Internet of vehicles, location analysis, drone survey, auto insurance automatic claims, robot process automation ... these will constitute the future of property insurance.
On a global scale, technological development is reshaping the business model of property insurance industry, and whether or not to master and apply cutting-edge insurance technology will become the key to the success of property insurance companies.
Why is property insurance the most technical type of insurance?
Referring to the two dimensions of industry popularity and market performance, CB Insights divides the future development trend of property insurance into four categories: necessary, experimental, threatening and transitional.
Four major trends
0 1
inexorable trend
Inevitable trend refers to the development trend that has been widely understood and adopted by the industry and consumers. For this development trend, insurance companies should have a clear understanding and development planning.
UBI auto insurance based on smart phone
More and more insurance companies have released car networking platforms based on smart phones to track driving behavior data in real time.
This technology will help insurance companies reduce the risk of adverse selection (good drivers prefer to use the car networking platform), improve customer participation and safety, provide stronger support for claims settlement and anti-fraud, and improve the level of refinement and flexibility of underwriting process.
Progressive, an American auto insurance company, launched the experimental project Autograph in 1998, which uses GPS satellite, positioning technology and built-in computer to track the driving time and behavior of vehicles. Autograph was renamed as Snapshot on 20 1 1, and now OBD service is provided through mobile applications. Progressive claims that it has collected more than 654.38+05 billion miles of driving data through its snapshot application.
Allstate, another American auto insurance giant, said that through its Arity platform, it can collect nearly 9 billion miles of driving data every month. Car networking technology will become one of the most important pricing factors in the field of auto insurance, because this data is as important as credit data.
At present, the penetration rate (5%) of car networking technology in the American auto insurance market is not high. Since the beginning of 20 18, more than 10 insurance companies have mentioned the car networking technology or their own car networking platform in the earnings conference call.
Geospatial analysis technology
The progress of deep learning and machine learning technology and the reduction of aerial imaging cost make geospatial analysis technology an important opportunity for the development of property insurance industry.
20 12, the supervision of deep learning algorithm has been able to identify images as high as 1.2 million pixels. In addition, the cost of satellite image technology has been reduced, and many providers including DigitalGlobe, Google and NearMap can provide high-pixel satellite images, which now cover more than 765,438+0% of the American population.
Geospatial analysis technology service providers obtain structured data such as roof condition and house size through deep learning technology to help reinsurance companies with a series of services such as quotation, underwriting and claim settlement. 20 17 Cape Analytics, an aviation image analysis technology service provider, cooperated with Nephila Capital, the world's largest insurance securities management company, to provide personal risks for its reinsurance company customers. Mu once again chose Betterview, a drone survey company, as its housing data analysis service provider.
Uav reconnaissance
UAV survey will be an important part of the claims team of insurance companies in the future.
UAV can help insurance companies collect the risk information of the insured subject matter before underwriting, assist in preventive maintenance, and evaluate the damage of buildings, roofs and other property facilities after the disaster.
After Hurricane Harvey, the concern about drones and insurance reached its peak, and Allstate and farmers both hired hundreds of drones to claim damages.
As early as 20 15, insurance companies such as AIG, State Farm, Travelers and Liberty Mutural have obtained FAA certification and can carry out claims investigation of drones. From 2065438 to 2008, Traveler and UAV software integrator Kitty Hawk jointly built the UAV hardware, software and data flow integration project. At present, its claims team has more than 600 FAA-certified UAV drivers.
The relaxation of regulatory policies may help insurance companies expand the scale of drone business. A recent FAA policy issued immediate restrictions on UAVs in confined airspace. Prior to this, there was a 90-day waiting period for drones to enter restricted airspace.
Visual automobile insurance claim
The progress of smart phone technology has shortened the process of automobile insurance claim, which may take a few days in the past, but now it only takes a few hours.
Visual auto insurance claim refers to the use of software or smart phone camera to help insurance companies determine auto insurance losses. The use of this technology greatly reduces the manpower input of auto insurance companies in auto insurance claims.
