Insurance in the 21st century

By now, we were expecting to have flying cars, hoverboards and self-tying running shoes—at least according to Back to the Future Part II.

Instead, we’re entering an era of autonomous cars, smart fridges and a computer that can predict just about anything.

Here’s a look at how some of the latest technological developments may impact the world of insurance.

Blockchain

Simply stated, blockchain is a massive decentralized database that can be used for almost any kind of data exchange. For the insurance industry, the ability to exchange data in real time could drastically reduce costs and enable revenue growth. French insurer AXA is already using blockchain to automate claims payments for flight delay insurance policies.

Quantum computing

A quantum computer is capable of developing a near-infinite number of scenarios related to various risks— something that would have obvious benefits for insurers and brokers alike. Experiments are currently being carried out with the hope of developing quantum computers for business, trade, environmental and national security applications.

Artificial intelligence

Insurance companies have been investing heavily in artificial intelligence (AI) to reduce claims processing times and better position themselves to analyze risks. Kanetix.ca is using AI to help close sales on its website. And now brokerages are using AI to automate repetitive tasks, allowing brokers to spend more time interacting with clients.

Sources: weforum.org, 21centtech.com, PwC, Financial Times

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Copyright © 2018 Transcontinental Media G.P. This article first appeared in the April edition of Canadian Insurance Top Broker magazine

This story was originally published by Canadian Insurance Top Broker.