Category: InsurTech

The benefits of adopting telematics in auto insurance

The Benefits Of Adopting Telematics In Auto Insurance

April 25, 2023

Telematics systems have become mainstream throughout the automotive industry. Many experts feel they have the potential to completely revolutionise and transform the sector. Based on reports by Bloomberg NEF, close to 1.2 billion cars were plying in the year 2022, while this could reach a staggering 1.5 billion vehicles by the year 2039 as per estimates. This naturally calls for a revamped auto insurance mechanism, which takes things like driver behavior into account. This has been an offshoot of the usage-based insurance model in the automotive insurance space. Due to the continual increase in car volumes, the global auto sector is poised to touch a staggering USD$1.4 trillion in revenues by the year 2040. This will be backed by stringent regulations worldwide which make insurance coverage compulsory, along with systems for tracking and penalties, in order to scale up auto insurance penetration throughout owners. In a more traditional context, insurance companies usually emphasised upon things like the vehicle age, location, and motor vehicle reports for working out the premiums and risks.  However, telematics systems are now enabling the evaluation of driving habits with a view towards more effective estimates of risks and pricing. These programs are increasingly driven by technologies like IoT (Internet of Things) and data analytics, thereby becoming disruptors for the segment in recent years. If you look at it objectively, North America is already the biggest market for telematics-driven insurance, with close to a whopping 22 million policies active from top companies. The global market for telematics systems in insurance should touch USD$6.2 billion in 2025, indicating 22.7% in CAGR (compounded annual growth rate) as per Grand View Research reports. What does this tell us? Telematics is here to stay.  What is telematics and how is it relevant in insurance? UBI (usage-based interface) or telematics fuses informatics and telecommunications, which is the foundation for data processing, with an aim towards retrieval and storage.  Insurers put tracking devices into vehicles which receive, store, and send telemetry information/data on the onboard diagnostics of the vehicle, enabling wireless communication. Vehicle-based data is collected, including the location, speed, harsh braking, idle time, and fuel consumption. This is given on a real-time basis to car owners and insurance companies via tracking devices or smartphone apps. What are the biggest advantages of telematics? Some of the top advantages of telematics systems in vehicles include the following:  Insured policyholders can lower their premium costs through the adoption of safe driving practices/habits.  Insurance companies can better analyse risks of possible accidents and predict the possibilities of claims in the future.  Insurance companies can provide rewards and value-added incentives for scaling up customer retention, loyalty, and satisfaction.  Insurance companies have a much fairer and more effective method of risk and premium estimation with telematics.  Telematics offers valid and accurate data regarding the vehicle functions and driver behavior, which ensure actionable insights for processing claims. It also contributes towards reducing any fraudulent claims or losses.  Insurance companies are seeing the evolution of models like distance-based/pay how you drive/pay as you drive/control your drive insurance options.  Dashboard cameras in tandem with telematics can help insurers gain better insights on the reasons behind accidents and get more knowledge of the same.  Telematics in insurance removes several hurdles throughout the supply chain, right from underwriting and claims management to serving customers.  These devices also lead to higher awareness and alertness amongst drivers who wish to improve their driving behavior, patterns, and scores. Hence, it may contribute towards lower accidents on the road.  These technologies may contribute greatly towards lowering crime rates globally.  Telematics can thus be a major boon in the auto insurance space, with huge potential not just for personal vehicle insurance, but also for fleets and logistics players. It offers more transparency in premium and risk evaluation, while lowering the chances of accidents and other mishaps. It will keep evolving gradually throughout the world, until it becomes an accepted form of auto insurance. At the moment, it is steadily being recognised and implemented by insurance companies and should have its boom moment in the near future. FAQs How can telematics be used in auto insurance? Auto insurance companies can use telematics to determine the driving behavior and vehicle operations of policyholders, using actionable data for evaluating risks and premiums. Telematics can also offer higher insights on mishaps and accidents, thereby helping with claims management.  What are the benefits of using telematics in auto insurance? Telematics helps in accurately estimating risks of policyholders and their premiums. Good drivers get incentivised with lower premiums and rewards. At the same time, fraudulent claims and losses are minimised with this system.  What are the challenges of implementing telematics in auto insurance? Some of the challenges include data privacy and other regulations, since location-based information is received, stored, and shared. Other challenges include technological integration and awareness-building.  Are there any examples of successful implementation of telematics in auto insurance? Some examples of telematics-based auto insurance models include control your drive, pay as you drive, pay how you drive, and distance-based insurance.

