The Future of Insurance: How to Prepare for the Technological Shift in this Industry

The Future of Insurance: How to Prepare for the Technological Shift in this Industry

Rapid technological advancements in the coming decade will result in disruptive developments in the insurance business. Carriers that employ new technology to build novel solutions, harness cognitive learning insights from new data sources, streamline processes and cut costs, and meet customer expectations for individualization and dynamic adaptation will be the victors in tech-based insurance. 

 

While most organizations did not likely invest extensively in disruptive technologies during the pandemic, the increasing emphasis on digital technology and a stronger openness to embracing change will place them in a better position to integrate tech into their operations. 

How insurers can prepare for accelerating changes:

The industry’s rapid transformation will be powered by the widespread use and integration of automation, deep learning, and external data ecosystems. While no one can foresee what insurance will look like in the future, carriers may start preparing for the change now. 

1) Learn about AI-related technologies and developments.

Although the industry’s seismic shifts will be technological, resolving them is not the responsibility of the IT team. Instead, board members and customer-experience teams should devote time and resources to developing a thorough grasp of these AI-related technologies. 

 

Insurers, for example, are unlikely to gain much information from small-scale IoT pilot projects in separate segments of the organization. Instead, they must move with intent and a clear knowledge of how their company can engage in the IoT ecosystem at scale. 

2) Create the necessary talent and technological infrastructure.

The next generation of successful frontline insurance workers will be in high demand, and they will need to be a unique blend of technologically adept, creative, and willing to work at something that will not be a static process, but rather a mix of semi-automated and machine-supported tasks that will constantly evolve. 

To keep up, an aggressive plan for attracting, cultivating, and retaining a diverse workforce with vital skill sets will be required. Data engineers, data scientists, technologists, cloud computing professionals, and experienced designers will be needed among those employed. 

3) Create and begin implementing a well-thought-out strategic plan.

Carriers must select how to employ technology to support their business plan based on the insights gained from AI explorations. Some carriers are already experimenting with novel techniques, such as establishing their venture capital arms, purchasing potential insurtech startups, and forming alliances with top academic institutions. 

Insurers should create a perspective on the areas in which they want to invest to match or beat the market, as well as which strategic approach—for example, founding a new business or building in-house strategic capabilities—is best suited for their organization.

4) Develop and implement a thorough data strategy.

Data is quickly becoming one of, if not the, most significant assets for any firm. The insurance sector is no exception: how carriers identify, assess, place, and manage risk is all dependent on the volume and quality of data they collect throughout the life cycle of a policy. 

Carriers should be prepared to implement a comprehensive procurement approach that may include direct acquisition of data assets and providers, licensing of data sources, usage of data APIs, and collaboration with data brokers. 

How can TraQiQ help?

At TraQiQ, we are well-versed with emerging technologies like AI, Analytics, Machine Learning, and Blockchain. Based on client needs and requirements for various domains, we can assist you in selecting the best option for your company and advancing it to the next level of its digital transformation ladder. For more information regarding our services please contact us.

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The Growth of Digital Payments

The Growth of Digital Payments

There is considerable history in the world of payments. As we go back thousands of years, we started with ecommerce/trade systems without monetary payments. It took considerable time to move from barter to livestock, precious coins, skins/leather and eventually paper money. However, there has been considerable progress in the last couple hundred years. The progression from paper money to checks to credit cards and now Digital currency (and payments). 

As we explore the world of digital payments, the revolution started in the mid-nineties with ecommerce and online shopping. It has continued to grow rapidly over the last 25 years. What started as simple payments with credit cards has now transformed into a broad segment of mobile payments. A simple tap or wave with a phone buys groceries or pays for a round of golf. How does one even define the broad world of digital payments? 

Digital payments convert a traditional cash transaction to a cashless one. The business world aggressively moved in that direction with ACH payments, wire transfers and EDI based solutions. As we look at the consumer world 25% of the global population does not have access to the traditional banking systems (with a high percentage of women). This is the segment that is ready for migration to the world of Digital payments – safe, reliable, transparent, and convenient. While these transactions tend to save money due to system efficiencies, the bigger benefit is that it leaves a digital trail, thereby protecting people’s financial interests. 

As with most industries, technology is changing the game. Countries are considering the introduction of digital cash, where digital legal tenders are transferred directly from payer to payee in a payment transaction. This is a scenario where paper and metallic currency will become obsolete. While this transition is likely to take some time, we are heading there. Many consumers in the developed markets did not use any cash during the many weeks of Covid19. McKinsey tells us that e-commerce transactions grew 81% in Italy during that period. Technology is also enabling regulators to bypass banks. We see companies like Paypal/Venmo, Square, and Stripe drive payments and transactions across the consumer and business eco-systems. If the user chooses to leave money in those accounts (aka wallets), it does not need to go to a bank account. 

