Innovations among Domestic Financial Institutions to increase insurance penetration in Asia

The integration of new technologies is what paves the way for transformation in the financial sector. And these inventions have resulted in immeasurable efficiency gains over the years. Considering financial services deal in intangible products, technological innovations expedite the delivery of various services and lower transaction costs. The recent propagation of internet connection, mobile devices, home computing, and application development has resulted in a lower market entry barrier. This resulted in greater competition in or disruption of the financial sector.

The insurance industry is not an exclusion to this, with developments in technology resulting in possibilities of new service methods and better opportunities. Here we will discuss top innovations that will insurance penetration in Asia.

1. Digitizing The Records Using Optical Character Recognition

On a daily basis, insurance providers collect and process a lot of files in terms of paper archives. However, this is not the right way to store, process, and share information. Additionally, it is also not an environmentally responsible method.

When the files are analyzed and stored in a cloud digitally, documents can be reviewed automatically. Additionally, they can be eliminated in case of errors or inconsistent information, providing insurance staff with accurate and consistent information.

If the industry leverages optical character recognition algorithms, the technology will be able to provide insightful stories regarding customers. And online document management in the industry is becoming more common. But there continue to be agents that still deal with various manual documents.

2. Automating The Claiming Process With Artificial Intelligence

How long does it take for the insurance company to process a claim? The answer to this question depends on the nature and complexity of the claim. But most often, insurance providers spend a significant amount of time in claim processing, which can be streamlined by automation technology.

By integrating Artificial Intelligence, insurance companies across Asia can cut costs. Machine algorithms are capable of calculating the detriments of various claims. It will eliminate human intervention and reduce cost and time significantly.

3. Personalized Insurance Pricing With Social Media and IoT

The conventional way of risk assessment involves impersonalized datasets. However, today, social media and endpoint tools can offer a massive amount of personal data. It can help insurers and consumers. Insurance providers can execute more precise risk assessments, get stable margins, and keep clients satisfied.

And consumers will get better coverage and personalized services. Moreover, connected devices and wearables offer deep insight into the physical conditions of customers like pulse, temperature, blood pressure, etc.

4. Efficient Car Risk Management WithTelematics Insurance

Telematics insurance is a collection of car insurance products that is directly installed in vehicles. The device comes with motion sensors, a GPS system, analytic software, and a SIM card. Moreover, a telematics box monitors location, time, speed, driving distances, and crash accidents, among other driving data.

The system transmits the gathered information to the insurance company for analysis. Thereafter the analytics are added to the personal account of the customers. By keeping track of the driving behaviours of the insurer, it can create a personalized insurance plan and strengthen risk management.

5. Blockchain Reinsurance Disrupting the Insurance Sector

Implementation of blockchain brings around $5-$10 billion cost-saving opportunity for reinsurers. The nature of reinsurance is similar to the chain structure. It is recognized as the second-largest distributed ledger use case in fintech post payments.

The main benefits for stakeholders are the reduction of authentication as well as validation time, minimization of reputational risks, and elimination of errors.

By implementing blockchain, a reinsurer will not have to communicate with the insurer to obtain data offered by clients. For example, you need to authenticate various insured events for a health risk reinsurance contract. If parties are tied together by a smart contract, it will allow the reinsurer to get access to the insurant's health data easily.

Conclusion

These were some of the prominent innovations that can increase penetration in Asia. These technologies will make the overall operations of the insurance sector more streamlined and efficient. When the insurance agents are juggling arduous manual tasks, they can focus on improving the quality of the products. Subsequently, more people will be interested in taking insurance when they are getting personalized and cost-effective solutions.

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