InsuranceTech

Mantra Labs – Insurance simplified with technology!

MantraLabs, an InsurTech company that is leveraging latest technologies like Artificial Intelligence, automated chatbots and Augmented Reality is on a mission to serve the digitally savvy customer base, induce automation and reduces false claims. While MantraLabs has been helping one of India’s esteemed insurance firm Religare, they are also proud technology partners to enterprises like Shell, Ola, and Zipdial(Twitter company).

MantraLabs is a product and service based company from Bangalore are backed up by a team of 100+ experienced professionals and design-enthusiasts.

We are working to disrupt the insurance sector with its innovative, secure, scalable yet user-friendly solutions and currently focussing on making customer-centric offerings, relevant data extraction, intuitive chat platforms for insurance agents and Deep Technology Services for consistent and efficient output.

Our 3 major focus areas are:

1. Customer Experience Consulting:

In the age of the Digital Insurer, we at Mantra are obsessed with architecting an Eco-System where the user is at the center of the product. This involves mapping the user ecosystem, applying persuasion engineering, and optimizing the cross-channel experience.

2. Plug & Play Products for the Digital Insurer:

Our experience of working with one of the leading Insurance company which handles more than 1.5 million customers/month has given an insight into the products and features needed in the industry. Some of our products include

 a. InsurTech Focused Chat Solution:

Hybrid AI chat solution at a fraction of the cost which continuously keeps learning based on Agent Interactions and eventually takes over the workload resulting in significant savings on licensing & agent salary costs.

 b. Paper to Digital Document Parser:

An AI driven paper to digital document parser is able to successfully transform paper-based documentation into digital with a successful extraction of relevant consumer filled information.

 3. Deep Technology Services:

This has led to upto 7X decrease in manual processes in various aspects of the eco-system and has resulted in efficient & consistent output in process driven workflows.

The skilled Agile practitioners make sure; ideas are out to the market faster than you thought possible. From consumer-facing mobile and web applications to enterprise technologies, our experts are ready to take out on any challenge.

Security in InsurTech – Predictions for 2018

The new year is right around the corner and we want to take a look at what will be the future of InsurTech in the coming year. This year 2017 was great for InsureTech with a lot of focus on AI, ML and related technologies trying to make the insurance industry ready for the future. 2018 is going to take this forward.

The insurance industry would be in lockstep with the new technology and as the advances happen in the AI and ML, they would be picked up. Our focus for this article is around security related use cases that will help the insurance industry.

Advances in analytic technology such as Machine learning and AI are crucial in the fight against insurance fraud. To keep pace with sophisticated rings that constantly develop new scams, here are some trends to keep an eye on in 2018.

Ellen Roberson, Director of Insurance Marketing at SAS offering following insights

* Digital Policy Shopping: In 2018, millennials and other generations will continue to use mobile and online channels as a way to shop and service their policies. It’s a boon for convenience as more insurers focus on digitization to align with consumer expectations, but this digitization comes with risks, including an explosion in fraudulent claims.

* Real-time Authentication: Increasingly, authentication won’t just focus on prospects and customers. To prevent data breaches, insurers will increasing apply real-time authentication to everyone logging into their portals throughout the extended ecosystem, including brokers and agents.

* Premium Leakage: Premium leakage is defined as missing or erroneous underwriting information. Personal lines automobile insurers will face at least $29 billion in premium leakage – missing or erroneous underwriting information that undermines their rating plans.

* Health Care Fraud: State and federal authorities have reported increases in fraud, such as identity theft, fraudulent billing and deceptive sales practices.

* Agent Gaming: Premium misappropriation is the most common type of insurance fraud. Insurance agents, especially those who manage one person groups, can have access to vast amounts of their client’s funds. If they are under extreme financial pressures, they often rationalize their actions. Insurers must be vigilant in order to protect their customers and their reputations.

It is going to be an exciting year ahead. Insurance industry is on a path to making itself more technology oriented and reap the benefits of technology even more in the coming year.

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.

Growth of InsurTech in Southeast Asia

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As the economies become digitally empowered, business models are also being updated constantly to keep up with the dynamic customer expectations. Long gone are the days when the customer would worry about pleasing the insurance agents to keep in sync with their policies.

Today, InsurTech is all about digitally empowered insurance businesses and strategies and availability of online insurance solutions to customers. With information available at their fingertips, customers are now, reaping the benefits of multiple options and easy reimbursements with practically no human intervention in a few cases.

