This year will mark a new time for the U.S. insurance industry to adopt more modern technologies from HR administration software to artificial intelligence (AI).
AI technology, for instance, has become more intriguing for companies. Based on PwC’s 2017 CEO Survey, 61% of respondents said that they have been looking into the advantages of combining efforts of humans and machines.
PwC’s survey also showed that 49% of CEOs believe that AI will drive the need for skills development in the future. Meanwhile, 75% of industry executives expect AI to modernize the insurance sector, according to Accenture’s 2017 Technology Vision for Insurance.
These expectations will take place as the industry moves to a customer-centric approach from a product-focused strategy. Companies should intend to maximize the integration of new technologies into their business, as industry revenues may likely reach $3.0 trillion in 2021, according to Freedonia Focus Reports. Direct healthcare, direct life and direct property and casualty (PC) will be one source of revenues in the future.
Property and casualty
Some PC firms have already resorted to AI, as auto losses in 2016 rose by 13%, according to the U.S. Property & Casualty Insurance Market Report. In the first half of 2017, the segment suffered around $5 billion of net underwriting loss. The solution to this involved automated personalized policies for insured drivers.
Devices such as Telematics provide customers with details of their payable premiums based on the installed device’s feedback to your driving habits. Other strategies include incentives to clients with good driving habits, while penalties await reckless drivers.
Automated technologies will be necessary not just to improve your operational workflow, but also to attract and retain customers. Times changes, so you should consider investing in new technology or risk being left behind in the industry.