The document discusses how big data and telematics technologies can transform the motor insurance industry in the Middle East. It notes that while consumers are willing to share their data in exchange for cheaper premiums, the insurance sector has lagged in utilizing big data compared to other industries. Telematics allows insurers to more accurately price policies based on driving behavior data and can help improve road safety. Adopting these technologies represents a major opportunity for motor insurers in the Middle East to improve their business models, customer experience, and gain a competitive advantage. However, privacy concerns and high data costs currently pose barriers to their implementation in the region.
Id insurance big data analytics whitepaper 20150527_lo resPrakash Kuttikatt
The document discusses how big data and analytics are disrupting the insurance industry. It provides background on the authors and describes the Australian insurance landscape, noting challenges like an aging population and increased natural disasters. It then discusses how big data is transforming the insurance value chain by enabling more accurate risk assessment and pricing through analysis of diverse new sources of data like telematics and social media. Insurers who leverage big data and analytics to gain insights and improve customer relationships will have a competitive advantage over those who do not adapt to this new digital environment.
The full potential of insurance telematicsMatteo Carbone
Auto telematics represents the most mature insurtech use case, as it has already passed the test and experimentation phase within the innovation unit. It is currently being used an instrument for daily work within motor insurance business units. In this domain, Italy is an international best practice example
ITL insurtech 5 value levers for auto telematicsMatteo Carbone
Telematics has the potential to be a major innovation in the auto insurance industry by utilizing five value levers: 1) risk selection, 2) risk-based pricing, 3) value-added services, 4) loss control, and 5) loyalty and behavior modification programs. The document discusses each of these levers in detail and how insurers can use telematics data to better assess risk, set premiums, offer additional services, reduce claims, and incentivize safe driving behaviors. For telematics to be truly transformative, however, insurers must integrate all five levers into a cohesive approach.
Insurtech.news - INSIGHT: INSURANCE INTERNET OF THINGS INDUSTRY SURVEYInsurtechNews.com
At the beginning of the year, everyone is looking at how to identify the crucial elements of change that will affect their business in the next twelve months. Discussions from CES 2016 showed that the attention for a lot of companies has turned to connected devices and the internet of things. There are next-gen refrigerators that look like smartphones, smart shoes that track your running habits, and autonomous vehicles that drive for you – that’s just to name a few! But, what we need to ask is who this digital ecosystem is going to affect and what players are being left out of critical first steps of IoT deployment. Recently, FC Business Intelligence asked over 300 insurers what they think the internet of things could deliver for their business. Take a look at the survey infographic featuring insight in to the applications of IoT for insurers for exclusive insight.
InsurTech trends: Connected Insurance as the most relevant one considering TAM and maturity level. It has already shown adoption and material impacts in some markets.
The document discusses an observatory created to study telematics and connected insurance in Italy. It provides the following key details:
- The observatory has 26 insurance companies offering telematics-based motor insurance policies in Italy, with over 4 million black boxes installed. Telematics accounts for 16% of auto insurance contracts.
- 65% of observatory members have seen a material impact of telematics on the Italian auto insurance market. The successful experience is believed to extend to other lines of business.
- The observatory aims to spread innovation in the insurance sector by rationalizing knowledge, giving critical trends analysis, and stimulating discussion on common challenges. It addresses connected insurance topics at plenary meetings.
Id insurance big data analytics whitepaper 20150527_lo resPrakash Kuttikatt
The document discusses how big data and analytics are disrupting the insurance industry. It provides background on the authors and describes the Australian insurance landscape, noting challenges like an aging population and increased natural disasters. It then discusses how big data is transforming the insurance value chain by enabling more accurate risk assessment and pricing through analysis of diverse new sources of data like telematics and social media. Insurers who leverage big data and analytics to gain insights and improve customer relationships will have a competitive advantage over those who do not adapt to this new digital environment.
The full potential of insurance telematicsMatteo Carbone
Auto telematics represents the most mature insurtech use case, as it has already passed the test and experimentation phase within the innovation unit. It is currently being used an instrument for daily work within motor insurance business units. In this domain, Italy is an international best practice example
ITL insurtech 5 value levers for auto telematicsMatteo Carbone
Telematics has the potential to be a major innovation in the auto insurance industry by utilizing five value levers: 1) risk selection, 2) risk-based pricing, 3) value-added services, 4) loss control, and 5) loyalty and behavior modification programs. The document discusses each of these levers in detail and how insurers can use telematics data to better assess risk, set premiums, offer additional services, reduce claims, and incentivize safe driving behaviors. For telematics to be truly transformative, however, insurers must integrate all five levers into a cohesive approach.
