Top Insurance Tech Trends for 2023
5 min read | MARCH 25, 2023
An Increase in Technology Purchasing
As insurance agencies alike continue to navigate the turbulent economy left in the wake of 2022, there will be an expectation to focus on cost-cutting measures as a means to remain competitive. However, rather than solely tightening their belts, these companies will be looking to invest in critical technology solutions to support their business initiatives, drive growth, and help differentiate themselves from their competitors. Such technology investments will specifically be able to help property and casualty insurance companies in a number of ways. This includes, but is certainly no limited to:
- Help insurers streamline their operations and reduce costs by automating routine tasks and reducing manual errors.
- Analyze large quantities of data to identify fraudulent claims and mitigate losses.
- Improve their customer experiences by providing personalized services and making it easier for policyholders to manage their accounts.
- Better manage risks by providing real-time data on potential threats and enabling faster response times.
By differentiating themselves with innovative technology solutions, insurers can attract new customers and retain existing ones. In this way, technology can help insurance companies remain relevant and successful in the years ahead.
A Consolidation of Insurtech
A key aspect of property and casualty insurance companies investing in new technological advances will be done in effort to consolidate their pre-existing insurtech solutions. Consolidating disparate systems into one can not only help reduce complexities and simplify IT infrastructure, making it easier to manage and maintain, but it can also help companies eliminate redundant systems and applications, reducing costs and improving efficiency. Further, consolidating technology aids in the improvement of data accuracy and enables faster decision-making by providing a single source of truth for information. This single source of truth can offer a personalized experience for customers by offering relevant products and services to best fit their needs and provide a consistent experience across channels. By improving the customer experience, insurers can increase customer satisfaction rates, leading to greater customer loyalty. After all, a happy customer is a loyal customer, and loyalty can be a powerful driver for business success.
Improving the Client Experience
These days, customers and clients expect personalized experiences as easy and accessible as browsing on Amazon for whatever they’re shopping for. Studies show that 72% of consumers want the businesses they buy from to recognize them as individuals and know their interests and 76% see personalized communications as a key contributing factor to even considering the company in the first place. Within the property and casualty insurance industry, the application of technology can greatly improve the policyholder experience. For example, insurtech solutions can use artificial intelligence (AI) to automate the underwriting process and provide policyholders with near-instant quotes. It can also offer digital channels that enable policyholders to manage their policies and file claims online, increasing convenience and accessibility. Other ways that insurtech can help improve the client experience for P&C insurance policyholders includes:
- Gain insights into customer preferences and behavior, allowing them to offer tailored policies and services that fit the policyholder’s specific needs thanks to intelligent data and analytics.
- New technologies can help insurers collect and analyze data more effectively, resulting in more accurate risk assessment and pricing, preventing the dreaded “hidden fees”.
- It can make the claims process more efficient and transparent. Through the use of mobile apps and other digital tools, policyholders can easily submit claims, track their progress, and receive updates in real-time, which can not only reduce the time it takes to process claims but also increase transparency.
- It can streamline the client onboarding process, enabling policyholders to get the coverage they need and receive the benefits they are entitled to quickly and without obstacles.
As digital platforms and ecosystems continue to rise, so does the opportunity for insurers to embed insurance seamlessly into various products and services. And as more consumers embrace the convenience of these digital platforms? The demand for embedded insurance will only continue to grow! Insurers who embrace this trend will have a significant advantage in meeting customer needs and differentiating themselves from competitors. By embedding insurance into products and services, insurers can provide customers with a seamless and convenient insurance experience, while also increasing their revenue streams. There are a number of ways that this can help policyholders in the P&C insurance sphere:
- When a customer purchases a new home or renovates an existing home, embedded home insurance can be triggered automatically to provide coverage for damages or losses due to events such as fire, theft, or weather-related damage.
- New set of wheels? Embedded auto insurance can provide coverage for accidents, theft, and other covered events.
- If a customer decides to expand their business and rents a commercial space, embedded commercial insurance can be triggered to provide coverage for any damages or losses.
- Home DIYs are risky, but so is hiring a contractor. Embedded contractor insurance can be triggered to provide coverage for any damages or losses related to the project.
Embedded insurance can be triggered in a number of ways in the property and casualty sector, providing policyholders with convenient and timely coverage for unexpected events or losses – and ultimately, total peace of mind.
