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Technology adds many benefits to our daily lives including convenience, communication, and productivity. Technology makes both life and work easier, but it also poses some risks. Most notably, businesses utilize technology to its fullest capacity, which in turn leads to automation replacing human jobs. If artificial intelligence can improve productivity while decreasing operating costs, then most businesses welcome its use over that of a human. What about insurance jobs? On the surface, insurance jobs seem technical in nature, however, many remain at risk of automation. This article explores the use of technology in insurance in an effort to determine its benefits, limits and the jobs most at risk of automation.
Technology has led to significant improvements in streamlining the claim management process. Managing claims, such as those handled by property adjusters, often involve long manual processes. Adjusters use a significant amount of time gathering information. Tools such as digital measuring devices, photography drones, google maps and others provide property adjusters with tools that minimize the amount of time necessary for an adjuster at a claim site. This means that an adjuster can communicate and adjust a significant portion of a claim from his or her computer without sacrificing the quality of the claims experience.
New technologies, like blockchain, are further revolutionizing the industry. Blockchain is a distributed database existing on multiple computers at the same time. This database is constantly growing as new sets of data, or ‘blocks’, join the chain-like Legos. Each block contains a timestamp and a link to the previous block, such that they form a chain. Among other benefits, blockchain technology allows further streamlining of the claims process. Insurtech is a broad term that references the disruptions in the insurance industry. At first, many businesses implemented this technology behind the scenes as a part of their support operations. Now, however, new startups use this technology to simplify the insurance buying process.
Technology allows for significant improvements in the operations of property and casualty insurance markets. The use of blockchain, artificial intelligence, and insurtech lead to advances, however, there are side effects to replacing jobs previously held by humans with insurtech automation. Below are a few examples of insurance jobs at risk.
While technology leads to operational improvements, it cannot achieve every action necessary in the industry. Therefore, some insurance jobs have a low risk of replacement from technology. Property adjusters, for example, must express empathy in communication with claimants. Technology is unable to express emotion the same way that humans can. Effective claim management requires that property adjuster understand emotions and provide a proper response to connect with claimants and improve claim satisfaction.
Reducing stress is key when dealing with homeowners immediately following a loss. This is evident in recent advertising from several insurers attempting to differentiate themselves from new Insurtech companies. Technology cannot replace the human touch necessary in the role of a property adjuster. While technology will replace some adjusters, others will become more productive, and those capable of establishing and maintaining relationships with clients are more likely to survive in the long-term. Some other insurance jobs depend very much on judgment, such as risk managers. Businesses have varying risk appetites and risk managers must work with senior leaders to determine an appropriate insurance portfolio and limits. Technology also requires insurance company employees to have insurance industry knowledge and an understanding of evolving technology. In short, technology leads to changes in the job descriptions and expectations of insurance employees. When workers learn and evolve as the industry changes, the risk of technology replacing their jobs decreases significantly. Below is a list of risks and limitations associated with technology.
Technology continues to be a massive disruption in the insurance job market, but human connection matters in this industry. Human decisions, judgments, and emotions remain critical components involved in connecting insurers and customers. Businesses must be aware of the risks associated with technology to appropriately adapt and use it effectively in their organizations. Business leaders must also train and equip employees to evolve their skill sets as technology changes persist in the workplace.
Filed Under: Insurance Claims | Tagged With: Artificial Intelligence, Automation, Blockchain, Insurance Jobs, InsurTech