3 technological breakthroughs that are transforming the insurance industry
12 April 2022 · By Ana Navarrina
The insurance industry is evolving at a rapid pace. It’s a far cry from the industry we knew just a few years ago and continues to change thanks to new technologies. While we wait and see what the future has in store, let’s look at the three biggest technological breakthroughs that have revolutionized the insurance sector for the better.
Data drives everything we do in this industry. The more data we have, the more accurate our decisions can be. Accurate decisions are crucial to customer satisfaction, so we’re always looking for ways to improve our decision-making abilities. Thankfully, we now have the Internet of Things (IoT) to help us.
The IoT is an expansive network of billions of physical data tracking devices, from smartwatches to vehicle sensors. These devices track various data and connect to the internet to give insights into how customers are using their devices. This has been incredibly beneficial for insurance companies and policyholders for several reasons including:
IoT sensors offer a kind of early warning system for vehicle owners. Various sensors placed around the vehicle can identify defects that form over a period of time and alert the owner to the issue before it becomes costly to repair. This is especially advantageous to fleet rental companies, which need to manage a large number of vehicles.
IoT sensors can also save vehicle owners money by throwing away maintenance scheduling based on arbitrary timeframes. Instead, the sensors keep track of the condition of various components, offering a data-driven way for owners to know when the vehicle needs maintenance.
Alongside the cost benefits of an IoT-driven maintenance schedule, vehicle owners also benefit from increased safety. IoT sensors can alert owners to any dangerous defects that need repairing, but they can also automatically detect when an accident occurs and inform the relevant authorities with accurate GPS information. This allows emergency services to reach you far more quickly than traditional methods.
Generate new revenue
One of the major pain points for insurance customers is the lack of personalized service. Many policyholders take out plans that may not cover everything they need or have too many features that they won’t need.
This doesn’t need to be an issue for insurers using IoT. IoT gives you access to a wide range of data points that provide a comprehensive image of every policyholder. You can use this data to identify features that aren’t being used, popular features, and features that could be valuable to policyholders.
This kind of data is incredibly valuable to companies looking to generate new revenue because it can help guide business strategy by focusing on customer needs.
IoT also enables cross-selling to customers. Many IoT sensors are built into products, but customers can also expand their data range by purchasing various extra devices that improve their lives. These devices can include smoke detectors, doorbell cameras, CCTV facilities, “black box” devices for vehicles.
A blockchain is a digitally distributed, decentralized, public ledger that exists across a network. It was created in 2008 by someone (or possibly a group of people, we’re still unsure!) under the pseudonym Satoshi Nakamoto to serve as a public transaction ledger for Bitcoin. While blockchain isn’t exactly a new concept, it has recently come into prominence due to the rise of cryptocurrencies.
Blockchain has some really interesting applications in insurance, including:
In the insurance sector, trust has a primary, decisive and very sensitive role in the client-company relationship. The insurance company comes into the policyholder’s life when they are going through a negative, frustrating experience, feelings that trusting their insurance company can ease; at the same time, fraud is one of the biggest setbacks companies face.
Here is where Blockchain comes into play. It is a distributed database system in which transactions and records can be signed, exchanged, and verified without the control of a central party. This secure, open means of conducting business transactions creates a level of transparency, security and trust not previously possible, and that is why at Bdeo it is key for our product.
Blockchain technology provides stronger transactional security than traditional, centralized computing services. It creates a situation where there is no single point of contact, which stops cybercriminals from tracking down information and its sources.
According to PwC, a smart contract is a digitally signed, computable agreement between two parties. A virtual third party can execute and enforce some of the terms of these agreements. Smart contracts can trigger actions, like claim payouts, when specific criteria are met. This can help insurers speed up the claims process and automate much of the work that would normally need to be done by a person.
Artificial & Visual Intelligence
Regular readers of the Bdeo blog should already know the substantial range of benefits that comes with artificial and visual intelligence. For those new to the concept, let’s have a quick look at what AI and VI can do for your business.
Reduces claims processing time
The IoT sensors collect data, while blockchain and smart contracts help automate the claims process. AI and VI are the glue that helps the two come together by filling in the gaps with real, data-driven decisions. This allows insurance companies to focus human intervention on the cases that really need it, providing a more in-depth client treatment, and at the same time shortening the time it takes to solve simpler cases.
Improves customer experience through better customer service
The modern customer wants to feel like a person, not a number. AI-powered chatbots and machine learning allow companies to build a personality profile on every policyholder. You can then use this information to offer personalized policies and natural conversations that make customers feel truly valued.
Bdeo uses visual intelligence to place the claims process in the hands of the policyholder. They can be guided through the claims process by the AI through a digital, remote process that allows insurers to speed up the claims management and underwriting process. This can help claimants feel more in control when making a claim which is incredibly important when customers may already be stressed and rattled. Thus, the policyholder’s experience is improved.
Companies can use AI and VI to capture evidence and compare incoming claims to previous claims. This, combined with machine learning, can identify abnormal features of a claim that could be signs of fraud.
The next step in the technology revolution
The insurance industry is shifting rapidly thanks to advances in technology and changes to regulations that allow for a more modern approach to insurance. If you’re serious about keeping up with the latest insurance tech, Bdeo can help you stay ahead of the game. Let us show you how with a quick demo by our experts.
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Visual Intelligence applied to the insurance industry
Artificial Intelligence in general, and Visual Intelligence in particular, are very present in our days. Perhaps, much more than we imagine.