There is a growing movement to encourage businesses to embrace sustainability. A recent survey found that 62% of customers feel that companies should do more to protect the environment. While the focus on sustainability is greatest in the oil industry and industries that produce plastics and other harmful products, it is important in all other sectors as well.
The insurance industry has recently started investing more in sustainable business practices. Their eco-friendly practices largely stem from their investment in new technology that can help lower their carbon footprint.
New Technology is Driving the Shift Towards Sustainability in the Insurance Sector
Back in 2014, we wrote that insurance companies were not prepared for the problems caused by climate change. They have since started doing their part to slow the problem. New technology is helping them shift towards eco-friendly business models.
The advancements in technology are changing every aspect of our lives. The insurance industry has also experienced exponential growth in the use of technology in the last couple of years. The use of technology in this sector is benefitting the insurance agencies, the environment and their customers alike. For instance, today’s customers have become more inclined towards using online mediums over offline to generate quotes for insurance.
Although the focus on new technology has largely focused on improving their bottom line, it is also helping make the insurance sector more sustainable. Capgemini talked about this in their article How insurers are driving the sustainability agenda back in April.
Many insurance companies and businesses are already using technological instruments to cater to the needs of their clients. Insures are utilizing them to gain an edge over the growing competition. On the other hand, business owners use it to enhance their business operations.
Here are the five ways technology is impacting the insurance sector at large and moving towards eco-friendlier business models.
Predictive Data Analysis Can Help with Their Business Practices and Reduce Environmental Waste
Many insurance companies have started collecting customer data and other insights. They are further analyzing this data to achieve better forecasts in terms of identifying and meeting the current and future business insurance requirements. Predictive data analysis with the help of technological instruments is also helping them identify the risk of insurance cancellation from the customer’s end.
Furthermore, they use this tool to assess the risk of fraudulent claims from businesses, manage several claims, and figure out their patterns.
There are also ways that predictive analytics can help insurance companies reduce their carbon footprint and environmental waste. They are able to use these algorithms to forecast future business activity and find eco-friendlier ways to respond to their concerns. For example, they can make a strong business case to move towards paperless policies by showing how much paper costs will rise in the future.
Artificial Intelligence Can Help the Environment and Insurance Business Practices at the Same Time
Artificial intelligence is considered a breakthrough in terms of technological advancement for the insurance industry. Many businesses seek personalized solutions for their insurance requirements. AI helps to facilitate insurance advisors to design solutions that meet unique client requirements.
Companies can use artificial insurance to alter the insurance underwriting process. Not only this, but AI can also be used to enhance the claim cycle by accessing enormous data within a short time. Businesses can utilize insurance agencies’ artificial intelligence-based systems to report claims.
AI can also help insurance companies lower their carbon footprint. One benefit is that they can communicate with customers remotely with VoIP tools. This prevents customers from having to drive to see an actuary, which obviously causes pollution.
Social Media Data Can Help Shift Towards Greener Marketing Practices
We have talked at length about the benefits of green marketing. Digital marketing is one of the best ways to go green. You can lower your carbon footprint by investing in online marketing, because you don’t have to waste paper or use fuel to have your messages delivered.
Earlier, people used social media for entertainment purposes only. Gradually, many businesses started to use them for marketing and advertising. Today, these platforms are also utilized for business insurance agencies. For instance, data can be obtained from social media to enhance the assessment of risks for businesses.
Also, many insurance companies have shifted their customer service and support on social media platforms where the clients can avail them quickly. As a user, you can connect with customer service on any social media to find a quick resolution to your query.
These days, many companies have started using chatbots to carry out sound customer communications. According to a study, by 2025, more than 90 percent of customer communications will be managed by chatbots.
Chatbots are AI-enabled instruments facilitating intelligent communication with customers and helping them with commonly faced issues. They save an insurance company a lot of time and resources. They complete all the common processes that would otherwise take a long time, like filling claims, policy applications, and so on.
Chatbots are another way to go green by reducing your carbon footprint.
Nowadays, drones are also used by several insurance companies for risk assessment and calculation. Drones can be used to survey business premises such as large spread-out businesses, including plants and farms, factories, and more. Their growing use can save insurers ample money in terms of assessing risk factors for the business.
Drones are also better for the environment. They require a lot less fuel than driving a car, which lowers your carbon footprint.
At present, the use of drones is limited to a few companies only. But it is believed that they will utilize them more in the next few years.
New Technology is the Key to Helping Insurance Companies Go Green
These developments in technology can also help insurance providers multiply their revenue and profitability, while lowering their carbon footprint at the same time. Whether you are a business or an individual, you can get in touch with a service provider like Salty Insurance and use all the growing technological advancements, tools, and systems to fulfill your purposes. You can create a more profitable and eco-friendlier insurance business.
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