Insurtech.news - INSIGHT: INSURANCE INTERNET OF THINGS INDUSTRY SURVEYInsurtechNews.com
At the beginning of the year, everyone is looking at how to identify the crucial elements of change that will affect their business in the next twelve months. Discussions from CES 2016 showed that the attention for a lot of companies has turned to connected devices and the internet of things. There are next-gen refrigerators that look like smartphones, smart shoes that track your running habits, and autonomous vehicles that drive for you – that’s just to name a few! But, what we need to ask is who this digital ecosystem is going to affect and what players are being left out of critical first steps of IoT deployment. Recently, FC Business Intelligence asked over 300 insurers what they think the internet of things could deliver for their business. Take a look at the survey infographic featuring insight in to the applications of IoT for insurers for exclusive insight.
InsurTech trends: Connected Insurance as the most relevant one considering TAM and maturity level. It has already shown adoption and material impacts in some markets.
The document discusses an observatory created to study telematics and connected insurance in Italy. It provides the following key details:
- The observatory has 26 insurance companies offering telematics-based motor insurance policies in Italy, with over 4 million black boxes installed. Telematics accounts for 16% of auto insurance contracts.
- 65% of observatory members have seen a material impact of telematics on the Italian auto insurance market. The successful experience is believed to extend to other lines of business.
- The observatory aims to spread innovation in the insurance sector by rationalizing knowledge, giving critical trends analysis, and stimulating discussion on common challenges. It addresses connected insurance topics at plenary meetings.
This document outlines the agenda and key topics for an Insurtech Sydney event on opportunities for Australian startups and insurers in insurance technology (insurtech). The event featured discussions on insurtech trends such as customer focus, data unlocking, and technology innovation. It also examined insurtech disruption and investment globally. A panel discussed opportunities for collaboration between startups and insurers. The event concluded with networking and an invitation to future Insurtech Sydney meetups focused on connecting people interested in insurtech.
Connected cars and insurance claims - a new paradigmMatteo Carbone
The benefits of telematics data for handling claims are significant and can be divided into three main categories: a proactive approach, objective information and loss prevention and mitigation
Italian firms have created a telematics "observatory" to promote innovation in insurance related to homes, health, industrial risks, and cars. While online insurance channels have grown, many customers still prefer personal contact. Digital transformation is impacting insurance through increased customer expectations of digital services, more flexible products, collaborations between insurers and other sectors, and insurers providing additional services beyond risk coverage. The observatory aims to represent cutting edge global innovation, provide strategic vision for major initiatives, and stimulate research on issues like privacy and cyber risk. InsurTech startups are bringing innovation to insurance and received $2.5 billion in investments in 2015, up from $0.7 billion in 2014. Insurers'
The document discusses how data and technology are transforming the insurance industry. It covers topics like how insurers are using data from telematics, health apps, and other sources to better assess risk and offer more personalized premiums. This allows for pricing tailored to individuals based on their behavior rather than just demographics. However, increased data collection also raises privacy concerns for consumers about what data is being collected and how it will be used and secured. Insurers are aiming to address these concerns through transparency about their data practices while harnessing new sources of data to improve their business.
The first think tank dedicated to the Connected Insurance (Telematics & Insurance IoT), the most relevant insurTech trend (representing around 80% of the $16,5B invested on IsurTech globally as of today)
Will fintech newcomers disrupt health and home insurance? Matteo Carbone
Fintech companies are looking to disrupt health and home insurance through new technologies like wearables and connected home devices. Insurers can leverage these technologies to improve risk assessment, offer value-added services, enhance the customer experience, and implement behavior-based pricing models. Examples include Oscar's health insurance app that rewards healthy behaviors, Medibank's wellness services that boost sales, and home insurers installing sensors to better manage risks and offer additional home services. Integrating emerging technologies presents opportunities for insurers to generate value across the insurance lifecycle.
Motor insurance: services telematics basedMatteo Carbone
The black box makes it possible for Insurers to enrich their motor insurance value proposition, de-commoditizing the car insurance policy and creating new sources of income
I'm pleased to share the first Singapore InsurTech Landscape. The focus is on the start-ups founded in SG, as well as those with regional HQs or major projects (such as Collab). Hats off to a vibrant ecosystem!
