The role of technology in the insurance sector: driving towards a digital future

28 Sep 2022

There has been a continuous transformation with the emergence of new technologies in the insurance sector, that will allow insurers to improve their operations, redefine their products and services and grow their business. But what will the main technologies involved in this transformation of the insurance sector be? 

Artificial Intelligence, a key technology for the insurance industry

AI is probably one of the most important technologies, which can be applied in all areas of insurance. Life, auto, death, home insurance… All of them can be improved by using algorithms that are correctly adapted to each use case. In addition, AI will moderate different processes, from onboarding to the registration and processing of a claim, so insurance companies will be able to increase productivity and improve the quality of contact with policyholders. 

Increased cybersecurity for an increasingly digital industry

Security is a key factor in a digital future when it comes to technology in the insurance sector. We use a Zero-Trust architecture, preventing data theft to create resilient networks that protect against cyber-attacks, such architectures distrust all inputs by default, establishing the first barrier in the systems of insurance companies. 

Changes in insurers’ technology infrastructure

It is very likely that insurers will start to re-evaluate their architecture choices to adopt more modern solutions that suit their needs. For example, they may want to move towards a microservices architecture, become more data-driven or choose Event-Driven architectures. The choice of one or the other will depend on the agility and speed they need, but in any case, it will be a very important feature, as the rest of the technologies will be built on top of it. 

Automation and Low-Code to accelerate technological development in the insurance sector

On the one hand, No-code and Low-Code solutions will help insurers to adapt quickly to consumers’ needs, as they will make it possible to develop applications in a simple way, both for internal and external use. In addition, automation will optimise and streamline back-office processes, reducing paperwork and speeding up procedures. But not only that, it will also gain more and more customer-facing applications. Therefore, this type of technology will simplify the work of insurers, reduce costs, and improve the customer experience. 

Other technologies, such as IoT, are becoming increasingly widespread thanks to 5G and which will make it possible to launch new products adapted to customer needs, increase proactivity in assisting policyholders or calculate risks more accurately. In this sense, Blockchain will make it possible to manage user data securely, while Digital Identity will simplify the problems of identifying consumers remotely. The important thing will be to have the right strategy to apply the technologies that bring the most value to the insurance sector, creating synergies between them and moving towards an increasingly digital future.