Like many other sectors, the insurance world is continuously shaped and influenced by emerging technological trends. Gartner, a leading research and advisory company, recently released its top 10 strategic technology trends for 2024.
From AI trust, risk, and security management to continuous threat exposure management, these trends hold significant implications for the insurance industry. This post will explore how these key trends could impact insurers and consumers in the coming years.
AI TRUST, RISK & SECURITY MANAGEMENT (AI TRiSM)
Gartner identifies AI TRiSM as a pivotal trend in 2024. It refers to the trustworthiness, risk management, and security aspects associated with AI technologies. For the insurance industry, this trend underscores the importance of building and maintaining trust in AI systems by ensuring they are secure, transparent, and reliable. It also necessitates robust risk management strategies to navigate potential pitfalls associated with AI applications.
CONTINUOUS THREAT EXPOSURE MANAGEMENT (CTEM)
The rise in digital platforms and data-driven processes in the insurance industry has made cybersecurity a top priority. Gartner's trend of Continuous Threat Exposure Management (CTEM) emphasizes the need for continuous monitoring and management of cyber threats.
In an industry where sensitive customer data is regularly processed, implementing CTEM can help insurers detect and respond to cybersecurity threats promptly, minimizing potential damages.
AUGMENTED-CONNECTED WORKFORCE (ACWF)
The Augmented-Connected Workforce (ACWF) concept has emerged as a transformative trend in business operations. This approach focuses on leveraging intelligent applications and workforce analytics to enhance the productivity and efficiency of human workers and their overall experience, well-being, and skill development. It's about integrating technology with human potential to create a symbiotic relationship where both can thrive.
In an ACWF model, AI-powered tools could be used to automate routine tasks, allowing employees to focus on more strategic, creative aspects of their work. Workforce analytics could provide insights into employee performance, engagement levels, and learning needs, enabling personalized support and development opportunities.
DEMOCRATIZED GENERATIVE AI
Democratized generative AI, another trend highlighted by Gartner, involves the widespread accessibility and use of AI technologies. In the context of insurance, this could mean more personalized and efficient services for consumers. Insurers can leverage generative AI to create customized insurance products based on individual risk profiles.
AI-AUGMENTED DEVELOPMENT
AI-augmented development refers to the integration of AI capabilities into software development processes. For insurers, this could create more sophisticated digital tools and platforms, enhancing customer experience and operational efficiency.
INTELLIGENT APPLICATIONS
Intelligent applications are software applications that leverage artificial intelligence (AI) and machine learning algorithms to make decisions or carry out tasks that traditionally require human intelligence. These applications can analyze vast amounts of data, learn from this data, and make predictions or take actions based on their learning.
Intelligent applications have the potential to transform various industries, including insurance, by automating routine tasks, enhancing decision-making processes, and providing personalized experiences. For instance, in the insurance industry, intelligent applications can be used to streamline claims processing, accurately assess risks, detect fraudulent activities, and provide customized insurance products to customers.
As we move further into 2024, we can expect intelligent applications to play an increasingly essential role in shaping business strategies and consumer experiences.
MACHINE CUSTOMERS
Machine customers, or "custobots" as coined by Gartner, represent a new breed of consumers in the increasingly digital and interconnected world. These non-human entities, such as AI systems or IoT devices, can autonomously negotiate, purchase, and even pay for goods and services.
By 2028, Gartner predicts there will be 15 billion connected devices with the potential to act as customers, and this number is only set to grow.
SUSTAINABLE TECHNOLOGY
Sustainable technology aims to balance technological advancement with sustainability goals, ensuring that our pursuit of innovation does not compromise our natural resources or societal well-being. Companies are now focusing on developing and implementing sustainable IT strategies, selecting the right tools, hardware, and vendors to maximize output while minimizing resource use.
As we move further into 2024, sustainable technologies like CO2 absorption, wastewater treatment, and sustainable shelter are anticipated to play a significant role in shaping a more sustainable future.
PLATFORM ENGINEERING
Platform engineering represents a paradigm shift in how organizations approach software development and operations. It involves the creation and management of self-service internal development platforms; each layered with functionalities developed and maintained by a dedicated product team.
This approach streamlines the process of developing, testing, and deploying software and fosters a more collaborative and efficient work environment. Platform engineering teams provide the necessary tools and infrastructure to enable other teams to deliver high-quality products and services.
By automating repetitive tasks and standardizing development processes, platform engineering can significantly enhance productivity, reduce errors, and accelerate organizational innovation.
INDUSTRY CLOUD PLATFORM
Industry Cloud Platform offers composable capabilities that enable organizations to select, combine, and reconfigure various services to achieve specific business outcomes. From healthcare to finance, retail to manufacturing, industry cloud platforms provide sector-specific solutions that consider each industry's regulatory environment, customer demands, and operational complexities.
By delivering more targeted and relevant solutions, industry cloud platforms can drive efficiency, enhance customer experience, and lead to more informed decision-making.
As we move further into 2024, these technology trends identified by Gartner will play a critical role in shaping the insurance industry. For insurance businesses, understanding and leveraging these trends will be key to staying competitive and driving innovation. These trends could lead to more personalized, efficient, and secure consumer insurance services.
The future of insurance is here, and it’s intertwined with the future of technology. Both insurers and consumers would benefit from staying informed and ready to adapt to these evolving trends.
Want to help your customers get the best insurance options? Get in touch with SimplyIOA today.