Please note that landscapes are living documents. Feel free to DM me on LinkedIn to agree, disagree or add your start-up to the landscape!
1) The document discusses how insurance companies are facing changes from new technologies like the Internet of Things (IoT) and a shift towards customer centricity.
2) It explains that IoT allows insurers to engage customers continuously through risk monitoring and prevention instead of just at claim/renewal times. However, insurers still need to prove the value of prevention to customers.
3) The rise of ecosystems centered around customers, rather than individual companies, is discussed. Insurers will need to redefine their roles and work with other partners to serve customers in these ecosystems.
The document describes an insurance IoT observatory that provides research and knowledge sharing on insurance telematics and IoT applications. It outlines the scope of the observatory, the members in 2019, and the thematic areas covered which include the impact of IoT on risk selection, claims, customer relations and privacy/data issues. It also details the plenary symposiums held in 2019 on various IoT topics and quotes from participating insurers who found the observatory's deep dive sessions and engaging content valuable for innovation.
Passenger Cars After Market Global Market Report 2021: COVID-19 Growth And Ch...Sreeramakrishna B
Major players in the passenger car aftermarket are Denso Corporation, Robert Bosch Gmbh, Continental AG, 3M company and Delphi Automotive PLC.
Read More @ https://bit.ly/3t44bgo
How Technology is Transforming the Insurance IndustryFecund-Software
The world of constantly changing technology, Insurance industry is not untouched. Today’s insurance agents don’t operate in the same way that they did 20 years ago. Technology offers amazing new ways for agents to provide personalized, advanced service to community members.
This blog gives you a sneak peek at what you can expect technology to look like in the coming years and how it could affect the insurance industry
Accenture research reveals how transforming to a living business enables insurance companies to achieve sustainable growth through hyper-relevance. To learn more visit: https://www.accenture.com/us-en/insights/insurance/living-business
The Connected Insurance Observatory is think tank specialized on telematics and insurance IoT. It is engaging insurers, distributors, institutions and tech players with the goal to spread a culture of innovation throughout the insurance sector
7 Ways Insurance Brokers Should Approach InsurTechSiren Group
“InsurTech” is a term used quite often these days – a spin-off of the even more popular word “FinTech.” It refers to technologies and platforms. These platforms can help optimize any of the principles for success or requirements of insurance.
InsurTech encompasses companies that provide insurance, but engage technology in a user-centric way.
Here are 7 ways of making InsurTech the heart of your business:
Digital transformation is disrupting the insurance industry in three main ways: 1) Through hyper-personalized insurance products enabled by new data sources and customer data; 2) New competitors like insurtech companies and other industries entering insurance; 3) Emergence of new data sources and technologies that allow for new types of products and more customer-centered experiences. Insurers must leverage semantic graph technologies and data fabrics to integrate diverse new data sources, gain insights from data to develop new products and services, and remain competitive against new entrants.
Smarter Auto for the Hyperconnected World Matteo Carbone
This document discusses the growing use of telematics data in auto insurance. Telematics data enables more personalized insurance pricing and customer experiences. It can be used across the insurance value chain from pricing to claims management to additional services. While telematics is more established in the US and Italy, its use in pricing and underwriting has yet to be fully realized in most markets. As technology improves and costs decrease, the use of telematics data is expected to continue growing globally.
This document outlines the agenda and key topics for an Insurtech Sydney event on opportunities for Australian startups and insurers in insurance technology (insurtech). The event featured discussions on insurtech trends such as customer focus, data unlocking, and technology innovation. It also examined insurtech disruption and investment globally. A panel discussed opportunities for collaboration between startups and insurers. The event concluded with networking and an invitation to future Insurtech Sydney meetups focused on connecting people interested in insurtech.