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Digital Asset Management - SharePoint Syntex to the Rescue

Hackathon Diaries #6-Digital Asset Management

April 20, 2023

The Hackathon Diaries are back, and they’re better than ever. Are you ready for an exhilarating ride? The 6th edition of Hackathon Diaries is here, and we’re taking on a challenge that’s sure to get your heart racing: digital asset management using Sharepoint Syntex. With its advanced capabilities, Syntex is transforming the way businesses manage their valuable digital assets. But the journey to mastering this technology won’t be easy. We’ll need to put our skills to the test and unleash our creativity to solve complex problems. So, get ready to witness innovation in action as we dive deep into this exciting new project. Digital Asset Management Digital assets are a critical component of any modern business, but managing them can be a daunting task. That’s where SharePoint Syntex comes in – an AI-powered engine that can transform the way organizations manage their digital assets. With Syntex, you can create a powerful Digital Asset Library system without any coding efforts, making it easy for your team to store, access, and analyse your most valuable information. By capturing the information in your business documents and transforming that information into working knowledge, Syntex enables your organisation to make quick data analyses and insights. It can extract key data points, classify documents, and even automate workflows with its advanced capabilities – all with just a few clicks. So why wait? Start unlocking the power of your digital assets today with Syntex and take your business to the next level. The Techie Meet the mastermind behind the magic – Aniruddho Kodali, the developer who brought this project to life. Problem Statement In today’s fast-paced business world, data is king. But with the sheer volume of information available, finding what you need can feel like searching for a needle in a haystack. The average worker spends a staggering 20% of their time searching for information, leading to lost productivity and missed opportunities.  But what if there was a solution that could cut that time by as much as 35%? Imagine a world where knowledge was easily searchable, accessible, and organized. That’s the challenge we’re taking on with our latest project: digital asset management using Sharepoint Syntex. We believe that with the right tools, managing overwhelming amounts of data can be a breeze. And with Sharepoint Syntex, we’re taking that belief to the next level. Our goal is to create a system that makes it easy for employees to find the information they need when they require it. Business Solution Syntex Content AI – Digital Asset Management In today’s fast-paced business world, information is king. But with the sheer volume of content available, managing it all can feel like an impossible task. That’s where Syntex Content AI for Digital Asset Management comes in – an innovative solution that transforms how content is created, processed, and discovered. By utilising the latest advancements in cloud and AI technology, Syntex empowers people and automates workflows at scale. It automatically reads, tags, and indexes high volumes of content, making it easy to find and connect information where it’s needed – in search, in applications, and as reusable knowledge. But Syntex is more than just a search engine. It manages your content throughout its lifecycle, providing robust analytics, security, and automated retention. And with features like auto classification, zero-touch information management, and reporting and visualisation, It modernises the way businesses approach information management and governance. Impacts Are you tired of your business spending countless hours and resources managing overwhelming amounts of content? Syntex Content AI is here to revolutionise the way you approach digital asset management – and save you money in the process. With Syntex’s advanced content classification and curation capabilities, businesses can save between $1.2 million to $3.3 million, reducing the need for costly professional services and streamlining content management. But that’s not all – Syntex’s improved discovery capabilities can save your business between $42 million to $127 million by making it easier to find and connect the information you need, when you need it. And with reduced reliance on legacy tools and professional services, businesses can save between $864,482 to $1.2 million – freeing up resources for other critical projects. With Syntex Content AI, businesses can unlock the power of their content and save money in the process. Don’t let inefficient content management hold you back – it’s time to discover the new possibilities of the future. 

