Introduction
Many modern technologies find their application and way of realization in the market. Some examples of these high technologies include Artificial Intelligence (AI), Insurtech, and Virtual reality. The high-tech industry has been developing rapidly in the past decades, and it is important to analyze new innovations to understand how they influence the market and what should be done to ensure their effective use. AI, Insurtech, and Virtual reality will be presented and discussed in relation to their impact on the market, as well as the disruptions and benefits they may cause.
Artificial Intelligence, Insurtech, and Virtual Reality
The contemporary definition of artificial intelligence is the study and creation of intelligent agents. An intelligent agent is a system that understands its surroundings and takes actions that optimize its chances of success. The AI market is currently extremely diverse, and some of the most well-known applications are machine learning, natural language processing, computer vision, and others (Furman & Seamans, 2019). In addition, AI research examines IT and telecommunications, retail and e-commerce, BFSI, healthcare, manufacturing, automotive, and other industries. North America, Europe, Asia-Pacific, and LAMEA are the regions studied (Global Insurtech, 2022). Amazon Web Services, Inc., Apple Inc., Google LLC, IBM Corporation, Intel Corporation, Microsoft Corporation, Nvidia, Oracle Corporation, SAP SE, and Siemens lead the worldwide artificial intelligence industry.
AI algorithms can only be developed after dealing with advanced algorithms. The market might be disrupted by the fact that maintaining AI and automated systems can be challenging at times. It requires excellent software engineering skills as well as an extensive understanding of distributed and concurrent programming and communication protocol troubleshooting. However, in many places, particularly in emerging economies, adequately trained workers are in limited supply. As a result, a fundamental limiting constraint for the expansion of the AI sector is a lack of competent workers and employees. The ability of AI technology to rapidly analyze collected data and employ complicated algorithms to forecast following actions in real-time promotes productivity improvement; for example, Netflix may propose movies based on previous viewing experiences.
Insurtech innovations generally refer to employing cutting-edge insurance technology to save consumers and insurers money, improve operational efficiency, and improve the entire customer experience. Due to factors such as claim process simplicity, improved client communication, and automation capabilities, the global Insurtech market is developing rapidly, expected to continue growing significantly over the projected period. Insurtech adoption is significantly higher in the health insurance market than in other insurance sectors such as property and casualty, automotive, and others. Companies like Lemonade and Zhong An lead the Insurtech sector in the property and liability insurance industry (Ostagar, 2018). The industry’s distinctive features are its innovations and innovative concepts for strengthening the insurance value chain, attracting funding from legacy firms and investors worldwide.
The rapid development of Insurtech causes a number of disruptions to the insurance market and has certain benefits for the customers. Operational resilience is a major Insurtech trend that disrupts the insurance market. While Insurtech systems utilize digital means to transform their processes, old technology systems may not be able to “change policies, update admin, and develop new products” (Ismail, 2021, par. 4). In turn, the main benefit of the innovation is the fact that Insurtech companies can provide their clients with “seamless, digital, customer journeys and more personalized products” (Ismail, 2021, par. 7). Other benefits offered by Insurtech systems are hyper-personalization, remote working, real-time information, and increased accuracy due to operational digitalization.
Virtual Reality (VR) is a computer-generated environment that allows the spectator to be entirely immersed in their surroundings. This reality is experienced by using a Virtual Reality headset or helmet. Virtual reality is used to engage users of video games in a way that allows them to feel like one of the characters. Users can also practice challenging tasks, such as performing surgery or having sports training to increase performance. Virtual reality provides a virtual experience for customers and has a variety of applications in retail, healthcare, automotive, gaming, and entertainment. Analysts predict that advances in VR hardware, such as creating smaller and more fashionable gadgets, will drive consumers and companies to adopt the technology (De Regt et al., 2020). Healthcare, workforce development, and manufacturing are all expected to be affected by virtual reality. The market industries expected to be most disrupted by VR technologies include banking, healthcare, airport management, logistics, etc. These industries will be transformed due to the significant increase in the efficiency of their daily operations.
One of the benefits of VR technology is the fact that it is already being used in training simulations for surgeons and industry workers and immersive teaching experiences in the classroom. Virtual training, help, marketing, engineering and maintenance, designing, and simulation activities are conducted using this immersive technology with employees and workers (De Regt et al., 2020). Furthermore, the market expansion is fueled by technical advancements in 5G infrastructure technologies. To improve the consumer experience, the major industry participants focus heavily on providing sophisticated hardware and content.
Conclusion
It can be concluded that Artificial Intelligence, Insurtech, and Virtual Reality are among the most rapidly developing and commonly applied technologies nowadays. Companies and organizations from many sectors of the global market use these technologies, conduct research and strategize on the ways to develop them. Further studies can be recommended to consider the impact of new technologies on the market and the risks associated with introducing them.
References
De Regt, A., Barnes, S. J., & Plangger, K. (2020). The virtual reality value chain. Business Horizons, 63(6), 737-748.
Furman, J., & Seamans, R. (2019). AI and the economy. Innovation Policy and the Economy, 19(2), 161-191.
Global Insurtech market size, share & industry trends analysis report by component, by end-use, by technology, by type, by regional outlook and forecast, 2021-2027. (2022). Research and Markets – Market Research Reports.
Ismail, N. (2021). Insurtech disruption trends: Is traditional insurance broken? Information Age.
Ostagar, A. M. (2018). Innovation and impact of technology in insurance sector. SAARJ Journal on Banking & Insurance Research, 7(5), 36.