As we move into a new phase of innovation following the disruption caused by the COVID-19 pandemic, insurers must look to the future and determine their technology priorities today.our 2022 Technology Vision This report focuses on the expansion of the digital world and the increasing overlap between physical and virtual reality. One of the trends that I think is most relevant to insurance companies is Accenture’s vision for a programmable world.
In a report, Accenture found that 74% of global executives say the number of IoT or edge devices deployed within their organizations has increased significantly over the past three years. With that data in mind, insurers need to understand how their products and customer interactions stand out in an increasingly digital reality.
If insurance industry leaders want to move forward, they need to focus on functionality rather than novelty. A truly programmable world relies on robust technology that drives efficiency and engagement while measurably reducing cost and effort. The question is not, “How do we develop new products to show that we can keep up with the latest technology?” The question should be, “How do we design or adapt our products and processes to deliver the most value to our customers through a programmable world?”
There are two insurance use cases that I think will be greatly impacted by innovation for a programmable world. It’s customer interaction and built-in commercial insurance. The impact of technologies such as augmented reality (AR) and programmable materials could change the way personal lines and large private carriers do business.
Rethink customer interactions
For private carriers, AR and IoT technologies offer new opportunities to personalize customer experiences and improve billing processes. We’re already seeing auto insurance companies adopting his IoT technology, such as connected telematics devices, to offer more personalized, usage-based insurance. This application sets a precedent for the rest of the property and casualty industry, and property and casualty insurance is not far behind.
Innovation in this area is already occurring with products such as: Visi’Home by Allianz PartnersVisi’Home is a video diagnostic service that remotely assists customers in the event of damage to their home or property. Support agents can assess damage and connect customers to repair resources without having to send someone in person. You can also start the compensation process based on the video evaluation.
For example, using AR glasses technology, this process could be performed in real time without the intervention of a human agent. AI can scan for damage and provide recommendations to customers, providing a list of resources, calling nearby technicians, and letting customers know what their insurance covers.
IoT solutions and innovations that break down the barrier between real-world behavior and digital data collection also have the potential to enable insurers to understand and support customers on an increasingly personal level. computer vision, voice recognition, and wearables can enable the environment to respond to individuals as they move through it. One example given in the Technology Vision report is a set of stairs that flatten into a slope as a wheelchair user approaches. Technology like this could make spaces safer and change the way we insure homes, cars, small brick-and-mortar businesses, and more.
Understanding how customers interact with the environment is also valuable for life insurance companies, but data ethics and privacy must be paramount with this type of innovation.
During the pandemic, customers have become accustomed to what Tech Vision calls a “virtual lifestyle,” interacting with colleagues, friends, and brands exclusively online. Metaverse allows us to participate in virtual lifestyles in new ways. This is similar to the rise of social media, which first made it possible to create a virtual life. Telcos must focus on extending the convenience and personalization of the virtual world into customers’ daily lives, increasing customer happiness and streamlining interactions through new technologies.
Incorporate insurance into business operations
After announcing the Insurance Technology Vision last year, I discussed how to make the Insurance Technology Vision a reality. digital twin We can assist insurance companies with sales, underwriting, operations, and billing. Through data from IoT and 5G connected devices, digital twins can provide data and context about the environment in real time.
In our previous post on this topic, we provided an example of a digital twin that provides deeper context for a car accident claim. Similar applications of digital twins can be seen in commercial manufacturing and warehouse settings. Using a digital twin, each machine and vehicle in a fleet of machines in a factory can continuously generate data about risks such as wear and tear, letting employees know when equipment needs repair.
For workers, the combination of digital twins and AR and IoT technologies will also improve job safety and change the way airlines underwrite workers’ compensation insurance. Another compelling example of Tech Vision. A worker moving through a factory can use his AR glasses to see an overlay of potential hazards and remotely stop or restart machinery as he passes, helping to prevent work-related accidents. The possibility decreases.
However, equipping your entire factory and workforce with IoT hardware can be an expensive endeavor.This is a computer machine vision This allows insurers and their customers to “leap ahead” by eliminating the need to fully outfit spaces and individuals with physical hardware. Advances in machine vision make it easier to leverage visual data to perform diagnostics and assess risk. Commercial operators can use networks of cameras to perform similar tasks, rather than relying on wearables or integrated sensors. Companies such as Basler and Qualcomm have already developed plug-and-play solutions with powerful cameras and integrated machine learning systems that perform advanced object classification and facial recognition.
With continuous risk-related data now available to both commercial customers and carriers at all times, insurers are able to gain much greater insight into their risks and create more customized and cost-effective Insurance premiums and products will be available. In a programmable world, insurance risk assessment can be integrated into every part of an organization’s operations.
Looking to the future
The programmable world offers many opportunities for insurers to get closer to their customers and the assets they insure through more direct, real-time access to data. It also allows insurance companies to respond more quickly to customer needs and process claims more efficiently. Overall, a programmable world could be a safer, and perhaps more predictable, world. With that in mind, insurers can think about how they can become pioneers of this safety-enhanced, risk-mitigated reality.
Want to discuss your digital strategy and strengthening your capabilities for a programmable world? please contact me.
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