How has Technology Impacted Insurance Claims

Technology has changed the way insurance companies approach risks and could fundamentally impact the entire industry in the long run. Today’s insurance market bears little resemblance to how it used to be a few years ago. Of course, the insurance sector keeps changing, but technology has accelerated the rate at which the insurance sector is changing. Here are a few ways technology has disrupted the insurance sector in the past few years.

Social Media

Social media has revolutionized the insurance industry’s customer service landscape. Communicating and solving customer issues have been made easier than before. Customers can tweet or post a complaint to an insurance company and get a response within minutes. Social media has kept insurance companies more in touch with their clients, leading to closer relationships between consumers and insurance agents.

Claims Experience

Claims have made many insurance companies lose money. However, technology has revolutionized the claim process, enabling insurance companies to save on claims. For example, pre-populated claims forms allow customers to fill out their claims faster because they don’t have to answer the same question repeatedly. With technology, an unpaid insurance claim attorney can provide their clients with real-time updates, and customers can get paid electronically rather than driving to a post office to collect a banker’s cheque.

The way customers report damage has significantly changed due to technology. Your insurance company can begin assessing damages immediately you send them videos and photos of the damaged vehicle or house. As a result, the claim process has become easier, accurate, and more efficient than before. Every insurance company strives to improve its claim experience, so we can expect more improvement as insurance companies find innovative ways to automate their claims process.

Data-Driven Underwriting

Insurance companies are founded on the same principles; Monthly premiums bring in money, while claims take the money out. But for an insurance firm to thrive, the amount of money brought in should be more than what is paid out as claims. Big data has changed the way insurance agents operate. It has enabled them to provide customers with accurate policy quotes. Insurance agents can determine the amount of claim a customer deserves by looking at their auto-insurance records and home history. With this, customers can get more accurate and fair policies customized to their life. Insurance companies now allow their customers to install a telematics device into their car to track time spent in the vehicle, distance covered, and speed. In turn, insurers are basing their policies on data captured by these devices. Data-driven technology has changed the way insurance companies underwrite policies, bringing in more accountability and fairness.

Marketing

A few years ago, insurance was just a local market. People had no option rather than getting their policies from insurers near them. However, the internet has globalized the insurance sector. Customers are no longer limited to insurance companies within their neighborhood because they can now compare insurance companies over the internet and determine the best option for their needs. Most insurance companies have websites where customers can learn more about their policies for free. In other words, the internet has transformed the insurance sector by providing consumers with more options than before.

The insurance sector keeps changing due to continued tech innovation. Fortunately, that’s a win-win for both insurers and consumers. Insurance companies can use technology to make intelligent decisions, while consumers can expect more personalized insurance solutions.