Insurance sector has been operating in a traditional fashion; however, now the industry is gradually embracing a phase of deep digital transformation. The change is happening across all entities of the value chain – insurer, re-insurer or intermediary and is going to encompass all phases of the insurance – underwriting, operations, product development, policy administration, claims management and client interaction.
Key technologies that are pushing for change include – the Cloud, Telematics, the Internet of Things, Big Data and Advanced Analytics, Artificial Intelligence, Autonomous Agents, Virtual Reality, Self-Driving Cars.
Connected Insurance – the new paradigm for the insurance business globally. This approach is based on use of sensors that collect and send data related to the status of an insured risk and on data usage across the insurance value chain.
Insurance companies are adopting this concept for Motor, Health & Life Insurance. For instance, in automobile domain, many insurers offer telemetry-based packages where actual driving information is tracked by installing devices in cars and use predictive analytics to assess the driver’s likelihood to be involved in an accident or wear & tear of car.
Similarly, for Health & Life insurance the wearable technology such as Apple watch, Garmin, Fitbit activity trackers monitor are being utilized by Health & Life insurers for assessing the risk associated with individual’s lifestyle, habits and health.
As per research by Accenture, one-third of insurers are now offering services based on the use of these devices.