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Exploring the potential of analytics in improving insurance claims processing and customer experience

Exploring The Potential Of Analytics In Improving Insurance claims processing and customer experience

April 20, 2023

Insurance claim processing is a tedious job, at least from a conventional perspective. At the same time, customer experience is another pain point for most insurers, not just with regard to claims processing and other procedures, but also several accompanying aspects. The digital evolution and transformation of insurers have led to several positives, including higher accuracy, efficiency, and speed for almost every division. Highly advanced predictive and data analytics enable insurance companies to take decisions driven majorly by data. AI has already empowered insurers with the necessary insights for discovering new opportunities, tackling threats, and ensuring better productivity at multiple levels. Data analytics has thoroughly transformed every aspect of the process, right from customer communication and engagement, to claims, applications, underwriting, and also pricing. With proper data visualisation and analytics, underwriting procedures are automated and made more accurate by insurance companies. They thus identify customer risks through advanced predictive modelling and other tools. At the same time, this enables fixing premiums or pricing for at-risk customers based on prevailing guidelines and slabs of the insurance company. The insurance industry has only scratched the surface of the vast analytics-driven possibilities for future progress and prosperity. Here is a closer look at how it enables improved claims processing and enhanced customer experiences in turn. Claims Processing & Other Aspects- How They Can Be Improved Data analytics can contribute greatly towards various aspects, right from fraud detection to smooth processing of claims. Here are some of them: Automated Claim Payments- Many insurance companies often require extensive inspections and assessments of damages for claims. This leads to longer wait times for customers and a drop in their satisfaction levels. Retention rates may also go down as a result. Data analytics and other AI tools can help in streamlining claim payments based on an accurate and speedy assessment of damages. Claim Development Modeling- Predictive modelling is what insurance companies can use for building a more accurate and automatic system for understanding how much any claim will eventually cost. This is necessary, since claim amounts may sometimes change from the initial filing till the complete payment. The prediction of the final claim is important since it has a direct impact on the company’s financial statements. Companies can view which policies get more customers and their segmentation, along with claim trends, and trending reasons for the same. Detecting Fraudulent Claims- Fraud detection is another area where insurance companies witness the benefits of deploying data analytics. These claims are expensive for companies and they do not often have resources for the investigation of each and every one. Accurate and effective predictive modelling can help in prioritising and identifying any fraudulent activity for action. Insurers will find the age group from where most frauds are reported. Insurance companies can accurately detect fraudulent activity and plug the gaps to minimise their losses, without hampering customer experiences through challenging claims which are innocent or genuine. Intelligent management of cases- Insurance claims processing becomes a breeze with automated and intelligent management of individual cases. Automated and digital customer claim management and journeys with AI and analytics help greatly in lowering manual processes and touch-points, while enabling higher satisfaction and retention with a quicker claims process. Better front and back-office processes- Data analytics and other AI tools can help greatly in transforming both front and back-office systems. These include calculation, underwriting, loss value estimation, reporting, verification of damage or repair estimates, invoicing, and so on. Better customer communication- AI can be used to fully automate customer communication throughout every stage of the claim process, thereby enhancing customer experience greatly. Hence, analytics can enhance the entire spectrum of processing claims and the whole customer journey/experience associated with it. AI can help in inferring claim possibilities including litigation, losses, fraud, and so on. Algorithms can also categorise or segment claims based on complexity and several important attributes. AI can also support the optimal handling of claims in several cases. Hence, it is fast becoming imperative for insurance companies globally today. FAQs How can analytics solutions help insurance companies detect and prevent fraud? Analytics solutions can help insurance companies identify fraudulent behaviour patterns and activities, narrow them down, and detect such transactions swiftly before or after completion. This helps insurance companies plug gaps and take swift action.  How does it improve customer experience? Analytics and big data have a huge role to play in enhancing customer experience through automated and timely communication, quicker processing of claims through automated verification and assessment, and also intelligent management of cases.  How do insurance companies protect customer data collected by IoT devices? Insurance companies take several measures to safeguard data gathered from IoT devices. These include encryption of data and there are several types that companies may pick from. Insurers also emphasise proper data storage and governance under applicable regulations.  What is the potential impact of analytics on insurance premiums and pricing? Analytics has a profound impact on pricing and premiums. It helps insurance companies estimate customer risks and then automate premium/pricing calculations accordingly. Data is analysed from several sources in order to gather insights on segment-wise risks and the best possible pricing for the same, keeping the policy type and other aspects in mind.

