Nice article in McKinsey Quarterly (registration required) about insurance industry technology innovations
including:
“We know of one insurer that is drafting plans for low-cost, one-day ski insurance policies. The purchase process would be extremely simple: via cell phones, customers would send an instant message with a photo of an ad to a number displayed on it. Policy charges would then be added to their phone bills.”
“Ultimately, sensors installed in customers’ vehicles could track other kinds of higher-risk activities (for instance, parking in high-theft areas). As technologies evolve, some of these features, delivered by GPS in mobile devices, may soon be commonplace. Similarly, health insurers are studying ways to track their customers’ activities, such as diet and exercise, to fashion insurance packages that reward healthy behavior with lower rates.”
“One large auto insurer has launched a prototype insurance project that combines a wide range of technologies. Deceleration sensors and GPS devices in vehicles can detect a collision, identify its location, and automatically notify the insurer. A tow truck is dispatched to the accident scene while additional sensor data help evaluate the damage remotely. Software programs determine the payments and automatically dispatch them, bypassing a range of adjustors and clerical staff. The insurer forecasts a 30 to 40 percent reduction in process costs thanks to this automated process.”
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