Known for its conservative outlook, the insurance industry is probably one of the late adopters in technology. Traditionally insurers rely heavily on attracting and retaining long-term customers, strong brand recognition, and extensive agent networks to compete in the marketplace. However status quo is no longer an option as consumers embrace technology in almost all facets of their daily lives, including buying insurance online from the comforts of their homes.
If we look at the future of driverless car from Tesla, such self-driving cars powered by technology will become a reality and available for consumers in the near future. Underwriters in the insurance industry need to start thinking what are the risks and what coverages will be provided to the drivers and third parties in the event of an accident. All these factors will not only have a direct impact on the insurance premiums, but also the staffing personnel whether as a legal counsel or a claims administrator. Each of the staff will require specific technical knowledge to be able to handle such claims.
According to Canada Post, more than three quarters of Canadians shopped online in 2015, with 25% of them considered as frequent shoppers. Moreover the type of purchases has expanded beyond the traditional purchases such as books, travel and clothing. The growth of smartphones and tablets have enabled customers to obtain real time information and pricing at their finger-tips without having to interact with a human being. For example, one can easily purchase travel insurance within minutes via the internet. Such trends will grow in the near future as customers expect more efficiency in their transaction processing.
Insurers who can adapt quickly to the evolution of technology and increasing customer expectations by transforming their operations, policies and personnel will be in a better position to capitalize on the growth opportunities and improve their bottom line.
References
Canadian Internet Registration Authority. (2015). Factbook . CIRA.
de Waal, M. (2016, March 9). Blog: Globaliqx. Retrieved from http://www.globaliqx.com/tech- trends-insurance-industry-predictions/
Friend, D. J. (2015, May 12). 76% of Canadians shopped online last year, Canada Post says. The Canadian Press. Retrieved from http://www.cbc.ca/news/business/76-of-canadians- shopped-online-last-year-canada-post-says-1.3070651