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How Regtech is beneficial for financial services

How Regtech Can Be Beneficial For Financial Services

November 28, 2022

The Regtech solutions trend has caught on throughout the financial services sector and how! Here’s understanding this phenomenon and what it can do for any financial institution.  What Is Regtech And Why Is It Important?  What is Regtech? If you dig deeper, then you will find how companies are not just emphasizing consumer-facing operational aspects, but also back-end elements. With regulatory pressures on governance and data compliance, Regtech is steadily building a strong use case for itself. More fintech and financial institution partnerships could happen in the near future for leveraging the same.  Regtech compliance tools are the need of the hour for most financial institutions. Regulatory technology has built a firm base in the fintech space for overcoming several hurdles including litigation, regulations, regulatory remediation, and more. A majority of Regtech tools make use of SaaS and open APIs for helping financial institutions solve a multitude of issues, helping manage governance and compliance, while lowering regulatory risks at the same time.  Challenges Faced By Financial Institutions Before venturing into Regtech requirements and other Regtech certification needs at an implementation-level, challenges faced by several financial institutions should be addressed. They face problems like the following:  Issues in risk management.  Consistent addition of new Government regulations.  Modifications and circulars related to existing rules/regulations.  Higher overheads for solution production and deployment with regard to compliance.  Higher penalties for non-compliance.  Legacy system issues and insufficient levels of digitization or automation for tackling these aspects.  Incompatibility or integration issues of systems.  This is where Regtech comes into play as a viable solution for the future.  Advantages – How Regtech Is Helping FIs To Manage Risks Regtech solutions are ensuring the following benefits for financial institutions:  Internal accountability and control for compliance assessments, risk-based data, effective policies, analysis, and management of procedures.  Compliance with regulations- Financial institutions can easily adhere to regulatory needs in a more efficient manner. They cover periodic regulations while ensuring solutions for the same.  Lowering the time required for onboarding customers.  Better fraud identification and adjusting swiftly to newer regulations.  Enhancing data analytics and collection.  Simplification of data management, complying with safety and privacy regulations.  Ensuring suitable access, storage, and processing of data for financial institutions.  More transparent and effective regulatory filings.  Reporting in real-time along with improving decision-making.  New governance implementation and reframing regulations.  Enhanced risk and fraud management- Solutions for risk management ensure automated assessment of credit for understanding optimal limits and also exposure aspects. Collaboration with Regtech solutions will help in generating higher savings on costs and also higher investment returns, in addition to taking care of compliance and regulatory requirements.  Support for risk-data aggregation, taking care of reporting liquidity, data modeling, analyzing scenarios, and stress test forecasting.  Real-time ML/AI based prevention of frauds, real-time tracking of compliance, AML screening in real-time, and more for KYC procedures.  Data standardization with cloud computing, predictive analytics, governance at the board level, provenance audit, and end-to-end regulatory reporting via automation.  These are some segments where Regtech solutions can play a vital role in helping financial institutions shift towards a new era of better governance and regulatory compliance.

