The Implications of Tech in Insurance
Technology is a driving force for many industries, and insurance is no different. Not only do agencies have to adapt for greater technological risks, but they also have to be prepared to utilize new technologies to better their own practices.
Technology truly is a double-edged sword. It can crash an entire enterprise or facilitate exponential growth. For insurance companies, technology has brought with it three key factors that will define the future of the industry.
How do you insure information?
Businesses run on data. It’s the fuel that drives every business process. Because more and more data is going to the cloud, federal and state legislators are beginning to require security plans and procedures to protect confidential customer information. Some insurance agencies have added cyberinsurance policies, while others have simply added cyberinsurance features in a current policy. With cybersecurity a key business concern, insurance agencies must find a way to provide a comprehensive security package that meets federal and state requirements.
How do you gauge risk for something that doesn’t exist yet?
Just like the technological landscape is changing how insurance agencies interact with their clients, changing social norms is doing the same. For example, with the increased emphasis on ride-sharing with applications like Uber and Lyft, how do insurance agencies insure that vehicle? Is Uber responsible? The driver? The individual riding? These questions bring with it a new set of opportunities for insurance agencies to reach out to and engage with new clients.
How do you use technology to better your agency?
Risk profiles are the determining factor of a policy-holder’s premium. But these profiles are based on statistical models and identifiable markers in a policy-holder’s history. What if technology could help you create those risk profiles? Real-time data can help you better understand your policy-holder’s driving habits in order to make those risk profiles more accurate. This data – gathered from biometrics and telematics within any given car – can help you pinpoint your risk profiles to better set your premiums.
Contact us for your free technology assessment today!