The global motor insurance market is projected to reach the 880 billion dollar mark this year. An industry this vast and global is always bound to be constantly shifting. In an industry that is at least partially based on shrewd assessments of risk and statistical calculations of likely profit, there will always be a technological influence on proceedings. In recent years the term InsurTech has been thrown about to describe technological innovation in the insurance sector. Here are four examples of InsurTech that are having a significant impact on insurance companies.
Dashcams
The development and spread of small digital cameras has revolutionized the automobile insurance world by enabling the widespread use of dashcams. Dashcam’s record the road when driving. They can provide crucial evidence of wrongdoing on the road or insurance scams involving cars. In Russia, insurance scams were so widespread that dashcams became essential kit for almost every law-abiding driver. Their ubiquity in the Russian Federation has led to an explosion in bizarre video documentation on the roads.
Telematic Proof
Telemetry information is any data collected from an instrument. In the auto insurance world, it refers to data collected about how, where, and when a person is driving their vehicle. Insurance companies are making use of telemetry data to provide proof regarding an accident and also tailor prices so that safer drivers receive more favorable insurance quotes. Telemetry data can be matched up with footage from CCTV or a dashcam to provide concrete evidence of the location, time, and conditions in which an accident was suffered.
Companies like KBD car insurance Quebec offer better rates for drivers that accept telematic monitoring applications or devices in their cars. Although telemetry collection devices in the form of black-box recorders used to be the standard way of monitoring driving habits, phone-based applications can now largely record the same data and maintain connectivity at a much lower cost to the insuring company.
AI
Artificial Intelligence is being used by insurance companies around the globe to calculate accurate repair estimates without having to rely upon human experts. This allows companies to speed up the claims process and save money but might anger a few automobile experts that see their work taken on by barely tangible strings of the algorithmic equation.
Big Data
Because auto insurance underwriting is reliant upon the assessment of historical information in order to calculate risk and costs, the insurance market is a perfect fit for the use of big data. Big data essentially refers to any large, diverse dataset that can only be efficiently analyzed and collected digitally. It allows insurance companies to build incredibly detailed demographic risk assessments and offer very safe pricing in order to maintain their profit margins. Big data can also be used to create smarter, more flexible insurance plans where risk is continuously reassessed. Ultimately, the use of big data reduces the risk of offering insurance, which in theory means that insurance companies should be able to offer more favorable pricing to customers.
