Insuring the programmable world
As we move into a new phase of innovation following the disruption caused by the COVID-19 pandemic, insurers need to look ahead to determine what their technology priorities should be today. our 2022 Technical Vision The report focuses on the expansion of the digital world and the growing overlap between physical and virtual reality. One of the trends that I think is most relevant to insurers is Accenture’s vision of a programmable world.
In the report, Accenture found that 74% of global executives said the number of IoT or high-end devices deployed in their organizations has expanded significantly over the past three years. With this data in mind, insurers need to understand how their products and customer interactions can stand out in an increasingly digital reality.
If insurance leaders want to get ahead, they need to focus on functionality rather than novelty. A truly programmable world will depend on powerful technology that drives efficiency and engagement while measurably reducing cost and effort. The question is not, “How do we develop new offerings to show that we can keep up with the latest technology?” The question should be, “How do we design or adapt products and processes to deliver the greatest customer value through a programmable world?”
There are two insurance use cases that I believe will be strongly affected by innovation towards a programmable world: customer interactions and embedded commercial insurance. The implications of augmented reality (AR) and technology such as programmable materials may change the way personal lines and large commercial carriers operate.
Reimagine customer interactions
For personal line companies, AR and IoT technology provide new opportunities to personalize the customer experience and improve the claims process. We are already seeing auto insurers adopting IoT technology such as remote connected devices to offer more personalized insurance based on usage. This application sets a precedent for the rest of the industry with property insurance not far behind.
Innovation in this area is already happening with shows like Allianz Partners ‘Visi’Home, launched by the company in France in 2020. Visi’Home is a video diagnostic service that supports customers remotely in the event of damage to their home or property. Support staff can assess damage and connect customers to repair resources without having to send anyone directly. They can also initiate the damage settlement process based on the video evaluation.
With augmented reality glasses technology, for example, this process can happen in real time, possibly without the intervention of a human operator. The AI can scan for damages and make recommendations to the customer, give a list of resources or initiate a phone call to a nearby technician and let the customer know what their policy covers, all in real time.
IoT solutions and innovations that break down barriers between real-world behavior and digital data collection can also enable insurers to understand and support their customers on an increasingly personal level. computer vision, speech recognitionWearable devices enable the environment to respond to individuals as they move through it. One example featured in the Technology Vision report is a flight of stairs that flatten into a ramp as a wheelchair user approaches. Technology like this can make spaces safer, changing the ways we secure things like homes, vehicles, and small brick-and-mortar businesses.
Understanding how customers interact with the environment is also beneficial for life insurers, although data ethics and privacy need to be at the forefront of this type of innovation.
Customers are accustomed to what Tech Vision refers to as a “virtual lifestyle” during the pandemic — interacting with co-workers, friends and brands often exclusively online. The metaverse will allow us to engage in a virtual lifestyle in new ways, similar to the advent of social media that enabled us to build virtual lives in the first place. Telecom companies must focus on extending the convenience and personalization of the virtual world into customers’ everyday lives: enhancing customer well-being and simplifying interactions through new technology.
Include insurance in the organization’s operations
After publishing Insurance Technology Insight last year, I discussed how digital twins Insurance companies can assist with distribution, underwriting, operations, and claims. Through data from connected IoT and 5G devices, digital twins can provide data and context about the environment in real time.
In my previous post on the subject, I gave an example of digital twins that give deeper context about auto accident claims. I see a similar application for digital twins in commercial manufacturing and warehouse settings. Using digital twins, every piece of machinery in a factory or vehicle in a fleet can continuously generate data about hazards such as wear and tear and let workers know when equipment needs servicing.
For workers, digital twins combined with augmented reality and the Internet of Things technology could also increase safety on the job, changing the way carriers insure workers’ compensation. Another compelling example from Tech Vision: A worker moving through a factory can see an overlay of potential hazards with augmented reality glasses and machines can be remotely stopped and restarted as they pass, reducing the chance of on-the-job accidents.
However, outfitting factories and entire workforces with IoT devices will be a costly endeavor. This is where the computer is device vision come, allowing insurers and their customers to “leapfrog” forward by eliminating the need to fully outfit spaces and personnel with physical devices. Advances in machine vision make it easier to take advantage of visual data to perform diagnostics and assess risks. Instead of relying on wearable devices and embedded sensors, commercial operators can use a network of cameras to perform similar work. Companies like Basler and Qualcomm are already developing plug-and-play solutions with powerful cameras and integrated machine learning systems that perform advanced object classification and facial recognition.
By providing continuous risk-related data to both commercial and carrier customers at all times, underwriters have greater insight into risk, enabling more customized and cost-effective premiums and products. In the programmable world, insurance risk assessment can be performed in every part of an organization’s operations.
Looking forward to the future
The programmable world presents an array of opportunities for insurers to get closer to their customers and the assets they insure through direct, real-time access to data. It will also enable insurance companies to respond to customer needs faster and process claims more efficiently. In general, the programmable world may be safer and perhaps more predictable. With that in mind, insurers can consider how they can pioneer this safety-and-low-risk augmented reality.
If you would like to discuss your digital strategy and enhance your capabilities for a programmable world, Get in touch with me.
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