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1. 4 Insurance Technology Trends for 2021
2020 has been the year of disruptions. All businesses were pushed to the precipice of digital
transformation to stay afloat and remain relevant in the new dawn brought about by the
Coronavirus pandemic. The insurance industry, which for large part remained traditional until
then, was also subject to rapid digitalization and digital adoption. Fortunately, the gradual
growth of the insurtech industry was readily present to facilitate this shift. Let us look at the
technologies and tools that have expedited the rapid growth and digitization of the insurance
sector.
Internet of Things (IoT)
The Internet of Things (IoT) unlocked new avenues for deriving information from a variety
of data sources. Through IoT integration, insurance agencies could automate the data
sharing and management processes, which helped them better understand customer
requirements. Additionally, these data insights also helped insurers speculate or decide on
the premiums, insurance rates, instances of fraud, and losses. It can be the stepping stone
for predictive modeling that influences risk assessment and underwriting policies.
Artificial Intelligence (AI)
Artificial Intelligence (AI) has brought about a revolution in the working of the insurance
industry. Several AI-driven tools have been instrumental in boosting profitability while
reducing operational hurdles and costs. AI technologies often point towards efficient
solutions that can streamline operations and simplify the claims settlement process. AI-
powered applications will also lay the foundation for increased efficiency and productivity to
improve customer servicing.
Machine Learning (ML)
Machine Learning (ML) is a distinct discipline of AI that plays a vital role in the claims
processing task with scope for automation. As the files are now digitized and stored over a
centralized data repository, ML can easily analyze the existing data and derive actionable
insights into how to make the best use of customer data. It also follows a fixed path based
on user-defined algorithms, which maintains compliance with regulations and organizational

2. policies. With greater processing power, higher efficiency, and no room for errors, ML can be
a game changer in the insurance industry.
Blockchain Technology (BCT)
Blockchain technology (BCT) relies on a distributed tamper-proof ledger that records
transactions in real-time. It also allows networked users to verify the transactions through
auditing. Through technologies like computational power, immutable agreements, and
cryptography, the technology also maintains robust security. As it distributes authority and
accountability, it injects transparency throughout the system and every party involved in the
process maintains integrity. BCT can digitize and codify the movements, which can play a
critical role in improving the insurance industry. It also carries other benefits like risk or fraud
detection and mitigation, new product and service introduction, cost reduction, back-end
operation organization, and more.
Concluding Thoughts
The advent of insuretech is set to forge new paths of productivity, efficiency, and customer-
centric experience. With innovative tools and applications unlocking greater potential in how
insurance agencies operate, it is only a matter of time until these become an integral part of
the “new normal.”
Customers and end-users can enjoy improved services. Brokers can follow defined roles
and process efficiency. Insurers can streamline operations, boost productivity, and drive
profits. All in all, everyone, from customers to brokers to insurance agencies, will benefit
significantly from the adoption of these technologies.