In today’s digital world, the insurance industry is doing its part to remain agile. That’s because it faces the constant prospect of regulation changes. Customer expectations also change as well. The technology we use today in business is something the insurance industry can use to ensure business resilience in insurance.

We’ll discuss how technology can be useful for insurance businesses. You may be a sales agent or a higher-up for an insurance company – but want to rely on the right tools that will keep you ahead of the game. Whether it’s keeping track of customer claims or adhering to regulation changes, there could be something that will serve a purpose. Let’s dive right in now.

How does technology play a role in managing compliance?

The insurance industry faces the ongoing challenge of compliance. Especially when it comes to following a large number of laws and regulations that pertain to protecting consumers and the market as a whole. However, the use of technological tools and insurance compliance software can make complex things a little easier.

For example, they can rely on a centralized platform that will allow them to easily manage their compliance responsibilities. In turn, they can improve efficiency while minimizing errors and inconsistencies. In addition, such technology can feature real-time monitoring and automated alerts so insurance companies can catch potential problems early. Failure to catch these problems and resolve them can be costly and can lead to legal trouble for insurance companies.

What kind of technological solutions can insurance companies rely on?

While regulatory compliance is addressed via technology, operational risk can also be managed as well. In today’s digital age, data is becoming one of the most important aspects of making critical decisions in business. It should also be protected – even if it’s to comply with various regulations that pertain to the protection and preservation of customer data. Here are some technological solutions that may be useful for insurance companies:

Advanced analytics and predictive modelling

Analytics and predictive modelling are two tools that every business will find useful. For insurers, they can be able to identify and assess certain risks using the data they have on hand. From there, they can make decisions to minimize these risks before they become much bigger problems.

But that’s not the only thing analytics and predictive modelling can be used for. In addition, they can be used for any financial-related data. For example, they can use advanced analytics and predictive modelling for forecasting purposes. Let’s take a look at a car insurer for example.

They can use historical data that can create forecasts regarding the amount of claims that were made during a previous period. For example, the number of claims may be forecasted to be at a higher number during holiday travel periods like Memorial Day, the Fourth of July, Thanksgiving, etc.

Using cloud-based solutions for data preservation and protection

One of the greatest innovative solutions of the digital age is cloud-based solutions. Companies can ensure resilience in insurance by storing customer data in a cloud-based storage space – allowing them to keep it stored there as a permanent base. It can also be used as a backup space where the data can be retrieved and recovered easily in the event of incidents such as cyberattacks, system failure, or other incidents.

Nevertheless, insurance companies are also regulated to protect consumer data information. Customers are providing their most sensitive and personal information. Thus, they want to have it protected at all times against bad cyber actors. Financial data, even online, should also be protected as outlined by the Gramm-Leach-Bliley Act (GLBA).

The regulation calls for insurance companies to explain the information they share to customers while protecting their data. Health insurers must also follow HIPAA to protect health-related data for the customers who have policies through them – including any medical records they have on file.

Final Thoughts

Insurance companies face plenty of challenges and hurdles when it comes to the way they operate. In a heavily regulated industry, they can use technological solutions to navigate through the obstacles and ensure business resilience in insurance.  This includes being able to protect the data of their policyholders while using other data to make projections and keep track of claims and the amount of money being paid out. Everything has to be accurate on the part of the insurers.

And it takes reliable, compliant-friendly tools and software to get the job done. Being able to navigate through the obstacles while maintaining customer trust will be key, but possible for insurance companies.