How Virtualization Tech Is Transforming Insurance Operations and Compliance

Imagine a world where insurance services like claims processing, customer service, and data management are all automated, scalable, and secure from cyber threats. This world isn’t a dream, it’s a reality quickly coming true in a world of advancing insurance technology. In fact, an increasing number of insurance carriers and agencies are adopting technologies like insurance automation technology, AI-driven risk assessment, and digital insurance operations to improve underwriting, claims processing, and regulatory compliance.

A study by McKinsey & Company analyzed the top 10 tech trends transforming the insurance industry. Of these, they identified five that would have the most profound impact on the products and services insurance carriers, agencies, and MGAs/MGUs provide their customers. 

We’ve created a deeper dive into these five areas here, but if you’re looking for a faster read, we’ve decided to focus one quick blog on each of these top five areas of technology that are considered the industry game-changers of the future. Here, we will consider the area of next-level product and service virtualization.

Photo by Andrea De Santis on Unsplash

What is next-level product and service virtualization?

It’s easy enough monitoring a small piece of equipment for maintenance needs, but what about something much larger? Advancements in virtualization are giving people the ability to examine cars, rooms, buildings, and even entire outdoor spaces in real time through the technology of digital twins. By giving insurance adjusters and underwriters alike the access to “see” properties without having to drive to remote areas and explore “irl,” insurance virtualization and digital twin technology are helping carriers modernize underwriting, improve property risk assessment, and streamline insurance operations.

A digital twin is a dimensionally accurate 3D model that can aid in predicting maintenance needs before they occur. It’s basically a digital replica of a product, machine, or space that allows users to manage their assets without having to physically examine them. When we’re talking about insurance, having a digital twin gives you a real-time digital replica of a property, asset, or environment. Again, by giving underwriters, risk management inspectors, and claims adjusters the ability to explore a space without having to physically be present, digital twins help insurers improve underwriting accuracy, automate inspections, and strengthen risk management processes without the cost of physical travel.

What does next-level product and service virtualization mean for the future of insurance?

The benefits of increased virtualization in the insurance industry are plentiful. Virtualization technologies are helping insurance carriers improve claims management, accelerate underwriting workflows, strengthen insurance compliance operations, and reduce operational risk. Digital twins will aid in claims management by helping insurers predict risk and maintenance needs more accurately, and well before they occur. Digital twins will enable insurers by providing a 360 degree view of risk allowing them to predict future vulnerabilities for their customers and develop a proactive plan of action to manage them. For example, creating a digital twin of a homeowner’s property can help insurers predict maintenance risks before they become a bigger problem.

Examples of next-level product and service virtualization in the insurance industry

1. Digital twins allow insurers to instantly and fully visualize and assess risk for property & casualty coverage. 
2. Those assessing risk can “see inside” places previously inaccessible to them and more fully examine the risk profile 
3. The combination of AI and virtualization allows insurers to evaluate more properties, more fully, and more accurately than ever before in a fraction of the time it takes a human to do so

Evolve or be left behind 

The bottom line is the future is here for insurance businesses that want to stay competitive in an increasingly digitized market. Many of these technologies exist today, and are being heavily utilized in other industries while insurance as a whole continues to lag behind the technological wave.

This creates significant opportunities for insurance carriers, agencies, and MGAs investing in insurance compliance technology, distribution management systems, and producer onboarding automation. Insurtechs are launching and growing faster than ever, taking market share from legacy insurance industry players.

This is good news for insurance carriers, agencies, brokerages, and MGAs/MGUs who make a point of keeping abreast of technological advances. One of the fastest ways insurers can modernize operations is through insurance compliance automation software like AgentSync that streamlines producer licensing, agent onboarding, appointment management, and regulatory compliance workflows. AgentSync provides a modern, tech-forward user experience that will delight everyone from individual producers, to agency owners, to insurance carrier legal teams. 

Want to see AgentSync in action? Click here to watch an on-demand demo right now. If you’re curious about the other trends we’ve covered, make sure to download the white paper, or check out our blogs on AI, connectivity advancements, zero-trust architecture, and cloud-native infrastructure in the insurance industry.