Since I started this series, the world’s perception of insurance and its value has changed. There are countless stories bashing the inability of insurance to protect during a pandemic. Hopefully, the world overcomes this crisis and we find a way to be better local and global neighbors amidst this challenge.
Executive SummaryIn the last article of a three-part series, Andy Clapson, data science lead of Slice Labs, describes how cyber compromises and home and auto claims can be detected by sensors, signals and connected devices, helping on-demand digital insurers to proactively reimburse claims—without the need for paper transactions or even Skype interactions with claims adjusters. Systems that can make near-instant claim payments in this fashion will be in greater demand as we exit a crisis during which insureds were left questioning the value of the industry. The first article in the series explained what P/C insurers should know about AI and behavioral economics—How Insurance Executives Can Harness the Power of Behavioral Economics. In the second article, "Turning Intelligent Sensors and Signals Into Insurance Customer Value," Clapson described the use of AI and behavioral science in underwriting, price and product development.
While many are questioning if they should actually purchase insurance, the foundation that I laid in the first two articles that highlighted the industry’s expertise in building quality relationships and the opportunities for intelligent sensors and signals to better function in an on-demand world will be even more valid when we exit this crisis.
What has become clear as offices, universities and other institutions temporarily shutter is the value of on-demand, cloud-based services. Imagine the economic impact if we couldn’t work remotely (which we’ve always promoted at Slice) or if distance learning courses weren’t available. Thanks to our increasingly on-demand world, business and to some extent consumer life can still function.
So, how does this tie into claims? As we’ve previously covered, legacy paper-based insurance applications and stagnant annual policies will not work in this decade. This fact has been raised by many organizations and influencers prior to any crisis.
Let’s say you’re a brilliant entrepreneur, and you created a new product that could help the world with identifying, treating or recovering from the coronavirus. If the product was an AI software solution, you could design and launch it from the comfort of your home. As that business grows, you will likely look to general commercial insurance to cover revenue, as cybercrime is on the rise with the current situation.
Based on data from industry analysts along with experience working with our partners AXA XL and Microsoft, the SMB should really consider purchasing on-demand cyber insurance. Not only does the cumbersome (and perhaps impossible today) process of meeting face-to-face with an agent to complete a long, paper-based cyber insurance application no longer exist, but even before this crisis it was already viewed as a poor service experience.