Digital Ventures already shared the insurance business overview in the digital age from the Digitizing Insurance report. To gain a clearer picture of the transformation, we will discuss the use of Robotics and the Internet of Things. We believe that they will be a significant driver that bring the insurance sector into the digital era. Also, we will talk about real case studies in this blog.
Robotics service in the insurance business
Robotics often remind us of the machinery. In fact, Robotics also involves the software that many views that they play an important role in the insurance business in the digital era. Examples of the technologies are Robotic Process Automation (RPA), Software Robotics and Cognitive Automation which also includes Artificial Intelligence.
RPA technology and Cognitive Automation can be applied to assist the whole value chain of the insurance business. This ranges from product design, insurance policy establishment, insurance sales as well as claims and transactions management. Below are some application concepts.
- Services-through-Software. Up until today, the conventional insurance business is a Services-through-labor. In the future, Robotics will decrease processes that use human labor, especially those that can be automated. Examples are the document distribution, claim requests as well as insurance sales and claim payments. Staffs who are currently working in these positions will become system operators who enhance the flow of transactions.
- Product Design will become Customer Centers. At present, insurance policies are designed using market analysis and macro trends. As a result, products often don’t match the client’s needs, especially with health and life insurances. The use of Robotics and AI will incorporate the client’s personal information analysis prior to considering the conditions that match their requirements. Finally, they are able to deliver products that are more customer-centric.
Internet of Things: Connecting human and digital insurance
Internet of Things (IoT) can be applied to digital insurance for its ability to connect human and digital data. This includes data collection and conveying various commands. Moreover, IoT can bring about innovative services for the insurance sector.
- New coverage and claim solutions. Data and the use of IoT will lead to new user experiences. For instance, health data can serve as basic information when considering insurance policies to cover the client’s risks. These health data derives for a pool of data. Another example in the claiming process is with a smartwatch that can track abnormal heartbeat. Not only can it signal for assistance, but it can also send claiming documents to the insurance company to receive instant coverage.
- A reward system acquired from consumer behavior data collected by wearables. Not only can IoT data be used to calculate insurance policies for new clients, but it can be applied to the reward system for existing clients. Today, some companies offer wearable devices that can collect clients’ health routines. If clients are exercising, data will show that they are health conscious. Afterward, points are accumulated to become discounts for next year’s premium. Clients receive both discounts and coverage while insurance firms can better evaluate the risk factors.
Vitality: A tech-savvy insurance business in the digital age
To gain a better perspective of the digital age insurance, we will share real case studies from Vitality, an insurance company established in the United Kingdom since 2015. Vitality is known for the Vitality Optimizer system. An additional program that offers discounts and other benefits calculated from data collected by the Internet of Things.
Vitality Optimizer utilizes client behavior records from the IoT to design reward systems that encourage long-term healthcare. The points derived from the client’s activities which is transformed into premium discounts. Also, the proper reward is offered depending on the client’s behavior and needs. For example, exercise enthusiasts may be offered fitness centers or healthy food restaurants discounts.
As seen above, technology will transform the insurance business from the product design to the process of providing coverage. Also, it will further develop engagement between the business and clients in the long run. In the near future, if these technologies prevail, conventional style insurance shall lessen its role. Digital Ventures have more stories on the various aspects of Digitizing Insurance. Follow us at http://dv.co.th/cvc.php.