The Internet is about to get a whole lot faster.
5G Internet is gradually rolling out across the US in 2020, promising faster speeds and more capabilities for commercial industries.
What does this mean for the insurance industry, especially agencies?
What is 5G?
5G is fifth-generation cellular wireless communication, following our current 4G. In short, it is a faster method of communicating while also allowing higher volumes of connected devices at a time.
5G Internet speeds are said to be 1,000x faster than 4G, revolutionizing the way we rely on technology. The low latency of 5G networks is said to offer a faster reaction time than the human brain.
Initially, Internet users will observe less buffering when streaming video, fewer dropped calls from busy service lines and instant text-communication speeds. But these upgrades only touch the surface on what may change for commercial industries.
How Does 5G Impact Insurance Agencies?
Insurance agencies don’t normally own their own historical data. Agencies rely on carriers to share data for selling policies. With more data widely available through 5G networks, agencies are at an advantage to leverage more data without having to host it or own it themselves. This means a greater, leaner efficiency and the ability to work with data in more predictable ways.
The disadvantage could be carriers no longer needing agencies to sell coverage. That’s under the premise that self-service overtakes the need to have policy administrators, which could happen much further down the line.
3 Ways 5G Will Change the Insurance Industry
1. More InsureTech Data Available
The Internet of Things (IoT) has arguably affected the auto insurance industry the most. This data is easy to generate, as the policyholder’s car can be recorded, logging mileage, speed and overall usage with each drive taken.
Expect more data to be collected by the insurance sector using IoT devices, giving agencies more data to work with for selling policies and retaining customers. With IoT, the policyholder’s car isn’t the only thing that could generate data. An oven could share data in order to collect claim information from a home fire. A drone could share more precise location data, similar to an upgraded Google Maps, through 5G connectivity. Cities may change to fully leverage connected data in many ways, including public data for insurance technology to put to use.
2. Faster Computing Speeds
Wouldn’t it be nice to have your question answered just after you ask it, no matter how difficult it is to answer? Many companies are investing in data analytics, faced with an overwhelming amount of Big Data. This data requires the right solutions paired with the right experts in order to make sense of outcomes.
5G allows computers to work much faster, and in many cases, removes user error by handling the solution automatically. Expect more self-service features to come from the next generation of 5G, as computers will be able to handle more difficult tasks without guidance. Predictive technology is closely in focus by leveraging historical data to make predictions. The more data available, the more accurate these predictions will become. This means cost savings for the industry at large by making smarter decisions, which will grow and improve even more over time.
3. More Creative Products
The insurance industry will be pushed to come up with creative new product offerings, making the most of cost savings and pulling in more customers. The next step will look similar to how IoT-connected cars today will become self-driving tomorrow. A very big leap in technology, but one that’s looking bound to happen.
Carriers can begin developing mobile apps that are more interactive for gathering information during underwriting reviews or as part of the claims process. This could mean for the policyholder to take a picture or video with an all-new purpose. With the rise of augmented reality, it’s tough to imagine how greatly day-to-day life could change. The popular mobile game Pokémon GO is an early example of how quickly this trend can take hold for average consumers.
How P&C Insurance Solutions Tie Into 5G
The best cloud insurance software to work with advanced computing networks is robust, flexible and tailored to your needs.
WaterStreet Company’s P&C Insurance Solutions integrate with third party data to provide your policy administrators and underwriters with all the information needed to upsell, retain and see through the policy lifecycle.
Reach out to WaterStreet Company today to request a consultation and demo of our solutions.