As is the case in banking and finance, innovation has dramatically changed the insurance industry. “Insurtech” leverages advanced financial technology that relies on AI, IoT, telematics, robotic process automation, and cloud computing to modernize operations and incorporate advanced analytics. Mobile-first technology in insurtech can also vastly improve the customer experience.
Biometric authentication is fast becoming a gold standard for technology that defends against fraud, with financial institutions, banks, smartphone manufacturers, and payment processing firms working together to protect consumers. Advanced analytics and AI/ML are also key to detecting suspicious transactions and irregular data patterns.
Big data is key to the digital transformation process, and the data analytics market is projected to top $62B by 2025. The financial services industry is repository to at least one exabyte (1 billion gigabytes) of stored data, meaning that financial institutions need to be aggressive about regulatory compliance on a massive scale.