The Future of Compliance: Insurance Trends for 2024
Tech is revolutionizing the insurance industry by automating and enhancing efficiency, from customer onboarding to policy placement to claims handling.
But what are the forces driving the future of compliance?
Insurtech is driving change in how insurance is conceived, developed and experienced. Let’s discover what they are and how they’ll redefine the insurance landscape in 2024.
Use of Data Sets
As more of the insurance industry relies on technology for greater efficiency and lower costs, there’s a greater need for cleanly structured data for analytics and insights.
In the insurance industry, issues arise when agents lack complete client data, hindering their ability to advise clients on pricing and coverage. For instance, correctly determining the industry classification, such as distinguishing between a barber shop and a beauty salon, is crucial, as it significantly affects insurance policies and premiums.
To effectively support decision-making for agents in underwriting and application processes, as well as to fuel AI models, rich data sets demand accurately sourced and structured information.
There are several ways for insurance companies to ensure their data is clean. Leveraging data cleaning tools offers many benefits, such as data validation, reduced manual effort, removal of duplicates, precise risk assessment and improved customer service. Simply put, clean data enables better decision-making and fosters customer trust by ensuring accuracy and reliability in information handling.
Shaping up the future of compliance with AI and ML
Once insurance companies have their rich data lakes full of accurate information, they can let AI and ML do all the hard lifting. AI and ML can analyze vast amounts of data from multiple sources and external data from IoT devices, to enhance the accuracy of risk assessment.
Moreover, automation and AI-driven chatbots can streamline the claims process, reducing the time and cost of claims handling, while image and text analysis can expedite claims assessment by quickly identifying relevant information.
Analyzing a broad scope of customer data through AI programs and tools allows insurance companies to gain deeper insights into their clients’ preferences and behaviors, enabling insurers to offer more personalized services and policies.
Embedded Insurance
As people’s time is precious, customers want ease and speed when buying insurance. But the current process is complex and time-consuming.
To solve this pain point, insurance companies can now embed their offerings at the point of sale (POS) through application programming interfaces (APIs), allowing them to market their products exactly when customers need them. As we head into 2024, embedded insurance is expanding beyond travel insurance that you can purchase while buying flights or an all-inclusive package deal.
This trend not only enhances the customer experience but broadens the reach of insurance to new consumer segments, widening the market.
Customer-Facing Digital Tools
Businesses must focus on a customer-centric approach to sell a product or service.
This means building products and services with customer wants and needs and making the buying, renewal, and management process. In addition, many insurance products have become commoditized.
Furthermore, by investing in easy-to-use mobile apps and online portals, online claims submission tools, smart form documents with e-signatures and telematic apps, insurance brokers and carriers can differentiate themselves from their competition by providing an exceptional customer experience.
Use of Telematics and IoT
Telematic devices can be used to monitor driving and collect data for the vehicle owner. Furthermore, advanced telematics can also be used for real-time accident data.
The development of the IoT has advanced the use of telematics. This provides near-real-time visibility into key metrics, including fuel usage, engine status, vehicle location, driver behaviors and vehicle maintenance history.
Moreover, With this new in-depth data collection, carriers can make advanced underwriting decisions and design insurance products that better align with their policyholders’ needs.
SmartCompliance, the future of compliance
SmartCompliance is the go to software to keep compliance requirements, rates, and reports in a centralized location. Withouth having to manually upload documents thanks to the OCR feature, you free your team’s time to persue major goals.
Check out what smartcompliance can do. Ask for a demo and talk to our team