Connected cars and insurance claims - a new paradigmMatteo Carbone
The benefits of telematics data for handling claims are significant and can be divided into three main categories: a proactive approach, objective information and loss prevention and mitigation
Italian firms have created a telematics "observatory" to promote innovation in insurance related to homes, health, industrial risks, and cars. While online insurance channels have grown, many customers still prefer personal contact. Digital transformation is impacting insurance through increased customer expectations of digital services, more flexible products, collaborations between insurers and other sectors, and insurers providing additional services beyond risk coverage. The observatory aims to represent cutting edge global innovation, provide strategic vision for major initiatives, and stimulate research on issues like privacy and cyber risk. InsurTech startups are bringing innovation to insurance and received $2.5 billion in investments in 2015, up from $0.7 billion in 2014. Insurers'
The document discusses how data and technology are transforming the insurance industry. It covers topics like how insurers are using data from telematics, health apps, and other sources to better assess risk and offer more personalized premiums. This allows for pricing tailored to individuals based on their behavior rather than just demographics. However, increased data collection also raises privacy concerns for consumers about what data is being collected and how it will be used and secured. Insurers are aiming to address these concerns through transparency about their data practices while harnessing new sources of data to improve their business.
The first think tank dedicated to the Connected Insurance (Telematics & Insurance IoT), the most relevant insurTech trend (representing around 80% of the $16,5B invested on IsurTech globally as of today)
Will fintech newcomers disrupt health and home insurance? Matteo Carbone
Fintech companies are looking to disrupt health and home insurance through new technologies like wearables and connected home devices. Insurers can leverage these technologies to improve risk assessment, offer value-added services, enhance the customer experience, and implement behavior-based pricing models. Examples include Oscar's health insurance app that rewards healthy behaviors, Medibank's wellness services that boost sales, and home insurers installing sensors to better manage risks and offer additional home services. Integrating emerging technologies presents opportunities for insurers to generate value across the insurance lifecycle.
Motor insurance: services telematics basedMatteo Carbone
The black box makes it possible for Insurers to enrich their motor insurance value proposition, de-commoditizing the car insurance policy and creating new sources of income
I'm pleased to share the first Singapore InsurTech Landscape. The focus is on the start-ups founded in SG, as well as those with regional HQs or major projects (such as Collab). Hats off to a vibrant ecosystem!
Please note that landscapes are living documents. Feel free to DM me on LinkedIn to agree, disagree or add your start-up to the landscape!
1) The document discusses how insurance companies are facing changes from new technologies like the Internet of Things (IoT) and a shift towards customer centricity.
2) It explains that IoT allows insurers to engage customers continuously through risk monitoring and prevention instead of just at claim/renewal times. However, insurers still need to prove the value of prevention to customers.
3) The rise of ecosystems centered around customers, rather than individual companies, is discussed. Insurers will need to redefine their roles and work with other partners to serve customers in these ecosystems.
The document describes an insurance IoT observatory that provides research and knowledge sharing on insurance telematics and IoT applications. It outlines the scope of the observatory, the members in 2019, and the thematic areas covered which include the impact of IoT on risk selection, claims, customer relations and privacy/data issues. It also details the plenary symposiums held in 2019 on various IoT topics and quotes from participating insurers who found the observatory's deep dive sessions and engaging content valuable for innovation.
Passenger Cars After Market Global Market Report 2021: COVID-19 Growth And Ch...Sreeramakrishna B
Major players in the passenger car aftermarket are Denso Corporation, Robert Bosch Gmbh, Continental AG, 3M company and Delphi Automotive PLC.
Read More @ https://bit.ly/3t44bgo
How Technology is Transforming the Insurance IndustryFecund-Software
The world of constantly changing technology, Insurance industry is not untouched. Today’s insurance agents don’t operate in the same way that they did 20 years ago. Technology offers amazing new ways for agents to provide personalized, advanced service to community members.
This blog gives you a sneak peek at what you can expect technology to look like in the coming years and how it could affect the insurance industry
Accenture research reveals how transforming to a living business enables insurance companies to achieve sustainable growth through hyper-relevance. To learn more visit: https://www.accenture.com/us-en/insights/insurance/living-business
The Connected Insurance Observatory is think tank specialized on telematics and insurance IoT. It is engaging insurers, distributors, institutions and tech players with the goal to spread a culture of innovation throughout the insurance sector
7 Ways Insurance Brokers Should Approach InsurTechSiren Group
“InsurTech” is a term used quite often these days – a spin-off of the even more popular word “FinTech.” It refers to technologies and platforms. These platforms can help optimize any of the principles for success or requirements of insurance.
InsurTech encompasses companies that provide insurance, but engage technology in a user-centric way.
