Futuristic insurance impact of technology convergence

Futuristic insurance impact of technology convergence

Swaminathan Kannan

Swaminathan Kannan,

Along with Data Analytics, when all the other new-age technology innovations such as Big Data, Cloud and Telematics are harnessed together to deliver a service, the possibilities of sophistication are endless. In this section we take a telescopic gaze at a future scenario where Data Analytics play a pivotal role, first by proactively trying to minimize the possibility of a risk event and hence reduce claims/loss ratio and also secondly, by improving degree of automation in operation to reduce combined ratio.

In the first scenario, in order to predict and prevent the occurrence of an accident, live data feeds from traffic cams, satellites, weather reports, bio sensors and internal sources will be analysed real tie through Big Data solutions and Cloud Analytics platforms. The output from the Analytics Engine will be notifications to either digital devices such as Telematics (Mobile Apps or devices installed in the cars) or to customers (via Support Helpdesk). This will help the customer to adjust their travel routes and steer clear of possible accident situations. This proactive mechanism can drastically reduce the loss ratio. The insurer may even decide to pass on some of the benefits to the customers through discounts / rewards schemes so that they are incentivised to partner with the insurer in this initiative.

n the second scenario, in case an accident does happen, Analytics may still play a part in the automation of processes that will follow the event. The First Notice of Loss Process can be automated through Telematics, traffic cams, mobile, etc. the assessment of the loss, including procedure like Fraud Detection, can also be made analytics driven. Analytics will also play a part in selection of repair shops and procurement activities. Big Data and Cloud technologies will handle the data processing and analysis needs and Social Media platforms can be leveraged to send and receive communication to/from the customers on a real time basis. The Straight Through Processing (STP) achieved will enable insurers to reduce claims leakage and improve operational efficiency (i.e. Improve Combined Ratio). Eventually, the reduce cycle time and hassle free service will also positively impact the customer experience.