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November 3, 2017

Consumers have come to rely on and expect an easy and effective user experience, mostly shaped by experiences through other industries. Technology has shifted the way we buy and the way we live.

Through technology we can look for homes, book travel, find potential dating mates, have our meals delivered, book errands, buy virtually anything, and the list goes on. We have come to expect ease, smooth transactions, reliable outcomes and uninterrupted accessibility to products and services. Then we turn an eye to the insurance industry and…let’s just say there’s ample room for improvement.

This presents great opportunity for the industry to innovate, using technology to support that innovation and align itself with consumer expectations and behavioral trends. A natural starting point is the one that consumers most associate with their insurance experience—claims management—whether that is through a personal or commercial lens.

EY’s “The Future of Claims” highlights key areas that present opportunity for the claims process to evolve.

  • Advancements in technology can provide earlier warnings of severe weather; saving lives, protecting property and reducing severity of business interruption.
  • Increased use of sensors and devices in homes and businesses can reduce incidents such as fire and flooding, therefore reducing claims frequency and severity.
  • Better data on claims and insight into the cost of risk should decrease overall claims volume.
  • Automation can help pay simple claims and detect fraud, enabling human talent to focus on more complex risk and claims scenarios.
  • The use of drones can aid in risk prevention and damage inspection.

While several points above hit on technology, automation and artificial intelligence streamlining processes and taking over simple functions, it’s worthwhile to note that there is no substitute for human intelligence especially within a complex industry. Technology and humans can aid one another, creating a better experience for the consumer, but this requires a collaborative approach.

What We’re Reading

One Truth
Q&A with Jayant Khadilkar, Global Head of Analytics and Technology, TigerRisk Partners.

Insurtech investment in Q3 up 35% year over year
Q3 saw 48 deals totaling $312 million that outpaced the same period last year by about a third, which demonstrates insurtech is more than just hype.

Outdated codes make Insurtech tough challenge for regulators
Individual state insurance codes, built for a paper-driven market, do not align with insurtech business models making it difficult for regulators.

Tech Tackles Hurricane Claims
The last time a major hurricane hit the U.S., phones weren’t “smart” and drones hadn’t taken off in civilian airspace. A lot has changed since Katrina, Rita and Wilma slammed the South in 2005.

An Intelligent Claims Process
Artificial intelligence, machine learning and deep learning have huge implications to the insurance industry and are being implemented today.

2018 will be the year of blockchain for insurers
Blockchain technology can transform role of brokers enabling them to focus on risk advising, streamlined processes and the protection of data.