New technologies and insurance

Insurance coverage corporations, particularly these wanting to innovate, are additionally taking the digital flip. They’re more and more investing in expertise and introducing cutting-edge options into their manufacturing chains: standardization of sure duties, automation of practices, optimization of injury appraisal and evaluation, and many others.

Insurtechs are on the coronary heart of this revolution, with start-ups flourishing all around the world and counting on new applied sciences to supply progressive insurance coverage fashions and merchandise.

Based on Grand View Analysis, the dimensions of the worldwide insurtech market is estimated at 7.78 billion USD in 2023. It’s poised to succeed in 152.43 billion USD in 2028, accounting for a median annual development estimated at 310%.

Technological breakthroughs adopted by the insurtech market pertain primarily to:

• The Web of Issues
• Synthetic intelligence and machine studying
• Augmented actuality
• Cloud computing
• Drones
• Blockchain
• ChatGPT
• Social networks

L’assurance et l’web des objets

The Web of Issues (IoT) refers to all internet-connected gadgets able to offering correct real-time info on consumer habits. With the exponential multiplication of related objects, the worldwide IoT market has change into immense, providing a large number of latest functions which can be revolutionizing utilization and impacting the each day lives of people and companies.

Numerous sectors are actually being drawn to progressive IoT companies, together with business, transport, power, and many others. The American analysis agency IoT Analytics estimates that there will probably be 14.4 billion related objects worldwide by 2022.

Within the realm of insurance coverage, the IoT enriches present predictive evaluation fashions via the introduction of intelligently collected and analyzed recent knowledge. It is usually able to quickly deducing the likelihood of an occasion occurring.

Insurers’ investments in IoT options are booming and are poised to develop by a median of virtually 10% a yr as much as 2026.

In motor insurance coverage, related objects and built-in telematics gadgets facilitate the method of amassing knowledge on the motorist’s driving habits, which can be utilized to optimize danger evaluation and decide charges and premiums based mostly on the driving force’s driving conduct.

Synthetic intelligence on the service of insurers

The time period Synthetic Intelligence (AI), usually used to designate Machine Studying, refers to a machine’s capability to be taught ideas autonomously, enabling it to carry out sure human duties due to algorithms fed by a big mass of knowledge.

Synthetic intelligence expertise may revolutionize the insurance coverage business via:

• improved administrative administration,
• automation of underwriting procedures,
• extra correct danger prediction fashions,
• optimized buyer relations and extra related focusing on of insurance coverage merchandise,
• discount of claims processing occasions,
• fraud detection.

Policyholders, too, can make the most of AI functions to report a declare in actual time and request compensation, with out even any recourse to the help of an adjuster.

Based on Information Bridge Market Analysis, revenues from AI options within the insurance coverage market are estimated at 3.64 billion USD in 2022 and anticipated to rise to 35.77 billion USD by 2030, accounting for a median annual development price of virtually 100%.

Insurance coverage and augmented actuality

Augmented or digital actuality is a expertise that allows real-time integration of 3D digital components inside an actual atmosphere. This expertise is at present witnessing appreciable development, primarily within the luxurious items, tourism and retail industries.

In insurance coverage, the immersive expertise of this expertise allows claims to be simulated and harm to be estimated. Higher danger mapping might be undertaken due to the event of eventualities which can be kind of in keeping with actuality and with danger atmosphere.

Within the close to future, augmented actuality may change into a danger prevention instrument. Based on a report by Morder Intelligence, the augmented actuality market, at present estimated at 1.98 billion USD, is poised to develop by 151.93% between now and 2026.

Contribution of cloud computing to the insurance coverage sector

Cloud computing is the usage of IT infrastructures to retailer, handle and course of knowledge. It’s a means of organizing info methods (IS) based mostly on the dematerialization and outsourcing of IT useful resource administration to a service supplier.

The usage of the Cloud has change into a key component within the digital transformation means of corporations, together with insurance coverage corporations. This storage system was massively adopted through the Covid-19 disaster. It’s designed to raised safe knowledge, scale back prices and implement an IT infrastructure suited to teleworking.

