Technology Trends Remodeling the Motor Insurance Sector in India

Over the last five years, the Indian banking and insurance sector has undergone many technological changes. There has been a sudden sprout of new-age technology applications. All modes of services and sales are moving towards complete digitization and automation. The insurance sector in India is no exception from this movement.

Insurance is no longer a brick-and-mortar game. It has successfully transitioned from being a traditional product to a digitized one. You no longer need to visit the bank branch, wait in a long line, only to fill up a physical 10-page document of which you have no understanding. Nowadays, you can not only buy but compare and renew different types of insurance plans from the best insurance companies in India at the click of a button. If you are looking for a better option, you can do the same process mentioned above on-the-go with your smartphone! If you do not believe this, visit Coverfox and let us handle the rest.

Earlier, the insurance industry was heavily dominated by agents and intermediaries who would conduct all modes of point of sales and servicing. The services came at the cost of a commission that was borne by the policy buyer. There have also been multiple instances of agents misleading consumers for the purpose of personal gain. Last but not least, the customer service being rendered by the insurers was time-consuming and less effective. These three factors had pretty much crippled the insurance industry and the customers for a prolonged period of time.

In today’s day and age, consumers are more technologically aware and prefer digital modes of transactions and services. Generation Y and Z are very well known for consuming large amounts of data. They prefer a wide range of customization options and product variants. Such can be delivered only via the online mode.

Not to mention the fact the COVID-19 pandemic has led to multiple lockdown measures. This has resulted in a greater dependence on digitization. The mode of physically going to a bank branch or meeting an insurance agent carries a lot of risk of infection. This must be avoided at all costs because now you can do the same thing online.

Which Technologies are Reshaping the Indian Insurance Industry?

Two of the most prominent technologies that have taken insurance as well as most of the industries by storm is Artificial Intelligence (AI) and the Internet of Things (IoT). Since most of the digital sectors in India have migrated to cloud computing, it has become easier for existing as well as new fintech/insurtech/online aggregators to adapt and implement the trends offered by the Internet of Things (IoT) and Artificial Intelligence (AI). In fact, many neo insurers have completely taken a digital approach to sell motor insurance and providing online customer service for the same (You can even file a claim online from the website.)

Let us look at the technologies that are having a huge impact on the motor insurance industry in India for 2020.

The Rise of Artificial Intelligence (AI)

Although this is a very complex application of technology, it pervades almost every aspect of your digital life and environment. Artificial intelligence is the system of intelligence possessed by a machine that enables it to interact intuitively with other applications and humans. The system has the ability to engage and manipulate the intelligence of a human being or animal with complete accuracy and precision.

You, as a consumer make multiple choices on a daily basis, go through different websites and products in order to get your customized selection. What if we told you that the entire customer journey has been recommended and designed by an artificially intelligent program? Yes, it is true. The recommendation engine determines the optimum products based on your web engagement data.

In the world of motor insurance, the entire process of underwriting and visual inspection has been automated by means of artificial intelligence. In addition, the artificial intelligence engine generates huge amounts of data that is further utilized to measure and improve the performance of the system over the long run. Plus, there are lesser dependencies on manual labor; which leads to lesser chances of human error.

Applied Machine Learning (ML)

As the name suggests, machine learning is a subset of Artificial Intelligence (AI) that involves building, training and creating algorithms without the need for explicit programming. In short, the software learns from experience and improves upon itself from the data given to it.

One of the best applications of machine learning programming is the function of automation. With applied machine learning, insurance companies can automatically process claims online with minimal human intervention. The documents that are uploaded in the cloud are automatically recognized by pre-trained machine learning models. The models further categorize the risk associated with a claim and suggest the further course of action, and administers the policy accordingly.

With image recognition, the extent of vehicle damage is easily determined and requires no need for a surveyor. Through predictive modeling, unauthorized transactions are reported with pinpoint accuracy, thereby minimizing fraud.

Telematics and Geospatial Data

This is perhaps one of the latest developments to enter the Indian motor insurance industry. It has become highly popular among the top general insurers (both private and public). With respect to automobiles, telematics involves complete telemetry. Telemetry is the process of recording, measuring, and transmitting the data of specific instruments inside of a motor vehicle. Geospatial information is related to mapping and location; more commonly made popular by google maps

Usually, the insurer will install the device inside your motor vehicle that will regularly measure the telematics and deliver performance reports on a regular basis. Details such as kilometers traveled, speed, idle time, acceleration, fuel consumption, engine health, location, braking, vehicle faults, breakdowns, tyre strength are measured under telemetrics. This information is highly valuable as it provides an in-depth and thorough insight into the usage of a car.

Based on the date mentioned above, an insurer can adequately determine the type of insurance plan and premium payment amount for a motor vehicle.

Evolution of Chatbots

Chatbots have become one of the most popular tools for engaging actively with customers, especially from a website. You can not only talk to a customer executive but also get your solutions delivered in a matter of minutes. Plus, chatbots are completely automated and ingest huge amounts of data on a daily basis that helps its machine learning model to predict customer selection. Advanced chatbots even facilitate the full transaction rights of a customer or help them understand the claims process. Overall, chatbots help in engaging with a customer intuitively and help save the cost of hiring unnecessary customer service executives. This reduces the operating cost of the insurance company.

In Simple Words,

Technological advancement in the insurance industry has only benefited this sector. There has been a completely positive environment with respect to the adoption and acceptance of digitization in the general insurance industry. If you want to experience this live, visit Coverfox and let our super-smart algorithm handle the rest.

Technology Trends Remodels the Motor Insurance Sector in India