Library: Duck Creek – Eleven insurance company technology trends transforming the industry in 2021

Executive summary :

Advanced insurance technology is already an integral part of the property & casualty industry, for both carriers and insureds. Getting insurance quotes can be as easy as clicking a button, managing coverage can typically be accomplished via a mobile app, and paper insurance cards are mostly a thing of the past.

Predictive analytics have a major role to play in insurance

Insurance technology is poised to mature even more in 2021.

Build it and they will come, but build it once…

Digital insurance offerings and a defined omnichannel approach to customer service is driving the pace of change in the P&C insurance industry. What’s more, insurance companies of all shapes and sizes are searching for evergreen solutions — technology that can scale and update with changing demands and capabilities — to help them stay ahead of competitors.

While some of these tools are already employed by some carriers, we see them becoming more and more commonplace throughout the industry. Insurers looking for a competitive edge should consider embracing one or more of these 11 emerging insurance tech trends.

Predictive Analytics

Predictive analytics is used by many insurers to collect a variety of data to help them understand and predict customer behaviour. However, there are new ways it can be utilised to improve accuracy of data.

In 2021, insurance companies can use predictive analytics for:

• Pricing and risk selection
• Identifying customers at risk of cancellation
• Identifying risk of fraud
• Triaging claims
• Identifying outlier claims
• Anticipating trends

Adopting predictive modelling tactics has also proved to increase revenues and accuracy for many P&C insurers. A 2018 study from Valen Analytics found that companies that used analytics and predictive modelling saw their loss ratios improve 3% – 9% more than companies that didn’t. They also reported that insurers using predictive analytics grew their direct written premiums by 53%, compared to the market average of 18% growth during the same time period.

This paper highlights a further 10 trends.

See the full report for more…

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