The Next Big Thing In Insurance: Technology


The introduction and use of technology has improved and boosted sales for many businesses. It has validated the authenticity of most organization’s brands. A sizeable number of industries have been completely revolutionalised by innovation. Thus, is unquestionably applicable to the insurance sector in Nigeria. 

Technological advancement helps to makes a market progressively open and improves the way in which brands interact with their customers. However, this isn't generally the situation, as some industries have been completely revolutionized by innovation. This is unquestionably the situation with the insurance sector in Nigeria, which will continue to evolve at an incredible pace in the future. 


Technology has reduced the time required to process insurance and simplifies transactions between an insurance supplier and the buying public. 

The process of reporting a claim is cumbersome and time-consuming. In fact, the claims processes used today are much the same as they were decades ago, and this is one area of the market that has not been impacted by innovation. 

The Future of Claims Process 

The overwhelming number of claims processed daily and the desire to eliminate human error points to one simple solution, an application of artificial intelligence. 

This intuitive software would report the claim, audit the system and communicate with the customer directly, while doing away with outdated paper-based processes. 

The Future of Liability 

Research shows that 94% of all accidents on the road are caused by Human error. However, with the advent of driver-less cars now surely less than two decades away, the nature of liability would change completely from an insurance perspective. 

Typically, in a car accident, the insurance company of the individual found to be at fault is usually the one who pays after a car accident. But when there is no driver, this complicates how victims are compensated or who can be deemed at fault. 

Instead, vehicle manufacturers would need to assume responsibility for an accident and any damages incurred, rather than the individuals involved in a collision. 

This may seem far-fetched, but innovators such as Google and Tesla have already accepted liability in such instances, while Volvo and Mercedes-Benz have also followed suit. 

The Future of Risk Services 

According to Insurance Risk Services, some insurance agencies are now using drones to explore areas that have been hit by natural disasters like hurricanes and floods. This visibility provides a way to analyze damage and process claims for large buildings and properties safely and more efficiently than ever before. Technology now allows insurance agencies to track not just policy dates but also demographical and psychographic information about their customers to uncover potential areas at risk. 


The Future Jobs In Insurance 

The impact of technology is also being felt in the operations of insurance companies and the types of jobs available in the industry. Big data is hot in the insurance industry as in any other, as companies try to analyze the mountains of information generated and apply that to risk analysis. 

The introduction of AI applications also allows the use of data to access business opportunities while giving clients quality service. In order to interpret the data, companies must have an analytics team or individual who can help determine where those opportunities exist and how best to use the data collected. Data analysis will be key for many insurance companies in the nearest future. 

Conclusion 

Technology innovations will play a major role in determining success or failure in the insurance industry. Firms that effectively harness technologies and the opportunities they offer are destined to be among the industry winners, leading the way toward growth and prosperity. Companies that fail to keep up with the latest technologies that arrive on the scene risk falling further behind and relinquishing their leadership positions. Make no mistake, the insurance industry is at a pivot point as future success is likely to rest on today's technology decisions and strategies.
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