For decades, insurance brokers have relied on human-based interactions to navigate customer journeys. COVID-19 accelerated the digitization of medical data, reimbursements, underwriting, case analysis, and more. Throughout 2022, we saw the effects of this transformation as we began navigating a post-pandemic environment. In 2023, the industry must focus on customer journey and data protection.

How did COVID-19 accelerate digitization for the insurance industry?

The shift to remote work had a substantial effect on the traditionally slow insurance industry. What was once the normal routine of meeting customers in person and spending hours on document workflow management, quickly pivoted to phone calls, video chats, and back-office automation. 

According to LexisNexis Risk Solutions’ 2019 Future of Claims Study, 95% of insurance carriers were embracing virtual claims or already considering it before the pandemic hit. 79% of carriers were considering touchless claims handling and one in five consumers preferred self-service claim options already. This proved the market was already looking to digitize, but the process was expedited once they had no other choice.

What were the most influential insurance industry trends of 2022?

There were major trends that influenced the insurance industry in 2022, including automation, consolidation, supply chain disruption, and the rising cost of claims. With the increase of mobile app capabilities, the insurance industry has been enhanced with 24/7 customer service and. more personalized risk profiles. It has also enhanced insurers’ abilities to retain and attract clients while transforming the ease of insurance activities like claims processing, policy management, and underwriting. 

Consolidation swept the insurance industry in 2021 and 2022. Firms that embraced automated processes became attractive to acquisitions and found added motivation in anticipated increases to federal capital gains tax. Supply chain disruption delayed auto and homeowners’ insurance claims while contributing to rising costs.This resulted in the consumer price index (CPI) rising to 8.5% from the previous year, marking the largest increase since 1981, according to the Bureau of Labor Statistics (BLS).

What are the insurance industry trends for 2023?

Insurers are making substantial progress, but work remains to be done. They must continue to invest in delivering a better digital policyholder experience, especially in claims, and support a new workforce model powered by automation and artificial intelligence. By transforming the claims process and prioritizing policyholders, insurers will find themselves spending more time communicating with their clients transparently than in previous years. 

With the upkeep of digitization comes a higher risk of fraud. In 2023, we will see more anti-fraud technology emerging in the insurance industry to combat criminals who have found new ways to exploit technology to commit crimes. Document reviewing platforms like Wisedocs and insurance company mobile applications must remain vigilant to ensure their clients have the utmost confidentiality and security of their personal information.  

In terms of Wisedocs, they consistently audit their platform to ensure the most up-to-date standards are adhered to while handling sensitive content. Insurance companies are hiring highly trained engineers to secure databases with the latest firewall features. They will also have to stress their value by marketing ways their customers can save while they simultaneously raise their rates.