Shifting technology trends in insurance are nothing new. The industry has a long and storied history with tech. From meaningfully engaging with policyholders online to gathering, managing, and protecting sensitive customer data in the cloud, we’ve come a long way from filing cabinets and call centres. But with the rapid advances in computing hardware and software (not to mention data processing speeds), the insurance sector is on the cusp of new and potentially game-changing levels of innovation. As a result, many companies are pushing the envelope when it comes to customer experience and engagement. That’s something we at YuLife pride ourselves on. Our commitment to emerging technologies has already helped us drive industry-leading engagement levels for employee benefits!Here, we take a look at three technology trends in insurance that are driving better engagement with customers — and examine their impact on life insurance, in particular. Gamification is influencing (and rewarding) positive behaviour changesAs technology trends in insurance go, gamification is one of the most exciting. Put simply, it’s the use of gaming mechanics — points, leaderboards, rewards — in a non-gaming setting. You might be familiar with gamification if you’ve used apps like Duolingo or FitBit. As you progress through levels within the app, you’re rewarded with badges to reflect your achievements (e.g. words learned in French or the number of steps completed in a day). “The essence of gamification theory is that people are more engaged with an activity when they are also having fun,” explains YuLife CTO, Josh Hart. “By encouraging people to engage in desired behaviours and showing them a path to master this activity, gamification harnesses our natural predisposition to compete and collaborate and share experiences with our peers.”This urge to compete, collaborate, and share lends itself to group life insurance in particular. While the insurance policy acts as a safety net for loved ones should the worst happen, it can’t simply exist in the background. We’ve seen an opportunity to enhance engagement with employee benefits by encouraging staff to live healthier lives through exercise, and mindfulness — and rewarding them for doing so. As well as providing quick and easy access to benefits including Virtual GP and Employee Assistance Programme (EAP) to ensure your people bounce back faster. Via our group life insurance product, staff can earn YuCoin (our in-app currency) by simply walking, running, cycling, or spending a few minutes a day practising mindfulness. Then they can spend their YuCoin on a variety of perks, rewards, and environmental initiatives, such as Amazon gift cards or Avios travel points. This has helped us put the “life” back into life insurance, transforming it into a life-affirming perk that protects, rewards & inspires. Artificial Intelligence (AI) is making claims easierMany life insurance policyholders will only ever engage with their insurance provider when the time comes to make a claim. In the past, this meant contacting an agent and dealing with the back-and-forth of providing information and establishing liability. The claims handling process of tomorrow will look very different, thanks in large part to artificial intelligence (AI). AI is a catch-all term for cutting-edge computer software and systems that are able to perform tasks that would normally require human intelligence (such as speech recognition, visual perception, and decision-making).According to McKinsey, more than half of all insurance claims activities will be replaced by automation by 2030. In particular, advanced algorithms will handle initial claims routing, increasing both efficiency and accuracy. But we don’t have to wait until 2030 to see AI in action. A form of AI called natural language processing (NLP) can already be used to extract meaning from text, automatically capturing and routing customer claims information to the right person. This allows for more customer self-service when making and monitoring a claim, reducing the need for agent intervention in all but the most complex cases. The Internet of Things (IoT) is helping reduce riskThe Internet of Things (IoT) is essentially a huge network of physical devices, sending and receiving information to and from one another over the internet. Take a quick look around you. You might just spot an IoT gadget in your home or office, from smart speakers like Alexa or Google Home to wearables like the Apple Watch or FitBit fitness tracker. Other examples include smart fridges, doorbells and security systems. For the insurance sector, the growing popularity of these devices means more (and better) data. And the right data can help enhance customer experiences while mitigating risk. Here are a few examples across different types of insurance:Health and life insurance: IoT devices could be used to monitor movement and heart rates to sleep quality and more. Customers can be incentivised to exercise more via rewards, improving their general health and wellbeing and lowering their risk of chronic disease. Home insurance: IoT sensors could be used to detect moisture levels and alert a homeowner to potential water damage or mould before it escalates into a major problem.Motor insurance: IoT sensors could be installed in a vehicle to monitor speed, acceleration, engine temperature, steering, oil levels, driving style and more. These data points could then be processed by AI software to alert the policyholder if their vehicle requires maintenance. Ultimately, rich data from IoT sources will help insurance companies identify minor issues before they mushroom into something larger (and more expensive). Read more: Can an app really influence behaviour change? A behavioural scientist explainsWhat does the future hold for Life Insurance? The COVID pandemic has thrust life insurance into the spotlight, and customer demand is at an all-time high. But there are more emerging technological advancements that will undoubtedly create even more demand in the not-so-distant future. In particular, the bio revolution will have a significant impact on life expectancy. Like the industrial revolution before it, the bio revolution will leverage the advances in biological science to improve medicine and medical treatments and eliminate chronic illnesses. This, in turn, will see more people living (and working) for longer. And many of these people could outlive their retirement savings.As a result, we could see significantly more people turning to life insurance as a financial safety net for their loved ones. In an environment of increased demand for life insurance, an individualised and engaging product is key. The technology trends we discussed above will be pivotal in attracting consumers to a streamlined plan tailored to their needs. For example, by tracking someone’s health, insurers could soon offer “fluid” cover, essentially allowing companies to pay less if their employees are living well.We’re not there yet, but the rewards your staff can earn through YuLife for making healthy choices might just give you a sneak peek into the future!