Co-Founder, Board member, Insurtech Thought Leader, Keynote speaker and writer on insurance innovation
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The auto insurer of the future will apply extensively AI to a constant flow of #telematics data‼️ Do you agree with our assessment of the impact? 🔴 game changer 🟢 impacted 🔵 marginal impact 🔴Product management “The design and maintenance of a telematics product that provides more frequent interaction with policyholders is completely new compared to the traditional insurance model, which uses static rating features. The days of the “one-policy-fits-all” approach to auto insurance are over.” 🔴 Marketing “As these programs become more innovative, shifting how we market the value proposition to customers will be vital. Marketing activities need to focus on customer engagement through improved communication and transparency.” 🔴Policy acquisition and servicing “Telematics data is changing the entire customer journey from issuing a quote to the policy contract, how the policy is serviced, including billing, and finally, the impact on renewals.” 🔴 Underwriting and risk management “Risk analysis, inspection, monitoring and loss control—typically core and addressed at the policy level in middle and large commercial risks—can be performed at scale on the personal auto book, applying algorithms to the telematics data” 🔴 Sales and distribution “telematics offers new ways to acquire customers, such as using the driving score at point of sale.”“Pre-existing data allows companies to offer the most accurate rating/discount upfront, replacing the need to capture driving data during the introductory period. The insight collected about policyholders and their risks has the potential to unlock further opportunities for upselling and cross-selling.” 🔴 Claims management “Claims activity is ripe for a deep redesign fueled by using telematics-based insights to detect crashes and proactively reach out to policyholders, assessing the crash dynamic and the overall anti-fraud process.” 🔴 Support functions. “From an IT, organizational and data management perspective, the amount of data received with telematics is new for most insurance companies, and the skills required will be broader than the traditional insurance skillset. Investing in the right infrastructure, data foundation and people is vital because nothing happens in telematics without data. The better a carrier is at managing this dataset throughout the customer value chain, the greater their chances of success—as this fuels the pricing models that determine if a discount is warranted, powers the customer experiences, impacts future strategies and innovations, and ultimately unlocks the larger benefits.” #iotinsobs #insurtech