Advances in technology are revolutionising the insurance industry. This is happening at various levels where improvements are visibly taking place to provide enormous benefits to customers.
First, advances such as AI, data analytics and digitalisation are enabling insurers to become far more efficient in terms of speed, efficiency and reliability. This cuts costs, which can ultimately be reflected in the premiums consumers are charged. But the technology revolution goes far beyond merely enhancing processes. The streams of data and analysis tools now available also offer insurance companies valuable insights into the market segments and their customers’ specific preferences in far better ways than in the past. That in turn enables them to create much more attractive and tailored products through smart segmentation and provide products at the right pricing structures that make sense both to the customer and the insurance operator.
Tech mitigates cybersecurity risks
New technology is improving the cybersecurity infrastructure of insurance companies, providing greater protection for customers’ data from leaks and hacking. Customers are also benefiting from insurers’ enhanced fraud detection techniques and anti-money laundering advanced capabilities, which enable companies to focus more closely on their core mission of providing high quality insurance products and services.
The way customers interact with insurance companies is also undergoing profound and exciting changes. Mobile apps, enhanced chat services, and personalised portals are empowering customers and making their experience more satisfying and streamlined, starting from enquiries and obtaining quotes or buying policies to filling in a claim form and having their questions satisfactorily answered and receiving resolutions effortlessly and promptly.
New technology is improving the cybersecurity infrastructure of insurance companies.
However, not all insurance companies in our region are succeeding in adapting quickly to this new technological landscape. Technology used inappropriately can result in customer frustration and disappointment. It requires skill, effort and resources to integrate technology into an insurance business and some operators are clearly ahead of the game in this respect. Nowhere is this clearer than in customer service and companies that are getting this aspect of their business correctly are both enhancing their reputation and able to retain and gain clients.
Another way in which companies are making use of technology is reducing their environmental footprint, from more efficient energy use to less need for paper. At Watania Takaful, for example, our technology helped us to absorb 325kg of CO2 and conserve 7 cubic meters of landfill space in 2023. In more practical terms, the full process to submit a claim with supporting documentation and receiving a resolution is fully conducted in a paperless manner for our motor Takaful for example, which saves time and energy for all parties.
As our industry continues to embrace innovation, the future of insurance is looking brighter than ever. We are on course to deliver ever greater value and peace of mind to individuals and businesses alike. ■