We do live in interesting times. The growth of digital commerce coupled with mobile usage are driving deep change in the global payment’s infrastructure. Consumers and businesses are facing and driving this change. They are demanding innovation and the technology industry is delivering. There are significant social issues that need to be addressed – we need to be inclusive. However, there is every indication that technology will continue to enable the developing markets and underserved demographics will continue to benefit and join the connected world. 

TraQiQ offers a mobile wallet, payment gateway, and commerce solutions. These solutions have been deployed around the world and help large corporations serve their customers. These solutions also enable the unbanked consumers to participate in digital commerce with just a phone. 

The Value of Gig Economy Independent Professionals for Your Company

The Value of Gig Economy Independent Professionals for Your Company

What is a gig? A term that originated in the music business now represents a form of employment that has been impacting scored of business (and employment) models around the world. We have all used contractors in some form. We have hired people for a couple days to make a modification to our house, and we may have hired someone to build a website or write some software. These “contractor” type of employment models has been around for a long time – some last for hours, and some for months. 

Let's look at 2 very specific scenarios where this flexibility is powerful.

One example comes from the Technology universe. Amazon’s EC2 elastic computer service lets their customers rapidly add/reduce capacity depending on their needs. No need to buy servers, etc. Press a button and you have a few hundred more boxes (or equivalent) instantly! 

The second example comes from the people universe. When millions of people hit Las Vegas at an event Like CES, thousands of Uber and Lyft drivers supplement the conventional taxi service. 

Companies like Uber have become the poster child for this, even though Taxi services have existed for a long time. The same thing applies to office space – WeWork made some economic and management mistakes, however, their impact on how we evaluate and manage office space is very long term. 

The gig economy is a very broad representation of the flexibility that we seek. It is currently represented via temporary, or freelance jobs, often involving connecting with clients or customers through an online platform or mobile app. These assignments are typically very short term or adaptable and fulfil a very targeted need. The Uber business model started as short gigs and now a large part of their workforce works full-time. Compensation continues to focus on payment for every ride/task completed. 

Another great example is Mimo-Technologies in India. The company has built a network of over 10,000 task workers across semi-urban and rural India. Their “agents” deliver documents, small packages and also collect payments. In addition to being very successful commercially, the company is also serving a very significant social need – they provide employment to thousands of people who may have a high school education (at best) and provide a significant boost to the local economy. 

The gig economy can benefit workers, businesses, and consumers by making work more adaptable to the needs of the moment and demand for flexible lifestyles. There’s no denying the growth of the gig economy. Economists estimate that the portion of U.S. workers earning a living as independent contractors, freelancers, temps, and on-call employees jumped from 10% in 2005 to nearly 16% in 2015, and the trend shows little sign of slowing. It is estimated that by 2027, 60% of the workforce will be independent professionals. 

TraQiQ offers a software platform that can power the distribution engine for the new economy. It brings together the software needed for Last mile delivery, agent management, customer analytics, payment mechanisms and geo-tracking. It is a platform tested by multiple customers, thousands of agents and has had billions of dollars of transactions flow through it. 

Customer Focus

Customer Focus

The rules of business are being rewritten nearly every day with this imperative for business digital transformation. Every business leader must apply these rules to engage, compete, and grow. Every industry has a unique digital transformation opportunity. 

Improving customers’ experiences needs to be the cornerstone of any investment in new technologies or business processes. It’s important to get beyond digital transformation as purely a technical, abstract construct and see it as a must-have strategy to retain customers and attract new ones. 

Every company needs to build platforms and partnership to accelerate and scale this transformation. This brings into focus the ability to innovate at the intersection of experiences and operations. Better data leads to better customer results. 

AI is helping to more precisely define customers’ preferences and needs. Organizations that are the most successful with digital transformation initiatives can see improvements in customer loyalty rates and customer satisfaction. AI-based algorithms are making it possible to create models that are invaluable for predicting which customers will act on a bundling or pricing offer. These models rely on predictive analytics including machine learning to predict the probability a given customer will act on a bundling or pricing offer, e-mail campaign or other call-to-action leading to a purchase, upsell or cross-sell. 

Capitalizing on insights gained from AI, organizations are redesigning their technology infrastructure and process to improve customer experiences. This infrastructure needs to scale rapidly, change rapidly and integrate with the cloud-based infrastructure of the entire supply chain. 

TraQiQ can help in designing, building, and running cloud-based technology platforms and AI models that help our customers and partners bring their offerings to market rapidly.