InsurTechs are in the house, ladies and gentlemen. The business approach is shifting from broad-based product-centric to customer-centric.
To stay in the game, old-school insurers have no option left but to surrender to those who know how to tackle the technological elephant in the room (including the elephant that Hadoop shows; the big data!). This is what the affected stakeholders are feeling in these disruptive waves.
Let’s see some examples of how AI-powered technologies namely Robotic Process Automation, Natural language processing, Image recognition, Speech/Text conversion, Internet of Things (IoT) have taken the onus to change the cumbersome headache into a pleasant experience. According to U.S. Property & Casualty Insurance Market Report, auto losses got hiked by 13% in 2016.
The PC insurance industry recorded a net underwriting loss of around USD 5 billion during the first half of 2017, up by about 2.5 times the loss reported a year earlier. Personalised premiums have been yielded on account of better underwriting in automobile insurance.
Historically the make and the model of the automobile have been key factors in determining premiums. Through Telematics, a device fitted in your car gives real-time feedback on the driving behaviour which eventually is aligned with the premium you are to pay. Insurers are offering customized policies to reward customers with favourable habits and disciplined lifestyle while penalizing the unfavourable and undisciplined ones. Read more from bbntimes.com…
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