Lengthy insurance papers are almost a thing of the past, thanks to the digitalisation of the insurance sector. Technology is also taking over the traditional insurance operations like claims, underwriting and marketing, to name a few. Getting an insurance quote and managing a policy can now be done with just a few clicks on the phone or computer. It indicates how crucial the role of technology has been in re-shaping the insurance industry. Insurance technology or insurtech drives creation, distribution, and administration in insurance companies. Mobile applications, insurance claims processing tools and software, and online policy management are a few examples of insurtech.
How is Insurtech Transforming the Industry?
Even though technology has already drastically changed the face of the insurance sector, it is incredible to know that it is still evolving. Emerging technologies like AI, automation and advanced analytics tools are already permeating the insurance market and making efficient, flexible, scalable, and personalised customer experience more mainstream. Insurance companies, especially those that focus on property, casualty, and life insurance, are increasingly investing in research and development to develop new tech-based solutions that can streamline their operations and help them provide a flawless customer experience.
Emerging Technologies in Insurtech
A large number of tech start-ups and businesses are investing in R&D to develop innovative insurtech. Several emerging technologies are expected to play a vital role in re-shaping the insurance industry in the coming days, such as machine learning, chatbots, telematics, blockchain, etc. However, the two technologies that could be the most crucial are:
AI-based tech is extensively being developed and utilised to create solutions that can help insurance companies gain new and in-depth insights at greater speed and efficiency. The majority of the companies are already using AI to streamline functions and make them more accurate. The areas that most AI-based solutions focus on include – Pricing, Claims Management, Underwriting, Sales and Distribution.
- Internet of Things (IoT)
The main focus of IoT in insurtech is the automation of data sharing. A lot of the ongoing research is aimed at developing IoT solutions such as smart home devices, sensors, and wearable technology that can provide extensive data for accurate risk analysis and more personalised insurance policy models.
The Role of R&D in Insurtech
There is no doubt that without R&D, the insurtech sector would not exist. As soon as companies started identifying the potential of new technologies to transform the insurance industry, they began investing in R&D to develop innovative solutions. These tech-based solutions have helped them make their operations more efficient and enabled them to deliver better, more personalised customer service. Everything from the development of innovative software and data analytics tools to the development of unique claims processing systems and improved customer-experience-based applications has been made possible by R&D.
Even though a large number of start-ups and established businesses are conducting pioneering R&D in insurtech, many are missing out on the government’s R&D Tax credits. The scheme has been designed to help innovative enterprises gain substantial funding for their R&D and is open to businesses from almost all industries, including insurtech. Any insurtech businesses that have achieved innovation can check their eligibility to receive R&D tax credits and can apply for the same with the help of R&D Tax experts like Datafox. Get in touch with us to learn more.