Here are 7 ways of making InsurTech the heart of your business:
Digital transformation is disrupting the insurance industry in three main ways: 1) Through hyper-personalized insurance products enabled by new data sources and customer data; 2) New competitors like insurtech companies and other industries entering insurance; 3) Emergence of new data sources and technologies that allow for new types of products and more customer-centered experiences. Insurers must leverage semantic graph technologies and data fabrics to integrate diverse new data sources, gain insights from data to develop new products and services, and remain competitive against new entrants.
Smarter Auto for the Hyperconnected World Matteo Carbone
This document discusses the growing use of telematics data in auto insurance. Telematics data enables more personalized insurance pricing and customer experiences. It can be used across the insurance value chain from pricing to claims management to additional services. While telematics is more established in the US and Italy, its use in pricing and underwriting has yet to be fully realized in most markets. As technology improves and costs decrease, the use of telematics data is expected to continue growing globally.
Telematics - The Secret to Lower Combined Ratios and a New Model for Auto Ins...Matteo Carbone
The document discusses how expanding telematics programs for auto insurance can significantly improve insurers' combined ratios and profitability. It outlines that telematics programs have the potential to lower combined ratios by 5 percentage points if offered to all policyholders through a value-added services model focused on safe driving rewards and services. The document also describes the necessary technology architecture and considerations for making such an expanded telematics program cost-effective and scalable.
The Singapore FinTech Consortium - Introduction to InsurTechFinTech Consortium
When you hear of “insurance”, the words “innovation” and “technology” would not come to mind intuitively – but they should now. At this day and age, insurance technology has the potential to affect nearly every essential insurance function, ranging from distribution methods to actuarial number crunching. InsurTech is now being implemented across every stage of the insurance value chain.
InsurTech 2016 Conference is a global gathering of the world's leading thinkers and doers in Insurance innovations and technology. It's a gathering of the planet's businesses, large and small, who are being impacted by new innovations to want to meet the demands of the insurance market.
This year, over 300 attendees will make the trip from all corners of the globe to hear from 80 industry thought leaders who will deliver the knowledge you're looking for to succeed in this arena.
InsurTech 2016 will assure that you meet the top insurance and technology professionals - leading 22 interactive and insightful sessions across all the insurtech spectrum, including:
Digital distribution channel
Blockchain
Data Analytics
Wealth Management
IoT & Telematics
Auto Tech
Health Tech & Wearables
Book your delegate ticket now for additional 15% Discount @ http://bit.ly/2bmXVxG
Shaping the right strategy, managing thebiggest risk.Until recently, the Internet of Things (IoT) was on the strategic agenda of only the largest and most progressive insurers. The IoT was largely viewed as a futuristic concept, and many insurers adopted a “wait and see” attitude.
The document discusses how the Internet of Things (IoT) will disrupt the property and casualty (P&C) insurance industry through connected devices and sensors that generate vast amounts of data. It identifies opportunities for insurers, including using data to better understand customer risks and behaviors, improving core business models, and developing new customer value propositions. Insurers need to prepare for IoT by partnering with emerging companies, developing new offerings, and using data to differentiate themselves as the industry becomes more commoditized.
Catching the Consumer Data Wave: A New Opportunity in the Insurance EcosystemCognizant
With the profusion of insurance consumer data coming online, the role of data intermediaries is emerging as a key player in the insurance ecosystem. Insurance distributors are especially well-suited to take the lead in analyzing leveraging user data and sharing insights to drive innovative product offerings and growth.
This document discusses the challenges insurance companies face in keeping up with technological advances. It notes that only 15% of insurance businesses consider themselves technologically progressive, and that outdated systems and a generational gap are hindering modernization efforts. However, improving efficiency, customer experience, fraud detection, and mobile technologies could help companies better serve customers and gain competitive advantages if they are willing to invest in new technologies like smart machines and the Internet of Things.
Technology and Innovation in Insurance– Present and Future Technology in Indi...Dr. Amarjeet Singh
Insurance companies are unique — most of their interactions with customers happen through an agent. In effect, a chunk of technology investment goes into improving agent experience. Insurers have developed systems to advise agents on products tailored for specific customers, depending on their history with the insurer and income band. Bajaj Allianz Life Insurance has a mobile app to hire agents. This helps in training, exams and licensing. It has brought on board 15,700 consultants digitally in the past year, cutting down processing time by half.
