The trends coming to the world of insurtech in 2020 are proof that technological advances are showing no signs of slowing down, and insurance companies need to make a decision: adapt or die.
These trends, which will be at the forefront of insurtech this year, represent both an opportunity and a threat for insurance companies: what they need to do to provide a service that won’t see them being left behind, and how they can get ahead and offer new services to improve customer satisfaction and trust.
Blockchain and data personalisation with the Internet of Things (IoT) are some of the key aspects in 2020 that promise to take technology in insurance to the next level.
Having a great structure in place to accommodate innovations and technological developments offers no guarantee of success. Without a team that is well-prepared to implement the changes, it’s an almost impossible task.
Insurance companies’ goals should go in two directions. On the one hand, keeping hold of more experienced staff, and on the other, making themselves attractive to young talent, generating a dynamic image. This translates into the possibility of retaining talented employees, offering them a position in a company that is taking technological development to the next level.
Customers: people Vs numbers
Now that thanks to technological advances we can obtain data via technologies such as the Internet of Things, insurance companies can see customers as individuals, not a group of people. This means they can understand their needs better, and offer more personalised advice.
But it’s logical that doubts will follow in terms of accepting whether to share data on their location or other private details with businesses. This is the task of insurance companies, who must be transparent about obtaining customers’ data and the way they use it, and it must all be done ethically.
Adapting insurance companies’ infrastructures to the cloud is the next step. A job that’s on the “to do” list for 2020. It’s a fact that users now prefer to have everything on their mobile phones, and check what they need at any time and anywhere. Users are looking for speed, agility, and convenience.
But taking this structure to the next digital level is a complicated task. Many businesses have a two-fold task: they need to create a large-scale tech infrastructure, and they also need to fight against obsolete, inherited systems. Both of these challenges entail time and money.
To this effect, businesses have started by adapting the architecture of their application programming interfaces (APIs) and microservices, meaning they can integrate communications between products and services without resorting to a huge infrastructure: something which would entail a much higher financial outlay.
Artificial intelligence (AI)
Will businesses that fail to adopt AI in their day-to-day be left behind? The answer is an unequivocal yes.
AI is still far from perfect, and it still needs humans to do its job. But even with that in mind, the key advantage for insurance companies is that it makes processes more efficient and can optimise things such as the detection of fraud and money laundering.
Integrating blockchain technologies in insurance companies will have a huge financial impact. Blockchain is a technology that guarantees that information can be shared in a way that protects against fraud and is easy to verify. Thanks to the minimum risk of duplication, its transparency, and its security, insurance companies can reduce administrative costs, for example in processes required relating to claims and verifying payments to third parties.
Are insurance companies ready to adopt these insurtech trends in 2020? At MAPFRE, our answer is yes.