March at The Fintech Times is all about insurtech and its many facets. With the industry making leaps and bounds over the past few years, insurtechs are providing the much-needed disruption of the traditionally viewed, and sometimes outdated insurance industry. From innovations in technology and applications to key industries like property, auto and energy, this month we’ll be taking a look at some of the key topics in the sector and how insurance really is the one to watch.
With this in mind, we have spoken to some of the leading players in the industry to uncover how insurtech is evolving into an experience-based industry, and learn more about the impact on automation.
Ernst Renner, partner and head of US insurance at Capco, said. “The use of autonomous vehicles in the market over the next 10-20 years will position carriers to push a different type of product that will come bundled with the car rather than tied to the individual. The insurance industry is going to measure the penetration of autonomous vehicles on highways, at the point the insured is not really the driver, but the manufacturer of the software that is managing the car components is the driver. This is a critical shift to insurers thinking of who’s insured for what in these cases.
“The improved use of telematics within the auto insurance industry helps inform claims and adjust rates for individuals. Autonomous vehicles or technology within the vehicles can gather data to monitor mileage, where you’re driving, how you’re driving and based on these characteristics, insurers can inform your premiums. Older generations may not be thrilled about their driving behaviour being monitored; while younger generations are predominately embracing the fact that they can lower insurance costs if carriers monitor them.
“Younger generations do not want to be bothered by the decision to purchase insurance on a rental vehicle for example, so certain aspects of coverage are now embedded in the price of the car. Millennials are all about efficiency and having the product now with the ability to purchase the service and consume it immediately.
“Individuals that live in suburban areas are going to be less likely to buy a car as they are beginning to look at vehicles as a service (rideshare or using a rental). Folks don’t want the burden of owning a car and making the insurance payments. New emerging technology allows for more flexibility and the shift away from a traditional insurance model which will impact insurers as there will be less vehicles on the road.”
Julio Pernía Aznar, co-founder and CEO of Bdeo, said, “The automotive industry as a whole benefits from improved operations in the insurance sector. In many countries, such as Spain, it is necessary to have car insurance in order to be able to drive a vehicle. Therefore, it is essential that the underwriting processes be carried out in a simple and agile manner, and likewise in the case of claims management.
“Moreover, the fact that insurance companies are now using certain technologies, such as visual intelligence, they are seeing serious cost savings and making important contributions to sustainability. For example, thanks to technological advancements, it is no longer necessary for loss adjusters to travel to see the vehicle. Instead, policyholders can gather and submit evidence of damage, etc. via video, making it possible for the loss adjuster to remotely access the same information as if he/she were to see it in person. This not only saves costs but also contributes to sustainability by reducing the CO2 emitted by this repetitive type of travel.”
Olivier Baudoux, senior vice president of global product strategy and artificial intelligence at Mitchell, said “Insurtech organisations are disrupting the auto industry, giving policyholders more choices and providing carriers with tools to streamline claims management. Using solutions powered by advanced technologies like artificial intelligence (AI), insurers can automate key decision points in the claims process. That includes vehicle appraisals.
“With photos and videos supplied by consumers, an AI engine identifies component-level damage. This data—combined with other inputs—returns a recommendation of repair or replace. If repairable, the computer then populates individual estimate lines with recommended parts and labour costs. AI-enabled solutions can also automate the auditing process. Instead of reviewing just a handful of estimates each day, these systems can review all the estimates submitted, allowing auditors to focus on just those claims that need attention, giving them the opportunity to rapidly uncover and address issues.
“Leveraging automation in the claims process has many benefits. As McKinsey & Company point out, it improves accuracy, increases efficiency and reduces expenses. It can also boost customer satisfaction.
“Carriers must invest in these new, disruptive technologies to deliver the digital claims experience that consumers demand. Those who don’t may be left behind.”