Ashwita is from PolicyStreet, a Financial Advisor company approved by the Central Bank of Malaysia since 2016.
The 3 Reason How Insurtech Technology Will Change The Insurance Industry
1. Blockchain Technology
Blockchain stores static records and/or data without any central coordination and is opened to all parties to view any insurance related records. Large amounts of data on blockchain can be properly managed and shared. Blockchain is known with precision when it comes to calculations, this will benefit the reinsurance side of things. This helps the Property and Casualty (P&C) Insurers on knowing the remaining amount of money as they indemnify the claims. The transactions are also protected by digital signatures and are highly resistant towards data manipulation and fraud. Safety is definitely not an issue, all client's personal details can be stored safely and this in return will reduce any risk of fraud or scam.
2. Internet of Things (IoT)
A vast amount of data can be helped to be gathered by IoT, an ecosystem of interrelated computing device that enables everyday objects to receive and send data. Minimal intervention required for claims and pricing, IoT helps to provide rich new data for actuaries and underwriters to precisely assess and perform price risk for the policyholders. Data collected can aid insurers to create personalized insurance products specifically catered to an individual and this can capture the distinctive risk profile and consumer's requirements. This is all from the marketing perspective of things, where as from the claim perspective IoT definitely helps to power automated loss notifications based on sensor data.
3. Artificial Intelligence (AI)
Artificial Intelligence is something everybody knows and it is well-known among the industries worldwide. When it comes to underwriting or handling/settling claims for insurance companies, this is where AI comes in handy. Also other services such as marketing, customer service, data analysis or even fraud detection. Especially when it comes to customer service, chatbots are something that can immensely help out. Chatbots can be used to conduct online chat conversations via text or text-to-speech with liv human agent. There are no time limitations with chatbots, it is available 24/7 and they can help with any enquiry under the sun, be in general advise or problem solving or even complaints.