Happy New Year and welcome back to the Accenture Insurance Blog. To recap, I’ve been discussing the implications of the Internet of Things (IoT) on insurers, and in particular, on the claims function. In my last post, I shared two keys to success for being an insurer of things. This week I’ll share three more and look at the road ahead.
Succeeding as an insurer of things: More keys to success
- Extend, automate and adapt the insurance value chain. Many insurers have made steps to streamline and automate claims processes, but there’s still more work to be done. Certain elements of the claims process are labor-intensive and can be automated or enabled by connected car, connected home and machine-to-machine (M2M) capabilities. For example, my colleague Darcy Dague has written about how analytics can enable insurers to automate parts of the claims process. Further down the road, advances in machine learning can enable more efficient fraud detection.
- Share and collaborate through an open architecture. The claims function generates and acquires a significant amount of data that can help other business functions. For example, claims data can help underwriters better select and price risks at renewal, help insurance marketers better segment customers or help product teams achieve shorter time to market. There may also be opportunities to enrich claims data with external sources, or anonymize and monetize claims data for other purposes.
- Foster a culture of innovation. Claims is generally seen as where an insurer’s premium is spent, but it can be a source of tremendous innovation. For example, how can claims leaders help prevent claims, and therefore minimize losses? How can they automate claims processes so that adjusters can spend more time delivering exceptional customer service and building customer relationships? How is the changing nature of risk opening the door to new insurance opportunities? Finally, claims leaders must assert their seat at the table as innovations unfold throughout the rest of the enterprise—to be able to provide input on the implications of new products or services on claims and how they are administered.
The Internet of Things is poised to disrupt the insurance industry and create opportunities for those that are quick to define new roles and create a connected offering model. Claims leaders, in particular, should consider how new technology, new data and new business models can help them deliver on the promise offered by a connected claim—to improve outcomes, streamline processes and enhance the customer experience.
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