We are seeing an amazing time in the automotive industry.
As innovation with connected and autonomous vehicles reaches new heights, the auto insurance industry is also experiencing its own evolution, using technology to improve road accident and accident management, saving people time and money, and often managing stressful experiences. After accidents.
The insurance industry needs a lot of change.
In addition to poor customer experience when making claims, approximately $ 25 billion is not counted each year due to adjustment costs, fraud, delays in repair shops and more. Innovation can change that – and it is already beginning.
Insurers – like some car companies now – need to think of themselves as technology companies and get more AI and data and more seamless customer experiences. This is important as insurers are likely to have a deeper relationship with automakers once the cars are driven autonomously, with the auto company being responsible in the event of an accident.
These innovations are important in improving the customer experience, saving time and money while improving transparency, accuracy and efficiency.
AI and computer vision are one of the most influential technologies and their increasing use in insurance. Mobile phone cameras can scan cars after accidents, replace insurance adjusters in assessing collision damage, and streamline the process.
The next step, now being developed, is to not only automatically record the damage using AI and computer vision, but also estimate how much it will cost to repair the damage.
It works by having an extensive database of parts and prices where estimates are made when a photo of the loss is uploaded. It puts power in the hands of the driver or vehicle owner and takes it out of repair shops that have relied for decades on the mentality of “if the insurance company pays, we can charge as much as we want”. – As a result of bloated costs to all parties involved.
If customers could eventually do the whole process themselves – in addition to recording the damage with their phone cameras, uploading it to their insurance company’s platform and getting an instant estimate of the cost of repairs – it’s saving insurance companies time and money while minimizing the customer’s empowerment in ways we have not yet seen. Leads to premiums.
Eventually, as cars become more connected and software-based with more sensors, car repair costs will automatically increase as the car operating system communicates with the digital insurance platform during a car crash. Although not yet available, technology is rapidly moving in this direction.
Telematics that use GPS devices to track other factors such as car position, walking distances and speed have already led to individual policy pricing. Drivers who exhibit safe habits can get lower prices on insurance coverage or, under some plans, pay for insurance coverage only when their car is in use and not while sitting on the driveway.
Other data, including roadside cameras and sensors, onboard sensors and other IoT devices, as well as much of the text, such as accident reports and past claims, promises to add more information that insurance companies can leverage.
Ultimately by designing this data into a usable form that can be analyzed, AI is more powerful in determining risk profiles and setting more precise and personalized policy prices.
Privacy is also important and insurers must ensure that they have policies that protect the privacy of their customers when providing data streaming. In addition to adhering to privacy policies such as the GDPR (General Data Protection Regulation), insurers should offer benefits such as premium discounts or coupons to those who share their data.
The time is fast approaching when insurance companies will take advantage of the growing AI and data capabilities to prioritize customer experience.