*This article was originally published on prooV’s website on 18/03/18. prooV merged with QAssure to become 1TX in July 2022.
The insurance industry has long been due for a tech revolution, and over the last few years, advancements in artificial intelligence and data processing have finally tipped the scales.
Innovation in insurance is at an all-time high, and the next decade will see a transformation in how the entire industry operates, from more accurate and less frustrating claims processes to ground-breaking fraud prevention techniques.
Below are a few of the latest InsurTech innovations that are set to revolutionize various aspects of the industry.
Intelligent Data Analysis to Fight Fraud
In November of 2017, Allstate announced a partnership with information tech startup Carpe Data that could transform fraud detection and ultimately lead to more accurate claims processing.
Through a mixture of proprietary algorithms and AI-driven analyses, Carpe Data gathers and examines material on claimants from a variety of online sources such as social media and email. The collected information then allows Carpe Data’s analytical models to more accurately identify fraudulent claims.
The icing on the cake is that Carpe Data’s analysis is not limited to only negative information. In most cases, it will also help to reinforce valid claims, leading to lower overall claim investigation costs.
New Technologies Require New Insurance Solutions
By their very nature, unmanned aerial vehicles, better known as drones, occupy a unique place in the aviation industry.
As they grow in popularity and reduce in price, more and more companies and individuals have decided to take advantage of the technology’s many benefits. Some insurance companies have even taken to using drones for individual claim adjustment and large-scale surveying.
Considering the newfound accessibility of drones, the big question is: How can insurance companies take advantage of the rising drone insurance demand in the face of volatile user competence, while still offering reasonable rates?
The InsurTech startup SkyWatch.AI’s answer is to take advantage of the connected nature of most drones. In conjunction with one of the biggest aviation insurers in the country, Starr Companies, SkyWatch’s tech is powering usage-based drone insurance.
Through a unique safety score, which is calculated through an advanced AI analysis of drone sensory data, SkyWatch can more accurately predict a particular pilot’s flight competence and safety. Higher scores equal more reasonable insurance premiums and happier customers.
Smart Homes Mean Smarter Insurance
Over the last couple of years, insurance companies have begun to recognize the value of innovative and intelligent tech tools for safeguarding customers and reducing the number of potential claims.
As a result, partnerships between smart home technology companies and insurance providers have increased, and consumers are going to reap the benefits.
The scope of these partnerships covers everything from home security to virtual assistants.
On the home security end of the spectrum, State Farm recently partnered with IoT security company Canary, and Generali Group has begun working with the Google-owned Nest Labs to help customers embrace the Nest Protect intelligent smoke and carbon monoxide detector.
As far as virtual assistants go, insurance giants Allstate and Farmers have each developed apps for Amazon’s Echo that aid in finding and checking insurance coverage.
Using connected safety technology offers a two-fold opportunity for insurance companies. First, these systems can offer consumers a wide array of protective and convenience services, improving their safety, increasing their coverage, and preventing hazards.
The second big opportunity also greatly benefits conscientious insurance customers. Most of these smart home systems allow for greater data collection points. As a result, insurance companies can analyze information about customers’ habits, creating a more accurate profile of their potential claimant’s behavior.
Ultimately, this will lead to more accurate underwriting, which in turn means more affordable coverage for safer customers.
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