Written by: Paul Fishkin, Chenango Brokers
To be honest, the insurance industry is not well known for keeping up with the times.
However, technological advancements are helping insurance professionals work smarter, faster and more efficiently.
It is indisputable that technology has helped several industries to revolutionize and finally we are experiencing some great changes in the insurance world too.
Industry leader Xavier Mutzig created chaos in the insurance world by saying that the profession has not met any huge revolutionary changes since its birth. He also added that if the wholesale insurance industry did not adapt to technological shifts, the results would be dire.
But is Xavier right? Is it true that insurance has not changed much since the Industrial Revolution?
The slow evolution might not be noticeable for the outsiders, but it does exist. Technology is now changing how the wholesale insurance industry is treated internally and on external levels too.
The financial sector of the insurance world has been the slowest to evolve but it has managed to come up with some great alterations and advancements in technological terms. But what are the technological changes? Are they so minor that they go unnoticed or are people not paying much attention to the wholesale insurance industry?
Let’s dig into the technological advancements and how they have changed the game for the insurance businesses!
Many insurance companies, whether wholesale or not, hire a bunch of people who underwrite and also act as claim adjusters for the company. Since staffing is expensive, this can be a huge expense for the business owner
Additionally, relying on manual labour is time-consuming and the risk of human error is high. However, those days of claims taking one to two days to write up are gone. Data can now be analyzed digitally, meaning that it only takes a few minutes to compare large data sets. This has also made the insurance hiring process a lot more efficient.
Telemetry has been an insurance industry buzzword for some years now as more insurance companies are partnering up with sensor companies to help protect their clients’ homes.
Systems like leak detection, temperature gauges or break direction systems are receiving a lot of attention for their benefits for both the insurer and the insured. These systems not only help protect peoples’ property, they also reduce the number of claims filed. This also helps wholesale insurance companies keep premium costs low.
Recent studies show that 35% of people who apply for insurance can easily fake their data in the insurance application.
This rise in fraud attempts is leading to an increase in insurance premiums that negatively affects both insurance businesses and their customers. However, red flag technology offers a solution.
Its analytics capabilities help insurance companies identify unusual activity, data or behaviour, which is essential in spotting attempted fraud.
In this day and age, if you don’t exist online, you hardly exist at all.
Web analytics help the wholesale insurance business owners find and vet potential new clients. It also helps identify fraudsters by collecting data through the web and social networks.
It’s clear that the insurance industry has entered the technological advancement phase and is still adapting to the shift. While not all of these changes are revolutionary, they are bringing some really positive and significant changes in the insurance world.
Technology is making standard processes more efficient and helping the wholesale insurance industry to flourish.