Technology trends that have poised to transform the nature of BFSI industry

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By Neerja Kapur, Chairman & Managing Director, New India Assurance

New Delhi (India), May 10: India’s general insurance sector is on the verge of a technology revolution that would fundamentally alter the way the sector operates. Since the development of technology, insurers have been able to improve client satisfaction, offer better goods and services, and streamline their business processes. Several significant technological advancements are expected to significantly alter the Indian insurance market over the next decade. To enumerate some of these trends in detail:

Machine learning (ML) and artificial intelligence (AI)

The insurance sector in India is expected to undergo major change as a result of AI and ML. Insurance companies are utilising AI and ML to streamline their underwriting and claims procedures as well as create new products that are more suited to the demands of their customers. Additionally, risk assessment, fraud detection, and consumer engagement are being enhanced by AI and ML. These technologies enable insurers to swiftly and accurately process massive amounts of data, which improves decision-making and the client experience.

The “Internet of Things”

The way insurers gather and analyse data is about to undergo a change thanks to the IoT. To track customers’ actions, analyse their risk profiles, and monitor their behaviour, insurers are employing IoT devices like wearables and telematics. Fraud detection and prevention are other applications for IoT devices. This information can be used by insurers to provide individualised goods and services that are more suited to client requirements. For instance, a company may provide a pay-as-you-go auto insurance plan based on the customer’s driving behaviour.

Blockchain

By offering a safe and open platform for transactions, blockchain technology has the potential to revolutionise the insurance sector. Blockchain technology allows insurers to securely store and share data, which can lower fraud and increase transparency. Additionally, blockchain can assist insurers in streamlining their claims procedures and lowering expenses. Smart contracts can be used by insurers to automate the claims processing process, which can cut down on the time and work needed to resolve claims.

Chatbots and Virtual Assistants

Insurance companies are utilising chatbots and virtual assistants to enhance customer service and cut expenses. Customers can get basic assistance from chatbots, who can also make tailored recommendations. Complex questions can be handled by virtual assistants, who can also offer tailored guidance. These tools can help insurers increase client engagement and loyalty.

Cybersecurity

Given the growing frequency of cyber-attacks, insurers are extremely concerned about cybersecurity. Insurance companies are investing in cybersecurity systems to safeguard client information and stop data breaches. Firewalls, encryption, and intrusion detection systems are some of these technologies. These technologies can be used by insurers to safeguard consumer data and preserve their good name.

Cloud computing:

Insurance companies are using cloud computing to boost productivity and cut expenses. Insurance companies can store and analyse data using cloud-based solutions, which can help them avoid investing in costly IT infrastructure. Access to real-time data and improved team collaboration are two other benefits of cloud computing that can help you make better decisions.

In conclusion, technological improvements are causing a radical upheaval in the Indian insurance sector. Insurers are utilising technology like AI, ML, IoT, blockchain, chatbots, virtual assistants, cybersecurity, and cloud computing to enhance customer experience, improve business operations, and provide better goods and services. These innovations might completely alter the way Indian insurers conduct business and open new avenues for expansion and financial success. In order to stay competitive in the market, insurers must adopt these technologies and stay on top of emerging trends.

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