After FinTech, InsurTech had been creating a lot of excitement in the Western world. Now, the focus is shifting towards Asia. With a population of over 4.4 Billion, Asia is sure to play a huge role in the trends of growth and development. Singapore and HongKong are already betting on the Tech avatar businesses in insurance.

The Current Phase

According to a report by Ernst and Young, the trends for an InsurTech market in Southeast Asia will keep changing rapidly over the next three-to-five years pertaining to the adoption of changing technologies by businesses. The conventional business roles and models like paper record maintenance and manual verification are expected to be eradicated completely.
With over, 40% of uninsured, the middle class population in Southeast Asia. The scope of penetration for digitally charged insurance businesses through technology mediums like Smartphones is huge.

About The Expected Change

Business startups in the US and UK have attracted a lot of venture capitalists investments in the recent past. As a ripple effect of the same, South Asia also awaits to cash in on the buzz. Since, Asia, is one continent with maximum growing untapped population, the opportunity it represents is also tremendous.

Banks in financial hubs of SouthAsia, Singapore, and HongKong have already received big investments in InsurTech: DBS bank from Manulife of 1.2 Billion dollars, Citibank from AIA group 800 Million dollars and Standard Charted from Prudential (UK) 1.25 Billion dollars.

Singapore and Hongkong are providing a host of development and breeding options like incubators, insurance labs and more for InsurTech startups.

China is also seeking to build up big online platforms to provide various insurance options personal, medical, auto online. Malaysia has already started reaping the benefits of such platforms by slowly reducing the need for live agents.

The business models are completely changing. A lot of eyes are set on India, by financial investors and interested insurance companies for their growth in the world’s largest growth market.

What Does The Future Behold?

With Web becoming the business place for the insurance market, cybersecurity will play a huge role. Until completely secured businesses are established, the maximum potential of a digital business model cannot be accomplished.

Earlier, a lot of traditional businesses could not venture into Asian markets due to the regulatory risks involved. But, now, as power lies in the hands of machines, the business market is expected to explode exponentially.

How Insurance industry is leveraging the Artificial Intelligence

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For more than 100 years Insurance industry has been functioning in very similar fashion but the recent developments in technology and its adoption by the people has made the insurance industry rethink about how it goes about its business.

A study by Mercer identified Technology and Big data as one of the top 6 challenges the industry is facing followed by Industry problems of Growth and Customer Focus issues.

This should not be worrying because the industry can start solving the issues of growth and customer focus using the new technology available now. A specific branch of FinTech has been carved out to cater to insurance. It is called the InsurTech. This class of technology is being specifically focused on Insurance industry use cases.

InsurTech is about leveraging the Artificial Intelligence capabilities that are evolving and working on Big Data available from various sources. One of the biggest use cases involves using Machine Learning algorithms to mine data to get better insights about consumers, their shopping patterns, lifestyle choices from huge data sets that are now available thanks to mobile and web adoption in the world. It can be safely said that innovation starts from looking and analyzing data, and the Insurance Industry is for sure to benefit from doing it.

The individual companies are transforming the way they handle selling insurance to processing and settling claims. Artificial intelligence is being used to completely handle insurance claims, making the whole process faster, in a recent announcement Lemonade insurance demonstrated doing this in mere 3 seconds.

AI can not only help in claims processing, however, can also help in setting prices, modeling the risks associated with insurance, customer acquisition, distribution, and operations. It can solve problems across the whole value chain of the insurance industry. It does not take much to start as well. One recommended approach by MantraLabs is to start with Digital Transformation and in the process start implementing the AI related improvements in the systems and processes.

Mobile Apps, Chatbots, improved Web interfaces are some key elements to improving the customer focus issues highlighted earlier and these can be assisted by AI to provide customised experience to individuals.

In Summary, we can say that AI is already transforming the insurance industry and it’s here to stay

Insurance sector is getting renovated with these technologies

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After the entry of technologies in finance sector – FinTech. Insurance sector is ready to make a buzz about it. The term – InsurTech, a combination of words insurance and technology, as a segment is sure to gain the attention of innovators in the coming years.

Artificial Intelligence, Machine Learning and Blockchain technologies will be the hottest technologies to watch in insurance sector. All these technology interventions are helping the insurance sector to offer customer-oriented solutions managing price, risk, cost and customization.