For example, Allstate has reduced more than 900 auto insurance loss stations. In the quarterly earnings conference call of Allstate, the person in charge of its personal auto insurance department said that auto insurance claims usually need person-to-person or car-to-person, and visual claims technology reduces this process.
Snapsheet, a startup company, has developed a white-label mobile application to help insurance companies handle auto insurance claims, and now it serves 70 insurance company customers. In 20 16, Snapsheet handled more than 500,000 claims, compared with 50,000 in 20 13.
Robot process automation
Robot process automation (RPA) can smooth all links in the property insurance business chain.
RPA technology can obtain and interpret insurance data, facilitate transactions, obtain data and connect with other systems. According to the industry forecast data provided by CB Insights, the RPA industry is growing rapidly, and the output value is expected to reach 5 billion US dollars in 2025. RPA has been used more and more in the field of property insurance. This technology can help broaden the system restrictions, simplify the manual process, collect data, and assist the underwriting and compliance process from underwriting to subsequent underwriting.
The financing scale of RPA service providers continues to increase. The valuation of enterprise RPA software company UiPath increased from190,000 dollars in 20 17 years to 3 billion dollars in 20 18 years. The company uses machine learning and artificial intelligence technology to automate business processes and provide services to more than 700 corporate customers around the world.
02
Experimental trend
Experimental trend refers to the conceptual or early trend, which has not yet developed diversified functional products or launched large-scale applications. The experimental trend should have aroused the media's early interest and proof of concept.
Embedded family insurance
While the process of purchasing houses is becoming more and more automated, home insurance will also be more closely embedded in the platform.
In the process of mortgage application, financial institutions usually require owners to buy home insurance for at least one year. But the existing process is broken and complicated, and involves different participants at every step. The average cost of applying for a mortgage loan is $7,000, and the application process may involve more than 400 pages of application documents and more than 25 people working for 50 working days. The labor cost of this process is about $5000.
Buyers hope that the process of applying for mortgage loans can be more automated, and lenders also hope to speed up the process and reduce costs by using digital tools. In this process, family insurance may be more closely integrated with the purchase process.
Blend Labs can speed up the mortgage application process by improving the efficiency of document collection, form digitization, CRO system and mobile phone electronic signature system. At present, the home insurance sector has been opened, which saves time for both parties to the mortgage by increasing the option of buying home insurance in the process of buying a house. Roostify and Approved digital lending platforms have also launched similar businesses.
Occupational protective wear equipment
In the United States, employees' compensation insurance covering work-related injuries and income losses is a market as high as $53 billion.
Occupational compensation insurance covers a long tail field, because it may take several years for injured workers to return to work. The application of wearable devices and sensors in the field of industrial injury prevention can help realize the safety prevention of working in dangerous environment, and can also reduce expenses by providing employee health data.
The application of wearable devices and sensors in the field of employee compensation insurance is still in its early stage, but some companies have begun to try. Argo Group cooperates with Kinetic to detect operational risks and issue danger warnings in time by using wearable devices in restaurants, supermarkets and other places where claims usually occur. SafetyCulture has provided a mobile detection app called iAuditor for more than15,000 companies, which helps to develop the risk information of employees' compensation insurance products through customers' quality and safety records.
Network security insurance
With the continuous development of network security insurance market, network risk analysis service providers need to prove that they can help insurance companies improve underwriting performance.
Muzi predicts that the market size of network security insurance will reach 9 billion US dollars in 2020, twice that of 20 17. As enterprises gradually realize the existence of network security risks, traditional property insurance products may cover more content related to network security. In 20 16, 170 insurance companies provided network security insurance, and the top 20 insurance companies, including AIG, Anda and Travelers, accounted for 87.3% of the network security market in the United States.
Some opinions about network security insurance are crucial. Buffett mentioned at the 20 18 annual meeting that "in fact, I don't think anyone understands what network security insurance is protecting, and we don't want to be an experimenter in this field". In 20 18, Zurich, CNA, Anda and other property insurance companies and Beazley American branch signed cooperation agreements with network security analysis service providers.
Business data integration
Insurance companies are trying to make more use of social media and public data in underwriting and claims settlement.