Insurers have launched mobile phone apps, making it easier for customers to transact with them. They are, slowly and surely, moving towards paperless claims as well. These are, however, only the first steps in digital transformation. Changing core systems is expensive and complicated. So, most transformation initiatives focus on improving systems of engagement with customers.
With the constant advancements and better use of digital tools in the last few years; most of these challenges seem to be addressed efficiently. While technologies such as Robotic Process Automation (RPA), Artificial Intelligence (AI), Block chain, and Advanced Analytics are working as promoters to enhance the importance of insurance, the insurers are working hard to create a more streamlined and integrated insurance system.
1. Smartphones have become the dominant internet device in the UK, used by 66% of people. The insurance industry could benefit from adopting mobile trends to better engage with customers.
2. Insurance companies should aim to be more customer-centric, engage in two-way dialogs, adopt agile models and increase awareness through personalized mobile content.
3. While insurance has traditionally been paper-based, mobile provides opportunities for customer insights, personalization, and social media engagement that companies should pursue.
Employing Telematics to Transform Workers' CompensationCognizant
Various pressures like heightened competition, rising costs and tougher regulations are compelling workers' compensation insurers to automate their systems, connect their people, processes and devices, and distill accurate, real-time information from the digital data that that encircles people, processes, organizations and devices. Telematics - technologies that integrate telecommunications and information can be the key to achieving these goals, all through a proactive, smarter, tightly connected environment.
The document discusses the key shifts underway in the insurance industry as it transitions to a digital model. Empowered consumers demanding personalized experiences, innovative competitors, and new technologies are driving insurers to move from a policy-centric model to one focused on the customer. Insurers must utilize data and analytics to develop new products that anticipate customer needs and can be purchased through any channel. They also need to build ecosystems of partners and modernize legacy systems to keep pace with these changes and remain competitive in the digital insurance landscape.
Engineering the Next-Gen Digital Claims Organisation for Australian General I...Cognizant
The document discusses potential future states for the claims organization of Australian general insurers. It notes that gradual changes like increasing climate volatility, new technologies, and changing customer demographics will reshape the insurance industry and claims processes. Five potential end states for claims organizations are described: 1) traditional claims will demand faster processing; 2) a larger percentage of claims will come from new digital risks; 3) claims processes may become "Uberized" through partnerships; 4) claims organizations will face challenges in risk management propositions; 5) humans and machines will work together to adjudicate claims using large data and computing power. The document argues that insurers must transform claims through digital technologies to concurrently improve customer experience, operational effectiveness, and efficiencies
The document discusses 10 trends in the insurance industry in 2016. Technology startups are disrupting existing business models in the industry. Most trends are technology-related and have low market penetration currently but will see mainstream adoption in coming years. Trends like increased use of IoT, big data, entry of non-traditional firms, and mHealth apps will have significant impact on insurers and customers. Other trends like peer-to-peer insurance and cyber insurance will play a larger role in the future.
This document discusses how adopting IoT can enhance insurance business operations. It outlines several ways IoT can impact the insurance industry, such as improving underwriting through access to more accurate customer data from wearables and sensors. IoT also enables better claims processing and loss prevention. However, expanding risk boundaries and gaining consumer adoption of connected devices present challenges to insurers adopting IoT. The objective is to define how new IoT data and technologies could shape innovation, operations, pricing strategies, and risk management in the insurance sector.
Optimizing the Internet of Things: Key Strategies for Commercial InsurersCognizant
The Internet of Things (IoT) is having a significant effect on both consumer-facing and commercial enterprises. At the consumer level, this can be seen in the increasing number of sensor-based smart devices flooding the marketplace. Yet the biggest economic impact is in the industrial and service-based segments, including commercial insurance. By aligning their business requirements with the capabilities of the Internet of Things, insurers can sharpen operational efficiencies, open new revenue streams, drive profitable growth and keep customers close.
This document discusses how big data is impacting the insurance industry. It covers how insurers are using big data across the insurance value chain, from underwriting to pricing to claims management and fraud detection. Insurers are able to create more comprehensive customer profiles by combining internal and external data sources. This allows for more personalized insurance offerings and pricing models like usage-based insurance. The document also provides examples of insurers that are leveraging telematics data and innovative technologies to improve their business operations and customer experience.
