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should be focused on improving the foundations of their data operations by improving areas such as data governance instead of relying on shiny new things like 5G . Bottom line , 5G will be a nice boost to digital operations in the insurance sector , but the industry can ’ t kid itself that it hasn ’ t got a lot of work to do on its foundational data processes before reaping the benefits of 5G .”
latency to help decrease transaction and settlement times . It will also facilitate the adoption of AI to enable greater personalisation and improvements to customer experience .
“ Typically , whenever a new wireless communications technology is introduced , the volume of data used increases significantly . This additional data traffic will put more stress on backbone networks , and many will need to find ways to increase their available bandwidth and likely data centre capacity .”
However , Chris Gill , Director of Risk and Insurance Markets , Over-C , believes the increased connectivity of 5G will simply enhance the services offered by insurtechs , rather than play a marked role in increasing its adoption . He also says legacy insurers must re-evaluate their data systems and make sure they are adequately prepared .
“ 5G only really serves to enhance current data processes rather than transform them ,” Gill points out . “ The insurance industry
The IoT in a decade With such rapid expansions and new technologies skyrocketing , it ’ s hard to predict what the future of the IoT will look like in relation to insurance . However , it ' s likely that the latest innovations in augmented and virtual reality , gamification , and the Metaverse , will all play a role in this increasingly complex world . Gill believes the next 12 months will play a vital part in shaping which directions insurance will shift in .
He says there are some huge opportunities for the commercial insurance sector if they can connect and utilise the power of their customers ' IoT effectively , from gathering dynamic risk data and , ultimately , to develop a deeper understanding of their customer ’ s risk quality .
“ Customers who have embraced IoT have experienced significant improvements in ESG , risk reduction , and claims defensibility .”
In terms of trends to watch out for , Gill says many more insurers monitoring
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