Technology is changing the world, relieving us of routine tasks. Computer vision, bots, telematics, and other technologies have come to auto insurance. Until now, insurance has been a routine, time-consuming operation. People of the new century are used to solving most problems with a smartphone. This fact has pushed the insurance market to use IT technologies intended to simplify and speed up the process of obtaining a policy.
Let’s consider auto insurance software solutions and trends that are beginning to penetrate our lives and make it much easier.
Telematics
Telematics projects are one of the most popular and high-profile trends in the auto industry. The device or app collects all the information about the use of the car. For example, the frequency of car use, speeding, accident occurrence, and so on. Based on this data, the agents calculate a flexible insurance rate for each specific case.
Drivers who use telematics can get a discount if they have a history of careful driving.
Big Data – an alternative to an insurance agent
Insurance has always been based on data analysis. Accident statistics and the policyholder’s personal information group people into different risk categories. Thus, insurance companies can optimize the cost of payment.
The introduction of big data will improve the efficiency of processes that need mental analysis. Namely – to quickly check the history of the insured, to automate the processing of claims, to provide clients with better services. Automation can save up to 50% of employees’ time and allow them to focus on profitable tasks.
Big Data help computerize many manual processes, reducing application processing and administration costs. In a competitive environment, this will result in lower insurance costs, which will attract new
customers.
Blockchain
Along with best bitcoin loans, blockchain is a trendy technology that is being implemented in almost all spheres of life and business. This solution ensures the secure storage of personal information. Blockchain eliminates cases of fraud, standardizes work processes, and so on.
The use of blockchain for the insurance industry makes it more reliable and transparent for customers.
Blockchain opens up completely new possibilities in insurance and significantly modernizes this industry:
- Smart contracts help provide automatic insurance payouts. They imply a decrease in risks and generally improve the quality of customer service.
- The efficiency of blockchain systems makes markets decentralized, fully digital, and more secure. The technology involves reducing the processing time of requests and the cost of transactions.
- The rejection of intermediaries and the transparency of public platforms increases the trust in the system. The technology significantly increases the speed of work and reduces its cost.
- The high speed of transaction processing makes it easier to choose the individual cost of services. This fact makes the market more flexible.
- New types of insurance and joint economy are emerging and developing. For instance, P2P insurance, microinsurance, point (parametric) insurance, and others.
- The availability of insurance services is increasing and more and more users are gaining access to the market.
Internet of Things (IoT) to reduce risks
The Internet of Things allows getting more information about the object of insurance. So, U.S. insurance companies have found that data from car sensors help predict the likelihood of an accident and sometimes prevent it.
Thanks to IoT, insurers get even more data, which makes possible not only statistical (after the fact), but also predictive analytics. In this way, you can predict the probability of events and simulate potential risks. Thanks to such a thorough analysis of insurance objects, new insurance products, services, methods of work appear. It also contributes to the development of the industry as a whole.
Computer vision for damage assessment
In the USA, with the help of computer vision, insurers have learned to assess the damage after accidents. The computer analyzes a snapshot of the incident. Based on the details (the shape of the body, the wheels, the location of the car parts in the photo), it determines how seriously the car was damaged. And then another algorithm calculates the amount of insurance payments.
Machine learning
When forming insurance rates, insurers use the underwriting method. This is a calculation of the probability of an insured event and an assessment of the potential risk. The decision is made based on the analysis of many parameters. This includes information about the insured, the object of insurance, statistics on the insured events, and so on. Machine learning models allow us to take into account all the input data. This allows us to accurately determine the price of the insurance contract for each client.
Conclusion
It is likely that in a few years, special devices and mobile apps will take over the entire insurance process. And they will become not just a way to get a policy, but a trusted advisor and helper in everything to do with insurance and other financial services.