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Sentiment Analysis

How Sentiment Analysis Can Drive Insurance Industry

July 11, 2022

Sentiment analysis in insurance is emerging as a potent tool for companies in multifarious ways. Insurance companies have tons of unstructured information that they have at hand.  Following a suitable sentiment analytics process may help insurers enhance retention of policyholders and also in the identification of opportunities pertaining to up-selling and cross-selling. Sentiment analytics have already turned into a vital aspect of strategies pertaining to customer feedback for companies of diverse sizes. Sentiment analytics in insurance fuse Machine Learning (ML) and Natural Language Processing (NLP) along with deep-text analytics for illuminating intrinsic nuances of texts.  Sentiments can be translated more easily and analyzed seamlessly than expressions. The sentiment analytics process is also known as opinion mining.  Customer data is unstructured and comes in several forms including claim data, voice messages, surveys, emails, social media posts. The entire system is tailored not only to analyze feedback and its nature, but also to put it against the right context. Benefits of Sentiment Analytics Insurers can reap multiple benefits from suitable sentiment analysis procedures. Here’s looking at some of them: 1. Detecting Fraud Reports indicate how insurers lose millions annually on account of fraud. These are estimated at anywhere around 5-10% of total compensation payouts by insurers in a year at least.  These are claims that flew under the radar. However, predictive analytics and other tools can help detect the same. A sentimental analysis dataset will help insurance companies track and assess insurance settlement and claim patterns.  It will help in quicker decision-making on the basis of crucial parameters or key performance indicators. This will help in arresting fraudulent claims and enhance the insurer’s earnings.  Text analytics also enables better decision-making through dashboards and access to other necessary data. 2. Customer Understanding  Social media sentiment analysis will help in the classification and identification of customer interactions on the basis of parameters like the services/products being provided, the marketing platforms or channels that are used, the operations in place and so on.  What sentiment analysis does is help insurers understand the voices of their customers.  It fosters superior customer understanding above everything else. Social media datasets will help in the identification of specific aspects concerning any product, process, or service.  Whenever this analysis is implemented for social media comments, it helps in clearly delineating trends in the industry and perceptions of companies along with enabling timely alerts on any reputation related issues as well. 3. Managing Claims The analysis of complaints and claims is another natural segment for using such datasets. Complaints may be automatically identified and classified on the basis of the service, product and other parameters.  This enables passing them onto suitable agents/departments in order to ensure swift action on the same. Relating those to real world Sentiment analysis in insurance reduces costs, combats fraudulent claims, helps insurance companies understand patterns, trends and customer preferences, and also lowers overall workload and the time taken to respond to customer issues.  Simultaneously, social media sentiment analysis helps in enhancing satisfaction levels of both employees and clients, while enhancing client retention, brand-building, recommendations.  It also goes a long way towards lowering indirect expenditure. Sentiment analytics can help insurance companies keep leveraging unstructured information for identification of revenue-enhancing opportunities and industry/customer trends.  Although analytics is not perfect as of yet, it is continually evolving towards the same. In this case, the sustained focus on a specific domain (insurance) can help in enhancing the overall accuracy levels as well. Indus Net Technologies offers an array of solutions tailored towards the needs of insurance companies and the industry at large, right from cutting-edge analytics and other technological tools to back-end automation, risk profiling, customizable analytics, and modernization of legacy applications.  Having worked on diverse task requirements for insurers over the years, INT has the ability to tailor industry and company-specific solutions that harness the power of data, free up company resources, and ultimately boost company revenues and growth alike. About the author: Dipak Singh is a thought leader and data cruncher, currently, he heads the Analytics Wings at INT. To know more do check out his LinkedIn profile here.

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Risk Assessment In The Insurance Industry