According to the report Insurtech to take home 86 million policies by 2022. (https://www.enterpriseinnovation.net/article/insurtech-take-home-86-million-policies-2022-1956640660.

Insurance sectors are increasingly investing in latest technologies in order to improve their customer experience. The investment in AI applications has increased from $4.0 billion(2015) to $5.0 billion(2016).

Let’s take a look on benefits and use case of these technologies.

Artificial Intelligence/Machine Learning:

AI/ML can help tremendously in insurance sector with payment of premiums and claims, insurance has much to do in terms of customer engagement.

Use cases of AI/ML

  1. Claim management : Claims management can be augmented using machine learning techniques in different stages of the claim handling process. By leveraging AI and handling massive amounts of data in a short time, insurers can reduce the overall processing time.
  2. Marketing and Customer experience: Improving the customer experience by using customer data, usage and demographics.
  3. Telematics: Telematics that helps in gathering the history of speed, turning and braking patterns, distance, time of day and many such things could assist in judging drivers are driving capability and issue an insurance policy accordingly.

Blockchain:

Blockchain/Bitcoin has the great potential to bring the revolution in finance and insurance industry. Blockchain is going to change the way that data is processed and the way investments are handled.

The potential use cases of blockchain, i.e. Distributed Ledger Technology (‘DLT’), anonymised processing, immutable, encryption.

1 . Decentralized cloud storage across the network.

2. HR Management – Resume Authentication for job hunters. Background verification without using third party consultancies.

3. Supply Chain Management & Transparency – Banks and insurers can create performance management programs to increase engagement

4. Vehicle Leasing system – Complex vehicle supply chain management can be done using Blockchain and smart contracts

Takeaway:

Let’s take this opportunity to explore new dimensions of the business and let robotics take the command. Its time to say good – bye to the age- old processes and welcome to the whole new world of technologies in insurance.

What is Blockchain Technology?

“Bitcoin is just one example of something that uses a blockchain. Cryptocurrencies are just one example of decentralized technologies. And now that the Internet is big enough and diverse enough, I think we will see different flavors of decentralized technologies and blockchains. I think decentralized networks will be the next huge wave in technology. The blockchain allows our smart devices to speak to each other better and faster.” Melanie Swan, author of Blockchain: Blueprint for a New Economy by Swan, Melanie (2015) Paperback

Blockchain is now making the biggest revolution in the finance industry. As a technologist, we should evaluate and apply the concept of Blockchain without thinking Cryptocurrency. It can unveil many possibilities and can lead to innovations. Cryptocurrency is becoming a distraction to the possibilities of blockchain as people have started using terminologies vice-versa.

What is blockchain technology and why it is safe?

Blockchain provides a protocol for building a shared, replicated and distributed online ledger network. Each participant in this blockchain network maintains their own copy of that database, or collection of organized information.

If you simply put,  blockchain is made up of a series of blocks of data that are securely tied together. Since all records are connected to each other, they are entrenched. It is impossible to modify or alter a previous record without changing the copy of every participant in the blockchain.

There are some disruptions too!

Contracts, transactions, and ledger are the defining structures which set the boundaries of our economic, legal and political systems. Today these involve people and corruption. With blockchain, contracts can be embedded in digital codes, stored in shared databases, protected from tampering.

Blockchain may be disruptive, but the question is if it’s too disruptive for its own good.

Although blockchain is one of the hottest and intriguing technologies currently in the market but it comes with its own challenges. Many business leaders and industrialists are skeptical about blockchain.

Let’s see what are those skeptics:

  • It will be hard for established business in the industry where blockchain will push uncomfortable transparency which can lead to price corrections and change in business models. It can be so much disruption that it can lead to the foundation of new technologies.
  • Adoption problem of Blockchain technology
  • Time-consuming: Blockchain-based transactions can only complete when all parties update their respective ledgers – which is a very time-consuming process.

Eight reasons to be skeptical about blockchain.

