Global insurance industries are experiencing a massive shift in business, as advanced technologies are beginning to play an increasingly vital role in insurance businesses.
From the growth in popularity of open insurance to the increased prioritization of technologies like AI and cloud computing, the car insurance industry is undergoing a major overhaul of traditional business methods. To remain competitive, insurers must not only embrace new technologies but also find ways to boost innovation and offer stellar customer experiences.
In this article, we will discuss the current transformation that car insurance technology is undergoing, as many insurers work to move away from legacy systems and towards digitally advanced solutions. Keep reading to learn how CPQi can help car insurance companies implement these key technologies.
The Role of Open Insurance in Car Insurance Technology
Open insurance is an initiative to enable insurers to share client information and data with the explicit consent of the clients. As an offshoot of open banking, open insurance aims to increase operational efficiency and speed of service, while still maintaining a high level of customer privacy.
For the car insurance industry, early adopters of open insurance can benefit from several potential advantages, including:
- Improved Omnichannel Experiences: Omnichannel communication and business strategies are becoming increasingly important for car insurance companies, as clients are growing more expectant of highly accessible services. With the support of open insurance APIs, it is far easier for insurance companies to provide their clients with a full range of services through each client’s preferred channels.
- Greater Financial Inclusion: In traditional insurance business models, customers have had very little control over the management of their insurance accounts. With open insurance, car insurance companies can provide customers with more powerful insights and data that allow them to gain a more holistic view of their financial health and insurance status.
- Reduced Operational Costs: The ability to share data between insurance providers is certainly nothing to scoff at. With the support of open insurance, car insurance companies can not only make faster decisions but can also provide more meaningful insights and data reports without having to increase operational spending. In fact, the efficiency that open insurance stands to provide is likely to have a massively positive impact on reducing operational costs overall.
The Increasing Focus on AI & Cloud Computing Amongst Insurers
In terms of which technologies car insurance companies should focus on first, the answer is fairly clear — artificial intelligence and cloud computing should be top priorities.
In Deloitte’s 2022 Insurance Industry Outlook report, artificial intelligence (AI) is one of the top technologies that insurance professionals are focusing on in 2022.
Of the 424 global respondents surveyed, 74% named AI as a technology they expect to see a slight to large increase in spending on, making AI the number one technology that insurers plan on increasing their spending for. Coming in second by a slim margin, 72% of respondents named cloud computing and storage as the next most popular technology for spending focus in 2022.
AI and cloud computing are not only crucial for establishing a strong digital presence but they are also two of the foundational pillars needed to enable open insurance. As such, car insurers must consider how these technologies can be quickly and securely implemented into their business infrastructures.
Aside from boosted operational efficiencies, these technologies are also crucial for building better customer experiences as well. For instance, AI can play a much larger role than operational support. Using AI-powered decisioning models, car insurance providers can offer customers highly targeted and personalized advice that meets their exact and unique needs.
Final Thoughts: Implement Open Insurance Technology with CPQi
At CPQi, we are highly experienced in working with insurance companies all across the Americas. With more than 15 years of experience with high-level implementations and digital transformations, our team has the expertise insurers need to stay ahead.
While regulation surrounding open insurance is still largely under development, car insurance companies should not see this as an excuse to delay their adoption of open insurance technologies. Early adoption, in fact, is what will separate industry leaders from those who will fall behind.
From building highly efficient cloud-computing-based infrastructures to implementing AI-powered administrative architectures, CPQi has the talent and resources needed to plan for the future. With the help of our expert teams, car insurance companies can properly prepare themselves to embrace open insurance while still upholding a high standard of security and privacy for customers.
To get started with CPQi today, contact our team about our custom-made solutions for car insurers.
