Home and Auto Insurance Industry: Disruptions (Asia)
The disruptions impacting the auto and home insurance industry in Asia are big data technology, autonomous vehicles, AI-driven technologies, selling of insurance online, blockchain technology, API technology, and cloud services technology. All of these pioneering technologies are disrupting and driving the digitization of the home and auto insurance sectors in Asia.
Big Data Technology
- Big data technology is a big repository of data from a lot of clients, this data is analyzed with a special infrastructure to collect and integrate all data so that it can be used effectively.
- It is a disruption in the auto insurance sector because this tech allows insurance companies to get an advantage over their competitors. Insurers using it will gain insights that can be used to improve underwriting processes and expand access to new customer segments.
- The Asian company Ant Financial developed the 'Car Insurance Score' tool, which uses big data technology to assess driver risk on the basis of the vehicle owner’s profession, credit history, spending habits, driving habits, and other data, so insurance companies can offer more specific insurance plans to their clients.
- An autonomous car is a vehicle that can guide itself without human conduction. Autonomous cars use various kinds of technologies; they may use sensors and other equipment to avoid collisions and/or have the ability to use a range of technology known as augmented reality, where a vehicle displays information to drivers in new and innovative ways.
- With the use of self-driven tech, accident reduction has been significant, which results in less auto insurance plan payouts. Asian companies have changed their business models to offer clients insurance plans covering accidents involving self-driving cars.
- Tokio Marine & Nichido Fire Insurance, for example, will add a special clause, free of charge, to cover accidents involving self-driving cars to its automobile insurance policies in Japan. This new tech is forcing Asian insurance companies to change their business models.
- AI (artificial intelligence) is a novel technology. In the course of a car accident, AI tech (through deep-learning and image recognition) can take pertinent photos and analyze them to determine any damage. After a series of processes, the system can finish damage determination within a few seconds.
- Many companies are now exploring remote loss determination with the technology. It is disrupting the Asian industry because, with this tech, insurance companies don't have to trust in the "human evaluator" to determine the loss and the money to pay to the client, all is done remotely and with a minimal percentage of error.
- Automation reduces customers' wait time and raises their satisfaction level. It can help insurance companies, especially those who are newly established, to quickly enhance their claims processes.
- Blockchain is a distributed ledger system that records transactions across a large network of computers. The information can accurately track real-time car operating data, driving records and driving paths. When an accident occurs, blockchain technology can record the accident time, place, and handling time after the accident.
- With the use of this technology, fraud can be prevented successfully. Even though this technology just began to be used in the insurance sector, it is an important innovation to have trusted data about the relevant accidents.
- The Zhong An company is an Asian company that is evolving the insurance industry, mainly with fraud prevention, using blockchain technology. The tech is reducing reliance on intermediaries involved in a claim when an accident occurs.
- Insurance companies have to establish ownership of insured property and then track the transfer of ownership. Ownership records of properties (homes) can be recorded in blockchain distributed ledgers, insurers can reliably and inexpensively track details and the transaction history of just about any asset of value.
Sale of Auto Insurance Online
- Insurance products can now be completed online and through mobile apps. Major insurance plans that offer this modality in Asia are primarily in the car and medical insurance sectors.
- The online offering of insurance plans is particularly new in the Asian insurance sector. This digitization of services and operations management results in an automatic, simplifying, and digitally smart offering.
- This new modality of insurance sales is affecting the insurance sector positively. Tencent, the Asian company behind the WeChat app, is positively impacting other customer sectors like millennials and is a pioneer in the online insurance sector.
- API (application programming interfaces) technology allows a company to interact with third parties, opening opportunities for the company to offer new possibilities to its customers.
- In the Asian insurance sector, this tech is a pioneer in the sale of home, travel, and car insurance; providing real-time access to insurance services including in the areas of quotes, policy management, and insurance offerings.
- AXA Insurance launched in 2017 and is a pioneer in the Asian region. The company's API tech helps it use Insurance-as-a-Service strategies. Additionally, third-party APIs are used by insurance companies checking customer data to prevent abuse and fraud.
Cloud Service Technology
- Cloud computing allows individuals and companies to access services, such as storage and analytics, through the internet without having to build their own data centers.
- Used jointly with other technologies, like big data and deep-learning image recognition, cloud services allow insurance companies to have more access to the details of an accident because the photos taken are immediately uploaded to the cloud and can be accessed by the company and, in some cases, by the client.
- Asian companies like Ping An significantly reduce the operational costs of claims assessment as well as the likelihood of paying claims that repair shops determine to be questionable or fraudulent.