As we enter a new era of innovation following the disruptions caused by the COVID-19 pandemic, insurers must proactively identify their technology priorities. Accenture’s 2022 Technology Vision report highlights the expansion of the digital world and the convergence of physical and virtual realities. Among the emerging trends, the concept of the Programmable World holds great relevance for insurance carriers. This article explores the opportunities and implications of the Programmable World for insurers.
Expanding IoT and Edge Devices: The report reveals that 74% of global executives have experienced a significant increase in the deployment of Internet of Things (IoT) and edge devices within their organizations over the past three years. This data underscores the need for insurers to understand how their products and customer interactions can thrive in an increasingly digitalized reality.
Functionality over Novelty: To gain a competitive edge, insurance leaders should prioritize functionality over novelty. In a truly programmable world, insurers must leverage robust technology to drive efficiency, engagement, and cost reduction. Rather than focusing solely on developing new offerings to keep up with technology trends, insurers should concentrate on designing or adapting products and processes that deliver the highest value to customers in a programmable world.
Impacted Use Cases: Customer Interactions and Embedded Commercial Insurance: Two specific use cases within the insurance industry will witness substantial impacts from the innovation toward a programmable world: customer interactions and embedded commercial insurance.
- Customer Interactions: Augmented reality (AR) and programmable materials have the potential to revolutionize how insurers engage with their customers. AR can enhance customer experiences by providing real-time information, personalized recommendations, and virtual assistance. Programmable materials, such as smart devices or wearables, enable insurers to gather valuable data, assess risks more accurately, and offer tailored products and services based on individual needs.
- Embedded Commercial Insurance: The integration of programmable technologies in commercial settings presents opportunities for insurers to embed insurance seamlessly within business processes. As programmable materials and IoT devices become prevalent in commercial environments, insurers can offer tailored coverage, risk mitigation solutions, and real-time monitoring. This level of integration allows insurers to proactively manage risks, improve underwriting accuracy, and create more efficient claims processes.
Conclusion: As the world becomes increasingly programmable, insurance carriers must adapt and seize the opportunities presented by this digital transformation. By prioritizing functionality, leveraging emerging technologies, and focusing on customer interactions and embedded commercial insurance, insurers can stay ahead in a programmable world. Embracing the potential of AR, programmable materials, and IoT devices enables insurers to enhance customer experiences, tailor products and services, and proactively manage risks. The programmable world offers insurers a chance to redefine their value propositions and create innovative solutions that align with the evolving needs of customers in this digital era.