Posts on Nov 2017

How drones are helping the Insurance Sector

The Internet of Things is an area of InsurTech that is driving innovation, primarily with telemetry and wearables for auto, health and home insurance. Carriers are eager to capitalize for lower premiums and more personalized policies for customers.

The number of internet-connected devices and sensors is projected to reach 50 billion by 2020, which will have a significant impact on the availability of real-time information that insurers can use for better pricing/underwriting.

Lately, Drones are playing the important role when it comes to the insurance sector. For example, hurricanes Harvey and Irma, drones were flying overhead and capture the images to speed up the insurance process.

Drones are the state-of-the-art equipment which saves money, saves the homeowner, and just looks so much more professional. How can a drone inspection help you when you have roof damage?

Vince Lefton, CEO and Co-Founder at bulldogadjusters curated a list of the top five ways how drones are helping the insurance industry in roof and house damage.

1. Safety: Your roof damage will be safer for your public adjuster and your insurance adjuster. One of the most dangerous parts of the job is going up onto high areas and sites like roofs.

2. Faster: A roof damage inspection that normally takes close to forty-five minutes or more now takes only about ten minutes using aerial equipment.
3. Cost Reduction and accurate settlements: Investing in a drone is often cheaper in the long run than the use of personnel to climb onto the roof. Speaking from the perspective of the businesses insurance policy, it is also much cheaper to not have employees going up onto the roof when roof damage is present. As you can imagine, insurance premiums are cut in half when a drone is used instead of an employee. The cost per inspection decreases and the time it takes to complete an inspection with more quality data on the roof damage is also lessened. In-depth, zoomed in, and birds-eye view roof photographs can be taken that leads to more accurate settlements.
4. Professionalism: Using drones is more professional than using human capital to inspect potentially dangerous roof damage. Given the benefits above, drones differentiate the public adjuster from competitors. Homeowners are impressed when a public adjuster is aware of the safety concerns and technological benefits that behoove the final outcome of the homeowner’s roof damage.
5. Steep Roofs: Where many public adjusters and insurance adjusters will not go, but drones can. Imagine extremely steep roofs. While heavy winds and torrential rain cause roof damage, inspections are difficult and dangerous to perform with the traditional methods. Drones can easily perform these types of inspections and in a third of the time that insurance adjusters and other public adjusters take.

Today, we live in an era of rapid technological revolution which is changing the way insurers prepare for. Drones are one of the many new tools with which Insurance sector can be transformed and plays an important part to save money and lives.

 

InsurTech: 5 benefits of technologies in Insurance Sector

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InsurTech is a buzzword nowadays where a variety of technologies are set to transform the traditional insurance industry. Many Insurers have already transformed themselves digitally to offer convenience, security, choice, and comparison to their customers.

Internet of Things (IoT), telematics, drones, the blockchain, smart contracts, and artificial intelligence (AI) are providing new ways to measure, control, and price risk, engage with customers, reduce cost, improve efficiency and increase customer experience.
Here are five ways Insurers can stay ahead in the market and successfully fulfill high customer expectations.

 

1. Lower Insurance rates:

 – Fitness apps or wearable devices:

Getting fit has many perks. Some of the fitness apps like Wysa and wearable devices help you maintain your weight, food habits, boost your energy and mood. And most importantly they can help you save a huge amount of your health insurance cost. Various insurance providers are tapping into wearable devices to keep updating their customers to stay in shape and healthy and offering them many discounts and benefits if customers meet a required fitness goals.

– Self Driving car:

Self Driving cars will one day lower life insurance rates.  Since road deaths are a significant percentage of deaths in the entire world, any slight downward change will ultimately lead to lower deaths and hence life insurance claims.

 

2. Fraud Prevention:

Fraud comes in all shapes and sizes. Insurance fraud costs companies billions of dollars per year across the globe.  Insurance companies should establish a technology framework, tap into advanced automation and analytics, and take steps to prevent it.

– Digital Signature Technology:

Digital signature technology is without a doubt lowering fake insurance account activation and hence a fraud. for example, the case of claims on a said date when insurance is purchased after accident can be brought down with digital signatures verifying the purchase to be after the incident.

– Data analytics:

The technology involves data mining tools and quantitive analysis. Data analytics can be applied to detect fraud. Predictive analytics helps improve the fraud detection process, helping prevent claims payouts. Analytics on claims and fraud transactions helps enhance risk management

 

3. Lower underwriting cost:

The number of internet-connected devices and sensors is projected to reach 50 billion by 2020, which will have a significant impact on the availability of real-time information that insurers can use for better pricing/underwriting. Drones are satellites on steroids at least as far as underwriting is concerned. Satellites have dramatically changed how home insurance policies are written due to fire. All sorts of things to come from drone footage underwriting: Houses that you can’t even see due to trees.

 

4. Billing efficiency:

Billing systems are not only integrated but now can accept varied forms of payments allowing ultimate flexibility to the customer and thereby making the billing systems efficient. The automated systems can inform and remind customers of approaching due dates for premiums thereby lowering unintentional defaults.

 

5. Specialized insurance:

Each type of insurance is different from the other and the factors that are suited to one are not suited to the other. This requires the insurance agents to have specialized knowledge and the internet helps. however, Machine learning is vitally important here. It has the capability to learn and analyze billions of patterns and identify suitable underwriting clauses as well as identify specific customised plans for the customers based on the data provided. This can change the customer perception of the insurance company and provide an engaged customer who is likely to stay longer.

Emerging technologies have produced various opportunities for Insurers to walk with today’s world, provide seamless customer experience to their customers and create new services and products.

Thanks you Scott W Johnson, owner at WholeVsTermLifeInsurance.com for providing your valuable information on how technologies are helping Insurance industry.