Risk Assessment In The Insurance Industry

June 23, 2022

Risk assessment in insurance is not something new; it serves as the bedrock for insurance companies in terms of analyzing risks linked to every individual policy. Before delving deeper into the transformation of these legacy processes, it is important to know what insurance company risk assessment stands for.  The procedure is also known as underwriting and is a method deployed by insurance companies for the evaluation and assessment of risks attached to insurance policies.  This helps in calculating the right premium amount for the insured individual. There are several risks linked to insurance including morbidity and mortality rate fluctuations, disasters, etc. Hence, the insurance risk assessment process goes through several methodologies including stress testing, parametric, simulation, stochastic models, benchmarking, deterministic and many others.  Risk management is the fulcrum of the industry, with insurance companies accounting for every possible factor to create high and low risk profiles for policy holders.  The risk level also influences the premiums on these policies. Insurance companies also collect massive data on prospective policy holders and the objects that are being insured.  Data mining-based statistical tools and frameworks are now being leveraged for working out risk levels. How Technology Is Changing The Game When it comes to business insurance risk assessment, several reports confirm that most companies are now looking at big data analytics and other insurance risk assessment software for augmenting their underwriting systems. When it comes to underwriting, the following steps are usually covered: With this premise at the forefront, here is how predictive analytics is transforming the entire picture: Predictive modeling enables the creation of models with mathematical/statistical tools. These illuminate future performance of policies, offering insurers a detailed analysis of risks involved in the process through inherent data patterns.  These models can be neatly added to applications. How It Benefits The Whole Insurance Ecosystem Predictive and data analytics enable superior risk assessment while helping underwriters get automated outcomes for better business decisions. Insurance companies can leverage predictive modeling and analytics for more effectiveness and consistency in the process.  This will not only help them lower costs, but also enhance overall client experiences while ensuring sizable business development simultaneously. Insurance firms will benefit from lower processing time for applications as well. At the same time, insurance companies can forecast risks well in advance. This equates to faster identification of potential problem-areas and mitigating the same in advance to save money as well.  Risk assessment can also help them customize their policy offerings for customers based on a better understanding of intrinsic factors and risk levels. When it comes to risk assessment and other analytics, Indus Net Technologies(INT) offers varied solutions for insurers.  It ensures cutting-edge big data analytics enabling decision making and better performance across metrics like customer retention, cross-selling/up-selling, claims and fraud. INT ensures efficient processes and outcomes for insurers, helping with the following: Other solutions include m-commerce/e-commerce portals, API integration, lead-capturing portals, renewal, claims and quote & buy mobile apps, core insurance processing mechanism, and portals for managing brokers.  All in all, INT. assumes the role of an end-to-end solution, while taking care of risk assessment in insurance with advanced analytics-driven solutions. About the author: Dipak Singh is a thought leader and data cruncher. Currently, he heads the Analytics Wings at INT. To know more do check out his LinkedIn profile here.

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Insurtech- The Power To Make ESG Happen

April 8, 2022

ESG (environmental, social, and governance) criteria are a set of standards that are creating a splash across boardrooms. It suffices to say that ESG will play a defining role in future operations across all business sectors and insurance is no exception. In this context, insurtech can play a pivotal part in driving seamless ESG adoption. The interesting bit here is that many societal components have an equally crucial role in spurring ESG adoption. It is but natural that insurers are steadily taking up technology as a pillar in this regard. Insurtech And ESG- How They Are Linked The insurtech space could accelerate ESG for the entire insurance industry according to experts like the founding partner at Eos Venture Partners, Sam Evans. Insurance is what offers security against mishaps, and unfortunate natural disasters enhance financial strength and offer protection in case of any death or injury to policyholders. It also plays a part in enhancing the overall well-being of policyholders. Several core components in ESG are also connected to data and technological tools, which are naturally the prerogative of the insurtech space. Right from enhancing healthcare/wellbeing quality to higher engagement with un/underserved communities to filling up the gaps in protection and coming up with metric-driven solutions or tapping into big data, insurtech is expected to do its bit in ensuring the biggest premise or principle of all- Fill up the gap in protection. Aspects Worth Noting How Insurtech Can Help Signing Off Even Deloitte has stated how insurance companies are increasingly appointing chief sustainability officers in response to ESG demands while investing more in insurtech solutions for better metrics in line with the same. The ESG concept is being more efficiently integrated into the entire underwriting journey. Scoring systems, tools for analysis, and other insurtech products may help in driving ESG-compatible development of insurance products. Right from the industrial, household, and automotive sectors to healthcare, there is a diverse scope of application.

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