Technology Creates a New Ecosystem in the Insurance Industry
Advancements in technology have been reshaping many industries at a fast clip—and the insurance industry is no exception. As the digital world rises, insurance companies stay the course on transformation. Insurtechs, AI service providers, IoT solution providers, analytics solutions, etc., create a new ecosystem in the industry. The new ecosystem enables the insurance companies to optimize their processes and customer experiences. The visual content above explains how technology can help them improve the cumbersome claims process.
Today’s Claims Processes Are Very Annoying and We All Know It
Claims processes have traditionally been non-transparent and time-consuming. However, the evolving technology could change that. What would a future claims process look like? Let’s take a car accident claim for example.
Today, when a car accident happens, you would follow the claims process along these lines:
- Contact your insurance company. You would have to provide information such as “Who was driving,” “Location and time,” “Description of the accident”
- File a police report (because most likely your insurance company would ask you to do so)
- Follow up with the insurance adjuster who your insurance company would assign. Then the adjuster would ask you for more information to determine who was at fault. And adjuster might ask you to take the car to a certified repair shop for an inspection
- After a while, the adjuster would come back to you with evaluation for an initial payment
- Accept the payment from your insurance company
In the process, you would have to submit many documents. Insurance companies typically ask for copy of insurance policy, report filed with police, copy of your driver license, repair estimate, and so on.
How Can Innovation Optimize Opaque and Cumbersome Claims Processes?
In coming years, technology will make claims process much easier and more transparent. Now the process would look like this:
- The moment an accident happens, information starts flowing from third-party infrastructure (such as street cameras, car sensors, wearable devices etc.) to your insurance company. The information includes: Accident coordinates, Point of impact, Speed of collision. Photos/videos your device recorded are also sent to the insurance company.
- Using the information collated and analyzed using advanced analytics and big data, the insurance company determines liability quickly. In other words, the insurance company can settle your claim more swiftly.
- In the meantime, options for repair shops and timelines are provided through your digital device. At the same time, a rental car is provided for you to continue your journey
- You get regular updates from the repair shop and insurer until your car is ready to be picked up.
Why Innovation Matters?
Optimizing business processes is vitally important for any kind of industry especially as digital natives become the majority in society. By 2050, digital natives are estimated to make up more than 50% of the global adult population. These digital natives prefer seamless, integrated and real-time experiences to analog and cumbersome ones. With this in mind, the insurance companies need to constantly think of innovative products and strategies to improve processes.
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