According to the report, insurance companies must leverage advanced technology, such as generative AI, IoT, and blockchain, to better understand their customers and anticipate their needs.

TORONTO, Sept. 11, 2023 /PRNewswire/ – As the insurance industry faces escalating competition and rising customer expectations for intricate and hyperpersonalized solutions, many insurers are looking to improve efficiency while minimizing costs. To help insurance organizations address these challenges, Info-Tech Research Group has published a new industry trends report, The Future of Insurance. The report explores the transformative potential of technologies like blockchain, artificial intelligence (AI), machine learning, and the Internet of Things (IoT), offering critical insights for insurance professionals seeking to navigate the rapidly evolving landscape.

"In today's insurance industry, the adage 'the customer is always right' has never been more true," says Ahmed Mapara, principal research director at Info-Tech Research Group. "Customer competition is increasing among incumbents, as is competition from new digital startups and nonfinancial market entrants with deep technology capabilities, extensive data sets, and existing customer relationships. As a result, insurance carriers are increasingly under pressure to improve and simplify customer experiences across all channels, including in-branch, online, mobile, and sales centers."

Info-Tech's latest report emphasizes the need for insurance sector CIOs to understand the growing needs of the business in an era of digital transformation. The report highlights four trends that insurers should consider to drive the future of insurance:

1. Drive Customer Satisfaction to Remain Competitive: Insurers can use data analytics to better understand the needs and wants of customers and develop hyperpersonalized products to stay competitive and create the next generation of impactful customer experiences.
2. Reduce Cost and Risk Through Advanced Modeling Using AI & ML: Insurance firms can increase operational efficiency by making accurate predictions and enhancing automation of repetitive tasks to create fast and seamless claims and payments processing, fraud protection, and customer experiences.
3. Implement the Internet of Things (IoT) to Capture Data: By leveraging IoT and using data in real-time, firms can personalize products and services based on their clients' profiles.
4. Implement Blockchain for Storing Customer Information: Insurance firms can use blockchain to facilitate real-time data sharing, reduce the need for intermediaries, and mitigate risk, creating a decentralized database to handle insurance risks more efficiently.

The firm explains in the report that to remain competitive, insurance companies must prioritize aligning IT initiatives with business innovation and leverage advanced technologies to uncover new opportunities. Equally important is the role of new skilled professionals such as data scientists, user experience experts, and process designers in transforming insurance products and services. Strategies focused on talent acquisition, upskilling, cross-training, and retention are also crucial to ensure success in this transition. The future of insurance will be shaped by a careful balance of technological advancement and human resource innovation.

"To meet demand, insurance companies must identify new areas of customer need and develop appealing products and services," explains Mapara. "As a result, insurance's speed and complexity and technology's impact are rapidly increasing."

Info-Tech advises the importance of insurance industry leaders acknowledging innovation is an ongoing, continuous process. In an era where innovation is no longer just a strategic edge but a fundamental requirement, embracing and fostering a culture of constant innovation is likely to yield lasting growth and success.

Download the complete The Future of Insurance trends report to gain more insights on how the insurance sector can empower customer satisfaction, leverage AI, integrate IoT, and implement blockchain to pave the way for a revolutionary shift in the industry.

For media inquiries on the topic or to get exclusive, timely commentary from Ahmed Mapara, a financial services sector expert, please contact pr@infotech.com.

Info-Tech Research Group is one of the world's leading information technology research and advisory firms, proudly serving over 30,000 professionals. The company produces unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. For 25 years, Info-Tech has partnered closely with IT teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.

Media professionals can register for unrestricted access to research across IT, HR, and software and over 200 IT and industry analysts through the firm's Media Insiders program. To gain access, contact pr@infotech.com.

For more information about Info-Tech Research Group or to access the latest research, visit infotech.com and connect via LinkedIn and Twitter.

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SOURCE Info-Tech Research Group