How Technology is Changing the Insurance Industry

It’s no doubt that technology has made a massive impact on our lives. It’s changed how we communicate, how we access information, how we buy things, and how companies are run. 

Businesses have to adapt to the ever-changing world to stay ahead. The insurance industry is one area that has seen a lot of impact from advances in technology, and we’re going to go over exactly how. 

Better Efficiency 

In more recent years, insurance companies can work in a more productive way because of technology. The computer systems can keep track of all of your personal records and can be accessed in seconds. 

When you talk to a representative, they’ll be able to gather your information and offer help easily. The insurance broker doesn’t have to sift through files trying to find yours.

Improved Communication 

Technology has made a significant influence on the accessibility of communication. Most people walk around with a cell phone and can make calls at any time. 

Before, you’d either have to make an appointment with an insurance broker or be on hold for a long time. Now, you can reach insurance companies by phone, text, email, social media, or even do a video call. 

Many companies also have a live chat feature to get instant answers. The many ways we can communicate now has improved the way insurance businesses can reach their clients. 

Better Collection of Information 

Technology has assisted insurance companies in collecting information about their clients. For example, you can install a device to track your driving habits. The insurance businesses can record this data to deem you a safe driver or not. 

For health insurance, there are a lot more accurate tests you can take to find out if you’re at risk for diseases. With home insurance, there are advanced security systems to track activity around your home. You can use this if you make a claim on a robbery or a house fire. 

Thanks to technology, there are so many ways to collect accurate information to help make claims or premiums.

Advanced Marketing 

Insurance businesses can market a lot more efficiently. We have social media, online advertisements, and improved ways to get subscriptions. This has opened up a door for promoting companies. 

Before, you’d have to buy a newspaper ad or a billboard to get your company’s name out there. In today’s world, the internet is the best vessel to use. Having refined social media accounts and using online advertisements is a must to succeed as a business. 

It was reported that 71% of customers who have a positive experience on social media with a company, will recommend the brand to a friend or family. 

The Bottom Line 

Technology has changed how we do many things in life, and one of these is insurance. For the most part, it has made it more accessible and accurate for both sides. 

The main ways technology is changing insurance companies is by being more efficient, improving communication, collecting better information, and advancing marketing strategies.