Two years into the global pandemic, it seems nearly impossible to remember what life was like before COVID. In that short time, life as we know it has changed dramatically and we are redefining what is considered "normal."
Given that, it should come as no surprise that the insurance industry has also experienced significant changes, particularly as it relates to technology. As such, we can expect technology within the insurance industry to continue to evolve in the coming year. While it's anyone's guess what "normal" ultimately will mean, there are a few trends we can expect to see impacting insurance now.
1. The Big Accelerator: COVID
According to Google Trends, the global search term 'uncertainty' rose approximately three times between the end of December 2019 and mid-September 2020. Without a doubt, the COVID pandemic has unmasked risks and uncertainties that very few individuals and companies ever considered just two short years ago.
COVID has also forced insurance organizations and executives to think about this new landscape and how to use it as an opportunity to drive innovation. The insurance industry has often been viewed as slow-moving and reserved. COVID has accelerated changes in underlying conditions and challenges, driving the industry to increasingly embrace new technologies. But is the industry responding fast enough?
2. The Insurance Technology Gap
With more pressure to provide tech solutions to customers as an alternative to face-to-face contact, there has been an urgency in the demand for technology. On the plus side, technology is enabling the insurance industry to undergo a positive transformation. This fundamental shift for the industry will allow for better customer service while improving operational efficiency — supporting two critical components for a business today.
Much of this technology has largely been focused on the customer experience — instant service, straight-through processing, and more.
There is also a tremendous opportunity to help insurance organizations, and the people within them, use technology to make teams and staff more effective, particularly in a world where work-from-anywhere is becoming the trend. Many companies opted to go fully remote, and some are giving employees the option to never return to the office. These organizations need the right tools to maximize productivity and facilitate collaboration.
While the industry is taking a lot of positive steps in the right direction, innovation in the insurance industry can be slowed by reliance on legacy systems. Difficulties with adopting new technologies and processes quickly can create problems when insurers are trying to meet the expectations of customers, and workers, in younger, all-digital generations.
3. Mobile Apps
One key to appealing to all consumers, and especially to younger consumers, is the ability to deliver services through mobile applications.
About 1.96 million mobile apps are available for download in Apple's App Store alone, and those mobile apps are expected to generate about $935 billion in revenue by 2023.
Average Americans check their phones every 12 minutes, with 88% of the time on mobile devices spent on apps.
For insurers, developing secure, functional and engaging mobile apps for consumers is now a critical requirement.
A straightforward, user-friendly app can help customers get information and complete tasks without the need to involve a human agent. Self-service allows insurance organizations to automate back-end processes and enable more digital intake, leading to lower costs and a better customer experience.