Blockchain technology has vast potential benefits for the insurance industry. Research shows 74% of insurance executives expect blockchain to be mainstream by 2025. Blockchain allows smart contracts to automatically pay claims using data like weather reports. It also lowers costs by streamlining processes like claims handling. Blockchain benefits both insurers through reduced costs and improved data access, and insured through better customer experience, lower premiums, and faster entry into new markets.
Being connected has become the talk of the town and insurance companies are surely one of the main interested parts in this discussion, some of them being actual promoters of change and innovation. Traditional players will have a more tough time in adapting to the new paradigm but my view is that they will have to adjust on the long term to the new rules of the game if they want to stay competitive.
Consumers are becoming more and more connected whether it is at home, at work, behind the wheel, when they engage in sports & leisure activities and so on. This is happening quite fast due to the adoption of smart devices and thus the companies have to be able to react accordingly in order to maximize value both for its clients and for itself. The surrounding environment is becoming smart and is being incorporated in the connected ecosystem thus creating new opportunities for insurance companies, opportunities which must be managed appropriately in order to maximize value. Here big data analytics plays a huge role, as the number of collected data & variables is getting higher and higher. To be precise, the discussion focuses on how companies will be able to read the data in order to identify patterns and optimize their business models by controlling loss, perfecting risk assessment and prevention etc.
Disruptive Impact of Big Data Analytics on Insurance- Capgemini Australia Poi...dipak sahoo
The document discusses how big data and analytics are disrupting the insurance industry. It outlines that:
1) Insurers are now able to access vast new sources of data like social media, wearables, connected devices and more to better understand risks and strengthen customer relationships.
2) Technologies like telematics allow insurers to access real-time driver behavior data to more accurately price and manage risk.
3) Insurers must adopt a proactive, data-driven approach to predict events rather than just react, in order to remain competitive in this new environment of abundant data and advanced analytics.
Disruptive Impact of Big Data Analytics on Insurance- Capgemini Australia Poi...
Article_Big Data
1. 26 Middle East Insurance Review July-August 2016
Cover Story – Motor
C
onsumers are forever looking
for a better deal and price is
invariably the most influen-
tial factor when it comes to buying
insurance products. For consumers,
sacrificing some of their privacy is
increasingly being seen as a fair swap,
particularly when they are rewarded
with a tailored service and a cheaper
premium.
With most consumers happy to
share data, there is considerable poten-
tial for insurers to tailor their business
models and drastically minimise the
risk of losses.
Big Data and the momentum
behind analytics
As a relatively conservative industry,
the insurance sector’s use of big-data
and analytic solutions has lagged be-
hind other industry verticals. This is
despite the presence of new market en-
trants, and considerable advancements
in other areas of insurance technology.
However, we are beginning to
witness a considerable shift in both
thinking and approach. There are a
number of examples of prominent
early-mover insurers that have already
reinforced the benefits of Big Data, and
demonstrated how technology can cre-
ate direct savings, increase revenues,
and add an additional competitive
advantage.
There is a huge amount of evidence
to demonstrate that the big-data ap-
proach is a potential game changer in
the insurance industry, whether in the
Middle East or elsewhere.
The primary benefits for
insurers and the insured
One of the notable benefits of Big Data
centres on the improvements to areas
of the insurance value chain that, due
to better analysis and understanding of
customers, risks, and claims, generate
growth in the top and bottom lines.
Quite a number of insurance carri-
ers in the west are leveraging Big Data
to analyse their customer in greater
detail. Big Data is already helping
property insurers through analysis of
customers in the “smart home” moni-
toring household devices and systems,
from smart fridges to heating or fire
alarms.
US providers, such as Liberty Mu-
tual Insurance and American Family
Insurance, are already offering dis-
count to consumers in return for data
received from their smoke alarm and
carbon monoxide monitors.
Big Data produced by customers is
also being used in other areas of the
insurance industry, such as car cover-
age where the telematics technology
monitors driving behaviour to help
cut premiums for safer drivers. This is
Big Data can help turn
motor market around
The adoption of Big Data
and telematics will be
a game changer which
can’t come soon enough
for motor insurers
in the Middle East,
says Mr Pravar Gautam of
Scope Technologies.
Motor.indd 26 1/7/2016 11:37:29 AM
2. July-August 2016 Middle East Insurance Review 27
Cover Story – Motor
an area where there is considerable potential for insurance
carriers in the Middle East.
