Technology in the Insurance Industry

Technology in the insurance industry is changing at breakneck speeds. This shift is affecting insurance agencies from all sides. Every aspect of daily life is now influenced by technology. Insurance companies are not exempt from this fast-paced transition. The basic inner workings of the insurance industry are morphing into entities unimaginable 30 years ago. These new horizons stretch from how insurance companies operate at the most basic level, to how agencies market and implement policies for consumers. Springtree Group takes pride in being on top of all technology trends in the industry so that we can best assist our clients.

Cell phone technology presents a cacophony of options for agencies. Any agency not utilizing the capability for instant access and transaction with consumers risks their bottom line. In a world where you can use a small hand-held device to shop for, order and pay for almost any tangible item and have it delivered to your residence mere hours later, agencies can no longer rely on foot traffic and word of mouth to build their book of business.

The use of smart phones has also caused a spike in both the number and severity of auto accidents. Because of this, insurance rates have had to rise to meet the increase in claims. The good news is that technology will likely eliminate distracted driving due to the imminent arrival of self-driving vehicles. Self-driving cars should become a reality within the next decade.

While smart phones and devices are incredibly convenient, they affect the insurance industry on more levels than just sales. End-use consumers are using their devices to decide on companies, policies and coverage. Many insurance agencies have an “app” that allows for everything from paying premiums to reporting accidents before you even leave the scene; including easy submission of photographs and an image of the police report.

Even if you preclude smart phones, other modes of emerging technology are primed to revolutionize daily life. Artificial Intelligence (A.I.), smart watches and other wearable technology, biometrics and robotics are just a few of the exciting things to look forward to within the next decade. Within those 10 years, these new possibilities will shape the role of insurance and how it operates.

A.I. could eventually assist or replace underwriters, customer service and sales staff – perhaps reducing the overall number of employees required by the average insurance company. E-currency, such as Bitcoin, could become acceptable tender. Biometrics has already helped in the area of identity theft and could be used in the future to qualify and verify life insurance. Technology’s possibilities are endless and it’s very likely that those possibilities will lead to some substantial changes in the insurance industry. Working with Springtree Group for your agency lending and acquisition needs will give you a running start on the technology within the industry – we always stay a step ahead so that our clients get the best start in the insurance industry.