IoT%20devices
  1. https://www.mordorintelligence.com/industry-reports/digital-insurance-platform-market#:~:text=Digital%20Insurance%20Platform%20Market%20Analysis,period%20(2023%2D2028)

Currently documenting the journey of building a Product | Co-founder at Alien. I am passionate about the creative field, which led me to initiate my journey into business with a focus on digital products. Beyond my professional pursuits, I find solace in traveling and taking breaks from city life, often indulging in trekking adventures.

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FAQ

How does AI impact the insurance industry, particularly in customer service?

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AI enhances customer service in the insurance industry by providing 24/7 support through chatbots and virtual assistants. These AI-powered tools offer prompt assistance, especially during distressing events like accidents, saving time and improving customer satisfaction.

What role does predictive analysis play in insurance, and how does it benefit policyholders?

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Predictive analysis in insurance utilizes AI to analyze customer behavior data and predict future outcomes. This enables insurers to customize products to meet policyholders' specific needs, detect fraudulent activities, and promptly mitigate losses, ultimately enhancing customer satisfaction and loyalty.

How is the Internet of Things (IoT) revolutionizing the insurance industry?

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IoT devices like telematics for vehicles, smoke detectors, and fitness trackers are transforming insurance by providing valuable insights to assess risks more precisely, prevent losses, and offer personalized insurance policies tailored to individuals' behaviors and needs.

What is the significance of low code/no code platforms in the digital insurance landscape?

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Low code/no code platforms democratize digital insurance by empowering companies to launch products quickly while saving on engineering hiring costs. These platforms offer intuitive features, streamline processes, and enhance productivity, making it easier for insurers to adapt to changing business and customer requirements.

How does blockchain technology contribute to security and data privacy in the insurance industry?

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Blockchain technology stores policy information, claim details, and other data securely, preventing unauthorized access and enhancing data privacy compliance. By facilitating quick and efficient exchange of sensitive information without data breaches, insurers can mitigate risks and ensure the security of financial transactions.