Emerging technologies are flooding the market; and for insurers, adapting to the speed at which they are developing and becoming more relevant might seem like drinking from a firehose. The Internet of Things, drones, wearables, driverless vehicles the capabilities and the insurance applications are growing every day. The trick to getting the most impact out of emerging technologies is to remember that not all of them are of the same importance to your own situation. Innovation for its own sake is exciting, but determining the right focus for your innovation is the best way to create value.
Figuring out where to start experimenting with emerging technologies is the first step, and claims belongs on any insurer’s short list of innovation targets. Innovation in claims can be measured through feedback from customer experience and improved claims results. Claims is also the perfect place to start small to test particular emerging technologies, then build upon that foundation to truly reinvent the claims process.
The possibilities are endless and insurers are already using emerging technologies to make groundbreaking changes to their claims operations usually to speed up the claims settlement timeframe by providing never-before-seen data with extraordinary efficiency.
To highlight just a few examples, policyholders can share a live video feed to show their insurer a complete survey of the scene of an accident or other critical details about an auto claim. Drones can make quick work of crop and livestock management for real-time automated claims filing. Preventative, proactive services can also affect claims: IoT devices can turn off electronic devices at the approach of a thunderstorm to decrease potential damage from a lightning strike. Wearables can not only record health data at the time of an accident (e.g., for use in auto or workers’ comp), an insurer can use the behavioral trends they identify to incentivize healthy behaviors with valuable rewards programs and premium savings in life insurance.
As an industry, we have so much to gain from creative uses of emerging technologies. Innovation builds on itself, and the very real enthusiasm that impactful emerging technologies generate in both customers and the insurance company itself fuels further innovation.
Putting some thought into the emerging technologies that have the most potential for your specific customers and business can yield major results. Wearables are very popular and have great potential impact in life and health insurance, while P&C insurers can get more immediate benefit from video feeds, drones and aerial imagery, and IoT devices. Creativity and prioritization in innovation will help you achieve the short-term ROI, establish a culture of innovation, and lay the groundwork for future innovation.
This blog entry has been republished with permission.
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