Now that humanity is in the Fourth Industrial Revolution, technology is developing at an exponential rate compared to the linear technological developments of the past. Also known as Industry 4.0, the Fourth Industrial Revolution that we are experiencing is characterized by increased automation, the bridging of physical and digital worlds, and the refinement of technologies, such as drastically enhanced mobile technology, artificial intelligence, quantum computing, and the Internet of Things.
Similar to previous industrial revolutions, all of the above aspects of Industry 4.0 are – or are becoming – a part of our everyday lives. This challenges businesses from all industries, including the insurance industry, to adapt quickly to today’s landscape.
In this article, we will cover how business insurance is affected by recent technological advancements and how these will benefit insured businesses and insurers everywhere.
We will be covering the following points:
● Insurtech to Provide Group Business Insurance
● Utilizing AI to Quickly Provide the Right Amount for Claims
● Intelligent Chatbots For a Better Customer Experience
● Robotic Process Automation for More Efficient Services
● Enhanced Fraud Detection Using Data Science
1. Insurtech to Provide Group Business Insurance
Insurtech, a combination of the words insurance and technology, is the use of technological innovations to increase the accessibility of insurance and to also increase the efficiency of insurance processes.
Through Insurtech, a company called Foxquilt was able to launch its cutting-edge group insurance model, which allows small businesses to join groups with similar insurance needs. These groups will then be able to have a higher buying power, making insurance easily accessible to the members of the group.
Technological advancements like this align with how the ubiquity of digital marketing is leveling the playing field, allowing more small businesses to get started. Since there are more businesses stepping into the scene, they would need small business insurance they can afford, and Insurtech enables them to have just that.
2. Utilizing AI to Quickly Provide the Right Amount for Claims
Commercial auto insurance, among other coverage points, covers the damages sustained by a commercial vehicle in a car accident. In the past, it could take at least two weeks for an insurance provider to determine the amount to be paid. Customers would need to visit the workshop to get an appraisal, too. This old process is not only inconvenient, but customers are also in danger of getting a claim amount that is not enough for the repairs.
However, a company called Tractable has formulated an AI algorithm that can quickly and accurately predict the cost of repair. This technological advancement allows for a quicker resolution of claims.
3. Intelligent Chatbots For a Better Customer Experience
Nowadays, chatbots are everywhere. Although customer opinions about them are somewhat torn, there’s no denying that they have a high potential to improve customer experience for business owners that need business insurance.
Insurance providers are flooded with numerous questions and concerns on a daily basis – some being urgent ones and some that are more simple. Without chatbots, customer service representatives would need to spend a great amount of time filtering through various concerns, taking a significant amount of time to get to the urgent ones.
Nowadays, intelligent chatbots from companies like Spixii, are able to help customers and potential customers get faster resolutions for their issues. Additionally, most chatbots can provide access to a customer service representative, which is important if the customer urgently needs help. This is especially helpful in the business insurance sector wherein customers are usually business owners/leaders who are busy and need urgent answers to their concerns.
4. Robotic Process Automation for More Efficient Services
Robotic Process Automation (RPA) is a technological advancement that will allow business insurance providers to increase their speed and responsiveness, especially for clerical tasks that are abundant in the insurance industry.
Through RPA, repetitive and high-volume tasks are more quickly accomplished, thereby contributing to the overall customer experience. A few examples of tasks that can be taken over by RPA include the following:
● The registration and processing of claims;
● Preparing audit trails and documentation;
● Business analytics; and
● Cancelling policies.
5. Enhanced Fraud Detection Using Data Science
Various aspects of data science, like text mining, machine learning, deep learning, and predictive analytics, can be used so business insurance providers can have stronger fraud detection capabilities. This way, claims can be dedicated to the policyholders that really need them.
With the above exciting developments, one can only imagine what business insurance or any kind of insurance will look like in the near future. The only thing we can be certain of is that rapid adaptation (towards customer-centric improvements) is the name of the game.
Given the current landscape, we can look forward to a future with more accessible business insurance, faster insurance processes, less clerical work for humans in the insurance sector, more fraud-resistant commercial insurance providers, and more. It looks like a bright future for everyone involved!