Business data integration solution can help insurance companies to optimize underwriting process and help claim anti-fraud. Allstate cooperated with Carpe Data 20 17 to identify claims fraud by using social media data and reduce the investigation cost. At present, more than 40 insurance companies in the United States use Carpe Data's products.
Commercial vehicle networking
Although many commercial vehicle companies have adopted car networking technology to analyze driving behavior and vehicle operating costs, the application of car networking technology in the field of commercial auto insurance is still in its early stage.
Car networking technology can help commercial auto insurance contact insurance companies in time when accidents or dangerous driving behaviors occur. The compulsory measures of supervision are also a kind of motivation.
In 20 17, the federal government of the United States required all commercial trucks to install electronic recorders (ELD) to record the driving time of truck drivers. Progressive then launched an innovative product called Smart Haul, where customers can get discounts on commercial car insurance by meeting the standards of safe driving behavior. Smart Haul collects driving behavior data through ELD, without the need for customers to install new car networking devices.
Local weather analysis
Analysis of local weather and climate data can improve underwriting and pricing efficiency.
In 20 17 years, the global catastrophe insurance loss exceeded 1000 billion USD. Insurance companies try to find better climate and weather forecasting technology to support their business in different regions.
For example, Understory owns and operates a ground sensor network, which can collect weather information of five subway lines and more than 500 stations in the United States. Insurance companies can better manage extreme weather prevention activities by using their hail and wind data. In addition, some companies use wireless or wired technology to make miniature weather forecasts.
03
Potential trend
The potential development trend has usually been confirmed by mainstream industry forecasts or investment activities are active. These trends have been verified by early participants, or are in the early stage of being widely accepted by industry and consumers.
Business data automation
Insurance companies are gradually realizing the value of unstructured and semi-structured data.
The property insurance industry faces a lot of unstructured and semi-structured data: from insurance to claims, from PDF and Excel to scanned images and emails. For insurance companies, reinsurance companies and channel providers, the value of unstructured data is enormous, including improving underwriting efficiency, automating underwriting, determining underwriting profits and predicting claims. Insurance intermediaries are natural partners of commercial data automation software, which can help them better identify underwriting profits.
Smart home sensor
In the past few years, smart home equipment providers, such as Nest, Canary and Ring, have provided customers with discounts on family insurance.
Although smart home devices hope to help insurance companies carry out risk management, the actual operation is lower than expected, because it is still difficult for insurance companies to improve the coverage of smart home devices. As the giants enter this industry, insurance companies remain interested in this field.
For example, travelers recently cooperated with Alexa of Amazon to provide discounts on three smart home devices, including security cameras, water leak detectors and motion signal monitoring, to improve the coverage of smart home devices.
04
Transition trend
Transitional trend refers to the development direction that has landed, but there is uncertainty of market opportunities. A broader knowledge and understanding of the transition trend may bring market opportunities.
chatbot
The application of chatbot technology in insurance industry may be exaggerated.
Lemonade uses the chat robot Maya to provide quotations for housing and tenant insurance customers and handle the claim process. In addition, some insurance companies cooperate with technology companies to provide AI interactive services.
XL Catlin cooperates with RightIndem to provide online marine insurance claims tools in North America, and customers can enjoy real-time on-site data and images. Helvetica, a Swiss insurance company, cooperated with Rasa Technologies to develop a sales assistant tool to assist the sales process through a text-based chat system.
Attention to chat bots reached its peak in 20 17, but its integration into business caused some controversy. Start-ups Next Insurance and Hippo have cancelled the chat bot service.
Insurance technology-as a service
As insurance products are increasingly embedded in ecosystems such as * * * enjoying the house and * * * enjoying the tour, many insurance companies try to develop scene-based insurance products.
Progressive partners working with Slice Labs provide tenant insurance for short-term rental platforms such as HomeAway and AirBnb, which can cover up to 45 days from the start of check-in. Partners and law&; General also cooperates with Slice Labs to provide similar products.
Another typical representative is the liability insurance for commercial drones. Liberty Mutural cooperates with startup REIN to provide drone liability insurance on a daily or annual basis.
refer to
Emerging trend of CB Insights: What is P&G's next step? C insurance