The usage of the Cloud has change into a key component within the digital transformation means of corporations, together with insurance coverage corporations. This storage system was massively adopted through the Covid-19 disaster. It’s designed to raised safe knowledge, scale back prices and implement an IT infrastructure suited to teleworking.

Use of drones by insurance coverage corporations

Drones are unmanned aerial autos that fly mechanically or by distant management.

Within the insurance coverage business, drones are used to determine and assess, extra precisely and exhaustively, the harm attributable to pure or technical disasters (explosion, fireplace, hurricane, storm, and many others.) occurring in inaccessible geographical areas.

The booming drone market is at present estimated at 5 billion USD, in contrast with 1.8 billion USD in 2015. Based on present projections, the general worth of this market is predicted to succeed in over 63 billion USD by 2028.

Blockchain and insurance coverage

Blockchain is a expertise for storing and transmitting knowledge and not using a central management physique. The blockchain market is booming and is predicted to develop by 57% by 2026.

In follow, this method allows info to be saved transparently and securely. This expertise additionally makes it simpler to confirm and share knowledge, lowering the prices and time concerned in repetitive operations. The dangers of fraud or piracy would, subsequently change into minimal.

Blockchain can be utilized in insurance coverage to simplify the underwriting, evaluation and claims dealing with procedures, thus optimizing buyer expertise.

ChatGPT: a instrument that’s attracting the curiosity of insurers

ChatGPT is a conversational agent utilizing synthetic intelligence to talk, reply questions, create textual content or pc code.

The launch of ChatGPT on the finish of 2022 has precipitated fairly a stir. The robotic, which makes use of generative AI and NLG (Pure language Era) applied sciences, presents vital benefits for insurance coverage corporations when it comes to buyer help, predictive modeling, danger evaluation and product adaptation to market wants.

ChatGPT can reply a variety of queries, from essentially the most fundamental to essentially the most complicated ones, enabling insurance coverage corporations to supply a extra customized customer support.

The expertise additionally helps the automation of duties similar to coverage underwriting and the claims dealing with course of, which ought to scale back operational prices and pace up claims settlement occasions.

Social networks to revolutionize the insurer-insured relationship

Omnipresent in on a regular basis life, social networks, dominated by the American web giants (Fb, YouTube, WhatsApp, Instagram, LinkedIn, …) are witnessing the delivery of a brand new Chinese language participant, TikTok with 1.7 billion customers in 2022.

Based on a report printed on the finish of 2022 by Hootsuit, a social community administration instrument, and We’re Social, a communications consultancy company, 5.48 billion of the planet’s inhabitants are Web customers, together with 4.74 billion lively customers of social networks, that’s, 86% of Web customers and 59.3% of the world’s inhabitants.

Social platforms have profoundly revolutionized the insurer-insured relationship. The ability of the algorithms used has enabled insurance coverage corporations to focus on a a lot wider viewers, whose knowledge is collected and analyzed for higher personalization of the insurance coverage provide. Social networks additionally allow higher interplay with clients in actual time.

Consequently, insurers are supplied with new channels for speaking and advertising their presents, similar to focused promoting campaigns. Moreover, it is a mass-market means of introducing a model, creating proximity and presenting merchandise to an ultra-connected technology of customers.

Digitization: what are the stakes?

Regardless of the rising significance of digital methods and technological innovation within the insurance coverage business’s worth chain, extreme digitization raises a lot of considerations pertaining to:

• the usage of private knowledge: the boundaries between privateness and the general public sphere are being blurred,
• competitiveness: insurance coverage corporations which have invested closely in innovation are taking full benefit of cutting-edge applied sciences, creating an ever-widening aggressive hole with those that do not need entry to them,
• the issue of managing buyer relations for sure gamers,
• securing firm knowledge,
• disclosure of knowledge and leakage of delicate knowledge,
• operational optimization,
• the scarcity of certified personnel to help digital transformation inside corporations,
• reasoning errors: Some applied sciences ought to be used with warning, because the options proposed aren’t at all times completely dependable,
• considerations concerning the tempo of growth of synthetic intelligence.