InsurTech: Present and Future of Insurance Technology

Insurers need to spin the technology that offers their customers with more efficient, optimized and relevant policies. The ones that could be customized could be fed with data from a wearable/mobile device or the ones that are applicable for just an hour. With such customer focus initiatives, they yet need to achieve core business objectives like price and operational efficiency and compliance to stringent regulations. Could the Insurtech meet up the expectations? Could technology lend a helping hand? Let’s explore how the insurance vertical is evolving with the latest technology and what its future is –

The Present of InsurTech

The insurance firms are under immense pressure of reorganizing their house – customized policies, risk mitigation strategies, real-time analytics, instant claim settlement, sensors, drones and augmented reality (AR) apps are playing a significant role. So, what are the technologies adopted by the firms? Let’s take a closer look –

Robo-Advisory Services

Robo-Advisors have seen a broad adoption across insurance sectors. Unlike olden days when hiring a financial advisor was a dream for many individuals, with Robo-advisors people of the low-income group could use DIY advisory for their financial portfolio. Should you opt for all critical disease cover or only a few? Should buying an integrated policy be beneficial or an individual one is some of the questions that could be answered via Robo-Advisory Services.

Policies via Sensors, Detectors, and Telematics

Sensors, Detectors connected via the internet could send early signals of smoke/radiations to the rescue services, helping in minimizing the damages. Also, Telematics like monitoring automobile speed, the behavior of a rash driver could assist in making a clear judgment of claim policies for individuals and insurance firm. Hence while IoTs and interconnected network could be a boom in offering customized policies, these minuscule are taking insurance services to the next step.

The Future of InsurTech

Could technologies like Blockchain, Augmented Reality, Virtual Reality change the world sees insurance sector? Would they bring in the exotic flavors of policies? Only time can tell, for now, let’s explore how these technologies could be handy in insurance sector?

Blockchain

A distributed ledger technology has the potential to ease out fraud detection and risk prevention as per a report from EY. The report also highlights that blockchain is efficient in establishing transparent and customer focussed claims building trust and loyalty for the insurance firms.

Augmented or Virtual Reality

Just imagine driving in stormy weather, an AR app helps you define the road/lane border so that you do not bombard a tree or a car in your parallel path. Or how about a 3D modeling and simulations help customers in making insurance claims easier and faster? Or how about before you go for the home insurance a simulation helps you pinpoint all the areas under insurance rather than reading the lengthy document? It all is a possibility with AR and VR technologies.

With the evolution of technologies, the secret is to be adaptable to change. @Mantra Labs we believe in this, and hence one of our esteemed clients Religare is using our InsurTech solutions in Post-sale, pre-claim, post-claim and renewal processes. It helps in providing customers with transparent and intuitive services that is robust and secured for businesses. A win-win for all.

Reference Links:

https://assets.kpmg.com/content/dam/kpmg/xx/pdf/2016/10/how-augmented-and-virtual-reality-changing-insurance-landscape.pdf

https://www.realexpayments.com/blog/augmented-reality-insurance-businesses/

IOT in Insurance Sector: Home, Auto and Health Insurance

Internet Of Things is helping the Insurance Industry as well. Based on the reports we have read it is all set to transform the insurance industry in flexible and exciting ways. Last month Accenture insurance blog stated that 39% have already launched or are piloting connected home or connected building initiatives that use the Internet of Things, and 44% consider connected devices to be a driver of future insurance revenue growth.

Future insurance is set to be completely transformed because of IoT. There are already some insurance companies that have adopted IoT and Insurance Tech such as Bajaj Allianz, ICICI Lombard, HDFC life.

 

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Image Source: iamwire

In this article we plan to discuss how IoT is helping in home insurance,  auto insurance, and health insurance businesses.

Health Insurance:

Wearable devices such as fitness bands such as FitBit are helping people, especially elderly, to track their health details constantly. This information can further help doctors treating the patients requiring immediate medical attention. Insurance companies, at the same time, can reduce their claims by offering incentives to their policyholders to use these kinds of devices.

Home Insurance:

Sensors, Detectors connected via the internet could send early signals of smoke/radiations to the rescue services, helping in minimizing the damages. Information derived from inter-connected smart devices at home can also be utilized by insurance companies to determine the safety maintained at home. In the first place, smart devices used to keep an eye on their home while they are away. This would decrease the unfortunate incidences of theft or burglary and save people from losing their precious assets as well. Eventually, it would also bring down the claims raised by households.

Auto Insurance:

Telematics like monitoring automobile speed, the behavior of a rash driver could assist in making a clear judgment of claim policies for individuals and insurance firm.

Hence while IoTs and interconnected network could be a boom in offering policies, these minuscule are taking insurance services to the next step.A huge amount of data generated by the IoT devices can be used for predictions, understanding of the market, customers etc, that will help in distributions the policies in a very effective manner as well as a great customer satisfactions.