Benefits Of Digital Technology To Insurance Providers

We live in a digital era where everything is almost operated using high tech devices that are connected to the World Wide Web. Many companies have attested to the advantages of social media and how it has helped them connect with consumers. With the use of technology and the internet, tracking and communication is possible – it does not matter where you are or the time of day.

According to a report published by Frost & Sullivan, the market for global sensors will be gathering over $162 billion before the end of 2019. This trend is now commonly known as the IoT or Internet of Things. This has caused a disruption in various industries all over the world and it comes as no surprise that the insurance industry is impacted as well.

There are many ways wherein insurance providers that are adept to the traditional ways will be able to cope with the digital revolution and utilize it to succeed.

  • The insurance systems of a traditional broker can be re-imagined with the help of digital technology. Take for example the startup called Lemonade based in the United States. Initial funding gathered was $13 million coming from Sequoia Capital. The startup is offering consumers the chance to be able to get insurance through utilizing self service technology. Modern insurance companies are now making use of the advantages of social networking together with crowd sourcing.
  • Venturing into new markets is the second step. Take into consideration the prospect of cyber insurance because of the small market. This is an opportunity to be able to the remaining market which is still untouched by the limited number of cyber insurance companies.
  • Technologies that are commonly seen in business setups are now available for homes including home security, online home appliance, video monitors and entertainment systems. This is a chance to offer insurance in the form of loss prevention and mitigation.
  • There are many advantagesof social media and one of them is to be able to get close and personal with clients. Connecting and communicating with them will give insurance providers a chance to provide better and personalized customer service.