Here are the top technology trends in insurance industry 2024:

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AI:

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There is a buzz around AI everywhere and the insurance field is no such exception. Insurance apps and websites involve complex processes such as filing claims and managing policies that deal with colossal amounts of data. AI in insurance can analyze this huge data quickly, improving accuracy and efficiency. This saves a lot of time and money than manual intervention. AI can not only be used for claims processing but also for processes such as underwriting, fraud detection, and customer service. Every app and website (be it insurance or not) has now incorporated AI-powered chatbots and virtual assistants to provide 24/7 customer support. This is especially important in insurance apps where users are already distressed by an unfortunate event occurring in their lives such as an accident where their vehicle is damaged. Such events can occur during any time of the day and the user would need prompt help and support. 

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Predictive Analysis:

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AI in insurance takes center stage again for predicting future outcomes based on the analysis of customer behavior data, the use of statistical algorithms, and machine learning technology. Such valuable insights can be implemented in numerous ways including customizing products according to each policyholder's special needs that increase customer satisfaction and strengthens their loyalty. It can also be used to detect fraudulent activities and suspicious patterns to promptly report the issue and mitigate losses. 

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Internet of Things (IoT):

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According to a report by IoT Analytics, the number of IoT connections increased by 18% across the globe in 2022 with the prediction that it will continue to grow. IoT refers to devices such as gadgets, applications, sensors, etc that exchange data over the internet. This technology has been rapidly utilized in many industries because of its clear benefits such as gaining valuable insights to create customer-centric products, reducing costs, and enhancing security. In the field of insurance, IoT can be used in similar ways such as:

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For Vehicle Insurance:

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Telematics, one of the IoT devices that are installed in vehicles allows insurers to gather insights on the driving behavior of users like speed, acceleration, braking, and location and this can help evaluate risk more precisely and design usage-based insurance policies.

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For Property Insurance:

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Insurers can collaborate with companies offering IoT sensors such as smoke detectors and high-tech security systems to mitigate damages and prevent serious losses of policyholders.

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For Health Insurance:

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With new gadgets such as fitness trackers and smartwatches that detect heart rate, sleep patterns, and other activity levels becoming a part of people's everyday lives, insurance companies can utilize this data collected to assess health risks and offer personalized health insurance policies. 

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Low code/ no code:

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One of the technology trends in insurance industry is seeing digital insurance move in the direction of democratization with many companies using low code/no code platforms to save money on engineering hiring costs and empowering businesses to launch their product. Many such platforms also focus on compliance and security. Even if the company has an IT team, they help in solving issues surrounding work backlogs and increasing overall productivity. Insurers can leverage easy and intuitive drag-and-drop features to launch their products quickly in the market, manage their platform and update as per business and customer requirements. 

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Blockchain:

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Another key technology trends in insurance industry 2024 is blockchain. This is because the digital insurance sector deals directly with money and one of the most prominent fears is fraudulent activities. By storing policy information, claim details and other relevant data on a blockchain, sensitive information and verification of finances can be exchanged quickly and efficiently without the breach of any data. Insurers can thus prevent unauthorized access and enhance data privacy compliance.

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Conclusion:

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These technology trends in the insurance industry 2024 are shifting the insurance sector into an increasingly digital and customer-centric landscape. There is also a conscious focus on security and mitigating losses which becomes way easier with these technologies.

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Source:

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1. https://iot-analytics.com/number-connected-iot-devices/#:~:text=In%202022%2C%20the%20market%20for,27%20billion%20connected%20IoT%20devices

2. https://www.mordorintelligence.com/industry-reports/digital-insurance-platform-market#:~:text=Digital%20Insurance%20Platform%20Market%20Analysis,period%20(2023%2D2028)

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