How careers in the insurance industry are changing
We’re in an age of technological advancements, but what does it mean for the future of insurance? In order to move forward, the insurance industry is changing to fit the new world. Centennial’s Insurance Management program looks at the modern insurance industry and how to work with the changes that the future will bring. The program offers a way for Human Resources, Financial Services, and Community and Health Studies graduates to get a career in this growing sector. Here are a few of the changes people getting a career in insurance can expect to work within the years to come:
New technology brings new risks, like cybercrime and cybersecurity. There have been many big cases of stolen data over the last few years, with more to come as we move to the age of digitization. The key is to have more stringent controls to respond to cybercrime and stolen data as well as cyber resilience. While cyber insurance may be a challenge, it is also a new opportunity. Cyber insurance may also grow to cover cars as they become more automated. Speaking of that…
There are growing concerns over accidents involving driverless cars. Despite these concerns, the array of radar and cameras used by these cars makes them better at sensing trouble and taking preventative actions. According to the Harvard business review, by 2035, 23 million fully autonomous vehicles will be on U.S. highways, and insurers will have to quote a new type of risk. They will also need to charge more because they do not have enough data to analyze the risk effectively. Since there will be fewer individual owners, there will be lower premiums, leading to a $25 billion loss for insurers by 2035. There has already been a decline in individual auto insurance due to urbanization, ride-sharing and a lack of interest in owning cars. Because of this, insurers will have to look at other types of insurance, including cybersecurity to cover costs.
AI replacing brokers
Within the next decade, there is sure to be a lot of changes when it comes to artificial intelligence. As data and AI advancements rapidly change the industry, companies can now do more for their customers at lower costs and speedier response time. Some companies have started utilizing AI and have their own AI chatbot that can create personalized policies with a flat fee and no paperwork. It can also review claims and run them through anti-fraud algorithms. According to Genpact, 87 percent of insurers are investing in AI each year with over half planning to move over their business processes in the next three years. Insurers are leveraging AI by making smarter underwriting decisions, better managing risk practices, detecting fraud while maintaining positive customer experiences and feedback. AI significantly reduces the layers of bureaucracy required for traditional insurance and is able to do a risk assessment on a whole other level.
The way insurance works will have to change thanks to the rise of the sharing economy, as asset-free millennials need a new kind of service that fits their needs. For example, another change we can expect in the future is personalized “pay-as-you-live” policies. This can include flexible, on-demand insurance for gadgets that can be switched on and off as easily as Wi-Fi. This can also apply to borrowing a friend’s car for a few hours. You do not pay for an annual policy, but you can be covered while borrowing the car.
Written by: Savanah Salazaar