4 Ways Technology Is Shaping the Insurance Industry
Technology has penetrated all areas of life and it's continuing to cause a revolution in most sectors of the society. The Insurance sector is one of the industries that has undergone major changes due to technological advancements. Technology has caused the sector to have both negative and positive impacts. Below we have discussed four ways insurance has benefited from technology:
Social Media
Social Media has managed to penetrate all industries. These days almost all companies have various social media platforms where they not only engage their customers but also market and advertise their companies. Insurance companies and insurance have not been left behind on this bandwagon as they are also using it to reach out to clients.
Insurance agents are using social media to reach out to potential clients and also to engage existing ones. Social media has also made it possible for the clients to reach out to insurance agents in case they have any queries.
Internet
The internet has become the modern marketplace and practically every product and service are sold here. All businesses have websites and insurance companies are not any different. These websites are used to advertise and market their various products and services. The insurance companies use websites to inform their customers about their various packages.
It’s not a secret that these days before deciding on purchasing anything most people carry out their research on the internet. Therefore, if an insurance company has a website; it stands to gain a lot from it. This is only if the website is organized and well laid out.
Managing Finances
Having a website sometimes cuts out the cumbersome process of meeting some of the insurance clients face to face. Most of the clients decide on their choice of premiums from the insurance company website. Through the website, they will call the insurance firm only to confirm about the products and services attributed to the premium.
After this, some of them might opt to pay for the premiums through their online banking accounts. This means that the money will be electronically wired to the company. This wireless transaction practically cuts out the need for an insurance agent.
Driverless cars have already started being introduced by companies like Google and Tesla. It is expected that by the year 2030, the technology will have significantly taken over American roads. The introduction of these driverless cars means the car insurance game will have to change significantly. This is because some of the premiums will have to be modified since it’s the cars that will be responsible for road accidents. If a driverless car causes an accident with a car with a driver then who will be liable for the damages cost. Some of the issues that will crop up will also affect the manufacturer of the car. This is because the accident might have been caused by a technical fault that the car had. This incident translates to a commercial auto insurance policy falling squarely on the manufacturer.
Advanced Software
An insurance agent manages a significant amount of information about their clients. Software such as the Customer Relationship Management assists them in organizing the information. In addition to this, this software will also significantly help the insurance agent in managing and accessing the information.
The various insurance agents and companies will also have the opportunity of storing the information in an orderly manner. In such a way that they will be able to access all correspondence, accounts, policy information and any other details about their clients. As a result, this will help in making the customer experience better. There is also software that will provide prompts for auto reminders such that the insurance company can politely remind the customer when their premium is due.
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