Covertech outlines emerging tech trends in the Australian insurance broking industry

Insurtech Covertech Australia has identified key trends that are poised to reshape the insurance broking industry in Australia.

In a LinkedIn post, Covertech explained that technology-driven trends are not only streamlining operations but also opening new avenues for customer engagement and service delivery within the insurance broking industry.

Emerging trends

According to Covertech, the emerging trends in the Australian insurance broking industry this year are:

• Immersive internet: Brokers are exploring the application of augmented reality and virtual reality for virtual property inspections and risk assessments to enhance the accuracy of assessments and increase customer engagement
• AI and machine learning: The incorporation of AI-driven chatbots is gaining traction, with the potential to handle customer inquiries and provide policy recommendations. This move is expected to improve overall efficiency and enhance client service
• Multi-cloud adoption: The embrace of cloud-based management systems is becoming prevalent, offering scalable data storage solutions and bolstering cybersecurity measures
• Flexible workforce: Remote technologies are being leveraged to attract a diverse talent pool and increase overall productivity within the insurance broking sector
• Decentralised systems: The integration of blockchain technology is on the rise, ensuring secure and transparent management of client data while contributing to fraud prevention
• Mainframe modernisation: Legacy systems are being updated with modern solutions like cloud computing to improve data processing capabilities and enhance customer interaction
• AI in claims and underwriting: The implementation of AI for automated claim processing and risk assessment is gaining momentum, leading to faster and more accurate decision-making
• Automation: According to a McKinsey report on technology trends in insurance, advancements in applied AI, distributed infrastructure, connectivity, automation, and trust architecture are reshaping the industry. These changes are particularly crucial in streamlining underwriting, claims processing, and customer engagement, resulting in more efficient and precise insurance operations

In other news, insurtech leaders recently described what they look for when considering how they work with and select insurers and other partners.