Examples Of Innovation In The Insurance Industry
Who remembers Blackberry mobile phones?
Blackberry was the number one phone on the planet at the start of this decade. Everyone wanted one. President Barack Obama had one. The world was Blackberry’s oyster. Then, they dropped that oyster.
Blackberry thought it was impossible to be knocked off its ivory tower, so it stopped tracking innovations in the mobile industry (or at the very least it stopped responding to the latest trends), and most of its rivals overtook it.
Let this story be a lesson to all entrepreneurs, including those in the insurance industry.
Keeping track of the latest innovations is key to your future success. It’s essential for a business to be proactive, not reactive. With this in mind, here are three key innovations happening in the insurance industry right now.
The blockchain isn’t just a platform for trading Bitcoin. Programmers are starting to investigate whether it’s decentralized and immutable nature can be used in other industries outside of digital currency, including the insurance industry.
The most exciting Blockchain-based innovation that looks set to disrupt the insurance industry is ‘smart contracts.’ These are contracts based in the blockchain that automate processes when move parties meet the terms documented.
Several start-ups believe smart contracts can help automate insurance claims: a move that will reduce disputes about payouts and significantly cut insurance fraud. It could change the way that claims are calculated. A trend to keep an eye on, for sure.
The Internet Of Things
The additional connectivity being added to hardware is helping insurers switch their focus from compensation to preventing.
Telematics, or ‘black box car insurance’ as it is widely known, is already helping insurers to make more accurate assessments of driver’s risk.
This growth of ‘smart homes’ is allowing insurers to apply this same concept to home insurance. Insurers could potentially monitor a building with devices such as smart thermometers, smart security systems, or leak detectors to help identify the threat of a claim being made before the incident actually happens.
Drones are increasingly being used by insurers to assess risk. They can be used to assess a damaged home quicker than a staff member with a car, especially with parts of a building that would otherwise be difficult to access, such as a high roof.
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