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<\/p>\nIn less than a decade, we went from having basic portable phones to carrying the equivalent of a NASA computer from the 90s (aka a smartphone). Digital technologies \u2014 the cloud, big data analytics, IoT \u2014 are now opening an even wider range of transformative business growth opportunities.<\/p>\n
The global pandemic catalyzed insurance sector digitization. Many great outcomes happened as a result \u2014 increased workforce productivity, digital customer servicing, and new revenue enablement. Yet these are at the bottom of the value creation pyramid.<\/p>\n
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The momentum for further industry transformation is palpable. But to seize it, leaders need to step back and ask: What do we want the future of insurance to look like?<\/em> What has connectivity brought us so far? Deep wells of big data.<\/p>\n Big data refers to the growing volumes of information obtained from various sources. This new data is so v<\/b>oluminous, v<\/b>ariable, and v<\/b>elocimetric that it has become hard or impossible to process it with traditional methods.<\/p>\n Today, big data is characterized by six Vs:<\/p>\n In a span of five years, the total volume of data produced annually increased fourfold, from 15.5 zettabytes (ZB) in 2015 to 64.2 zettabytes in 2020<\/a>. By 2030, we\u2019ll produce about 572 zettabytes of data<\/a>, which is about 10 times more data than we possess in the entire world today. For reference: one zettabyte equals one trillion gigabytes.<\/p>\n Where will this explosive data growth come from?<\/p>\n Apart from our favorite data-generating services and devices (email, smartphones, social media), more data will become available from:<\/p>\n To help you better understand how the proliferation of big data will impact consumers\u2019 lives and insurers\u2019 operations, let\u2019s picture a day in 2030.<\/b><\/p>\n Lisa wakes up to a gentle ping from her wearable health assistant. The app says she\u2019s slept well with no signs of sleep apnea. After undergoing treatment, her risk of developing heart arrhythmia has decreased significantly, so her health insurance premiums have gone down by three percent.<\/p>\n After doing a round of exercises and having a balanced breakfast, Lisa briefly checks her vitals chart, takes some supplements as per the assistant\u2019s instructions, and leaves the house for work. As she steps outside, she notices a drone hovering around the building. It must be doing the annual thermal scan inspection to check building isolation levels. If that goes well, her energy company might reduce her bill. Her smart home app has helped her optimize utility usage this summer using data from smart meters installed in the building.<\/p>\n Lisa is in the mood for driving. So her personal assistant app builds a quick route to work and reserves a vehicle rental at a nearby smart parking lot. She hops into a shared e-vehicle and her pay-as-you-drive insurance policy kicks in when she turns on the engine. Unfortunately, her premium is higher than usual. The route building app, connected to the city\u2019s intelligent transportation system, has been notified of heavy traffic, plus the driving conditions aren\u2019t great. It was raining last night and now it\u2019s foggy. The e-vehicle ADAS automatically turns on the \u201csafe\u201d driving mode to assist Lisa. She can switch it off, but that would mean another bump in the insurance rate.<\/p>\n Lisa pulls into the reserved parking spot near her work, but someone parked their car poorly. Lisa scratches it when opening the door. The car sensors immediately capture the impact, and the in-dashboard accident assistant asks Lisa to take three pictures of the rental car and two of the scratched car. After submitting the photos, the app automatically notifies the car owner, rental company, and insurer. A nearby CCTV camera captured that the other driver violated the parking rules, so Lisa\u2019s driving score won\u2019t be affected. The claim settlement will happen automatically without Lisa\u2019s involvement. She goes on about her day.<\/p>\n How far away are we from this blissful future?<\/p>\n Not too far, as most of the technologies mentioned are either in place or are rapidly coming of age. Health wearables, connected cars<\/a>, and smart parking infrastructure<\/a> are present-day solutions.<\/p>\n Intelligent transportation systems (ITS)<\/a>, integrated with mobility as a service (MaaS)<\/a> apps, are a matter of several years away. Drone-led building inspections and smart facilities management systems are also under development.<\/p>\n What\u2019s actually missing in this scenario is the greater integration of insurance products into the digital fabric of consumers\u2019 lives.<\/b><\/p>\n An automated insurance experience still remains more futuristic than practical. Why? Because insurers are somewhat reluctant to evolve at the same ultrasonic speed as other industries and adopt platform business models<\/a>.<\/p>\n Tech-wise, the prerequisites are already in place. What\u2019s left for leaders is to figure out how to assemble the available technologies into a customer-centric digital insurance experience<\/a>.<\/p>\n For centuries, prevention has been at the core of the insurance industry. Installing fire alarms, installing better door locks, using sustainable construction materials \u2014 insurers have progressively expanded the list of customer requirements to better protect themselves against unnecessary claims.<\/p>\n Newly emerged digital technologies now allow insurers to not only collect more data for risk modeling but to progressively promote more risk-averse behaviors. At the same time, new ways of processing data \u2014 big data analytics<\/a>, machine learning<\/a>, and generative AI<\/a>\u2014 can help insurers create more accurate predictive models and see how future risks change based on policyholders\u2019 actions.<\/p>\n The above combination will usher in a new era of preventive insurance (which is already beginning today) and then help the industry graduate to automated insurance experiences that are seamlessly embedded into consumers\u2019 lives. The following technologies make this transition possible.<\/p>\n Wellness wearables and medical-grade IoT devices can supply insurers with better data for predicting and even preventing clients\u2019 health risks.<\/p>\n Especially as the new generation of health devices hits the shelves<\/p>\n
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<\/div>\n\t\t\t\n\t\t\t\t\n\t\t\t\t\tAI Insurtech - Embrace the Tech Revolutionizing Insurance<\/div>\n\t\t\t\t\tEverything You Need to Know about the Insurance Industry and Artificial Intelligence<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t Download now <\/span>\n\t\t\t<\/div>\n\t\t<\/a><\/div><\/p>\nThe future of insurance: A tale of automation and prevention<\/h3>\n
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Tech components for future preventive insurance experiences<\/h2>\n
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<\/p>\nWearables and healthcare IoT devices<\/h3>\n
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