Telematics on the rise
The telematics technology has been embraced by a number of
motor insurance carriers globally. This innovative technol-
ogy allows insurers to price motor insurance in a bespoke
manner, as drivers are monitored across a range of factors
including distance, place, time and driver behaviour.
The technology also allows for streamlining the claims
experience, and reduce fraud through accident notification
and reconstruction functionalities which can provide com-
prehensive information on the accident including location,
angle, vehicle impact zone, and impact severity.
While telematics is by no means new to the Middle East,
insurance telematics is relatively new to the region. In recent
years, we have seen telematics technology being embraced
by a number of verticals in the region including oil and gas,
construction, transport, logistics and so forth.
Similarly, looking from an insurance perspective, there’s
been a rise in awareness levels amongst the insurance com-
munity, however we are yet to see any commercial insurance
telematics programme launches in the Middle East market.
As a pilot programme, Qatar Insurance Company (QIC)
recently launched a telematics programme with a view to
enhancing road safety, while providing incentives for cus-
tomers to use the technology in Qatar.
Current estimates suggest that there are over nine million
active telematics policies across the world and this number
is growing. In the US, almost all the major insurers have
launched telematics based propositions (also known as Pay
As You Drive and Pay How You Drive policies), with some
of them being quite innovative. We see a similar pattern in
the UK as well wherein all the major multiline insurers have
a telematics programme in place.
Using technology to improve road safety and
managing risks
Road safety has been in the spotlight for some time in the
Middle East and telematics adoption along with Big Data
can help improve it. Telematics technology can be used to
improve safety education as it alters driving behaviour when
consumers focus on lowering their premiums.
Furthermore, emergency services can be summoned in
the event of an accident automatically far before a human
can contact the authorities, leading to faster response times.
The UAE’s mobile phone networks will be capable of sup-
porting the government initiatives like eCall (emergency
call), enabling vehicles to call for emergency services in-
volved in traffic accidents. This is considered to be a major
milestone for the UAE’s Telecommunications Regulatory
Authority as they aim to drastically reduce the number of
fatalities by 2021.
Rising number of accidents, growing share of luxury ve-
hicles, high claims and fraud rates are perhaps very strong
drivers for insurance telematics and Big Data to thrive in
the Middle East. There are significant first mover advantages
associated with such an adoption and this can potentially
be a game changing opportunity for the motor insurance
industry in the Middle East.
Improving the claims management experience
Big Data is being used in a number of innovative ways and
Virtual Reality (VR) technology is now available for insurers
that can dramatically speed up a crash claim case, from a
number of weeks to just a few days.
At present, loss adjusters report on the validity of the
claim and make the appropriate recommendations. The ef-
fective use of Big Data with the VR will also increase the
accuracy of decisions, by providing data and an accident
reconstruction which has previously been unavailable to
loss adjusters. Through this reconstruction users can gain a
comprehensive overview of a particular accident in real-time
and from a remote location, as well as reducing fraudulent
activity and the number of sub-contractors required for on-
site or garage assessments.
Negating barriers to entry
The use of telematics and Big Data is by no means a straight-
forward move for insurers in the region, and there are a
couple of notable barriers to implementation which must be
negotiated. For example, the much debated privacy issues are
a constant and a number of consumers fear the big brother
element of being constantly monitored makes risk profiling
far more difficult.
In addition, there are also concerns around high data
transmission costs from the cellular networks, though the
data transmission requirements are minimal, there are high
tariffs associated with mobile data in the Middle East.
The good news is, these barriers were very similar to
those of other regions in the early days of insurance telemat-
ics, and there is a clear path to overcoming such problems.
Much of this can be achieved by creating a right in-country
ecosystem, and by clearly communicating the associated
benefits to both insurers and insureds for such an adoption.
Transforming insurance
Big data analysis has fundamentally changed many areas
of day-to-day life already and the insurance industry also
looks set to be impacted globally. The insurance carriers
in the Middle East can also leverage the power of Big Data
and underlying forensics to be more targeted in the risk to
underwrite, the customers they want to serve, streamline
their claims processes, and offer value added services.
Given the growing saturation of customer segments, it is
a good time to transform insurance business models by em-
bracing technological disruption or eventually face the risk
of getting left behind by the more tech-savvy competition.
Mr Pravar Gautam is Vice-President of Sales at Scope Technologies
VR Technology can allow insurers to replay an accident second by second
(Image: Scope Technologies)
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