Advancing AI Capabilities
Advancing artificial intelligence (AI) capabilities has already proven to be instrumental in driving growth and innovation in 2023 (hello, ChatGPT), but what does this mean for the property and casualty insurance industry? For one thing, AI technology can analyze vast amounts of data to identify patterns and make predictions, helping insurers to make more informed underwriting decisions, reduce claims fraud, and better understand and manage risk. Additionally, AI-powered predictive analytics can be used to forecast potential losses, allowing insurers to price policies more accurately and optimize their portfolios. AI chatbots, like ChatGPT, can significantly improve the client experience as well by:
- Providing tailored responses that meet individual policyholders’ needs and preferences by leveraging customer data and machine learning algorithms.
- Accessible 24/7, making it easier for policyholders to get answers to their questions and resolve issues at any time of day. This accessibility can lead to higher customer satisfaction and loyalty.
- Nearly instantaneous responses means that insurers can significantly reduce response times and improve the overall customer experience.
- Automating routine inquiries and simple issues can help insurers reduce customer service costs while simultaneously freeing up human customer service agents to focus on more complex inquiries and issues.
In 2023, property and casualty insurers can expect to see advancing AI revolutionize the policyholder experience by providing personalized, accessible, and cost-effective customer service that happens at lightning speeds.
Returning to Pre-COVID “Normal”
Ultimately, the COVID-19 pandemic forced companies everywhere and of all industries to go into survival mode and adopt a reactionary growth strategy in an attempt to mitigate the immediate challenges of the pandemic. However, as the pandemic begins to become more of a memory, there is a growing shift towards returning to pre-pandemic “normal” operations. This includes a focus on sustaining business initiatives and saving money, driven by the need to build resilience and stability in the face of ongoing economic uncertainties and challenges. Particularly within the property and casualty insurance industry, agencies are now looking to invest in critical technology solutions to support growth and differentiate themselves from the competition, while also reining in their expenses to improve profitability. Furthermore, insurers are looking to return to a more customer-centric approach that emphasizes personalized interactions and a seamless experience across channels. One way to achieve these goals is by leveraging insurtech solutions, which, as we’ve discussed, can help P&C insurers improve operational efficiency, reduce costs, and improve the overall customer experience.
Environmental, Social and Governance Concerns
There’s a new customer property and casualty insurance companies must be prepared to serve. Millennials and Gen Z’ers have reached the ages where they’re buying properties and research shows that their values differ dramatically from the generations that came before them – particularly as it pertains to consumerism trends. One of these is a business’s social and environmental responsibilities. Brian Solis, VP of Global Innovation at Salesforce, notes that, “when it comes to important issues, companies can’t stand on the sidelines. Your values are an important part of your brand”; making environmental, social, and governance (ESG) considerations increasingly important for property and casualty (P&C) insurance agencies. P&C insurers that demonstrate strong ESG practices are likely to be viewed more favorably by younger generations, who prioritize social responsibility and sustainability. For example, insurers that promote renewable energy sources or have a strong track record of social responsibility are more likely to attract younger policyholders. Moreover, incorporating ESG considerations into their risk management strategies can help insurers mitigate potential losses and reputational damage associated with ESG risks.
How Salesforce Can Help
Salesforce is a super-charged system that can not only help to address many of the anticipated insurtech trends, but it can also help future-proof insurance agencies. By leveraging Salesforce’s customer relationship management system, P&C insurers can better manage their interactions with policyholders across multiple channels, provide a single view of the customer and enable personalized experiences. Further, Salesforce’s AI-powered chatbots can help automate customer service interactions and with their recent announcement of Einstein GPT, Salesforce will likely be a pivotal driving force for insurance industry growth in the coming years. With so many invaluable tools at their fingertips, P&C agencies can future-proof their business by focusing on customer experiences and operational efficiency to differentiate themselves from competitors and succeed in an ever-evolving industry.
As we look ahead to 2023, we can expect to see an increased emphasis on embedded insurance, the investment in the consolidation of technology systems, and the integration of AI-powered chatbots. We can also expect to see insurers prioritize ESG considerations as younger generations enter the market. It is important for P&C insurance companies to stay ahead of these trends, as failing to adapt to the changing industry landscape can result in lost opportunities and a decline in revenue. What are you waiting for? Get ahead of the curve now and discuss ways that you can begin investing in insurtech to support your agency’s initiatives in 2023.
Access Global Group’s team of certified experts know Salesforce inside and out. This means that when they come to you, no stone is left unturned and they’re able to solve any conflict with agility and accuracy. Regardless of where you are in the digital transformation journey, Access Global Group will provide customized solutions that align with your goals so you can focus on not only reaching them, but going far beyond what you thought was possible. Our unique project methodology of customer centricity allows us to provide intuitive solutions that are acutely catered to your organization’s needs. And as your premier Summit Salesforce Partners and Consulting Services/Managed Services experts with over 15 years in the industry, we’ll use our technical expertise to meet your unique needs and generate real change within your organization.
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