IoT, New Reality for Insurers
AZLOGICA launches solution plan to boost the insurance sector
Preventive confinement has accelerated the digital transformation of the insurance sector and has put it on high alert so that it does not lose its competitiveness. For insurers, decision-making has had to be quick and in some areas very delicated, such as health,; several insurers have put coverage plans during the pandemic in their portfolio, some for life, others for a fixed term, most certainly with rates that have increased compared to what they were before the emergency.
Therefore, in the midst of the emergency created by Covid19, insurance companies have seen the urgency to lean on technology to offer practical solutions now that users must be at home. For this reason, some companies are already turning to digital platforms that allow them to streamline the buying and selling processes of vehicle insurance. The automobile line, is one of the most worrying sector for insurers, due to the perception of utility of their policies. Policyholders question the payment of insurance that is covering their risk of traffic accidents while their vehicles are “confined”. Insurers, then, have had to evaluate this situation, with the greatest attention, to find a model that suits this reality.
According to a recent report by the American Association of Retired Persons –AARP-, with the inhabitants at home and away from the roads, the most recognized insurers in the United States and in other countries, have decided to offer partial reimbursements of the premiums, in different periods, or suspend cancellations for non-payment, as well as late payment charges.
The challenge that these companies face is to potentiate their offer to both current and future policyholders, individuals or companies. Although the emergency generated by the pandemic has been affecting in its own way each of the lines of economic apparatus, insurers must be able to offer more dynamic insurance policies, which further protect against risks, and which are designed to follow a future that seems uncertain after this crisis.
In a recent note on the subject published by the Portafolio magazine, there are already companies that have developed “a system that gives people the possibility to quote, compare options, fill out, sign forms, perform vehicle inspection, finance the policy and pay 100% digitally, without intermediation of third parties .”
Thus, the digital transformation, but mainly, Internet of Things, is a tool that takes on greater relevance in this insurance sector, thanks to its ability to make the offer more flexible, adapt to the changes that the situation implies and, likewise, minimize risks.
For AZLOGICA the proximity to the world of insurance is not new. For more than seven years, it has provided its services to the sector as technological support to clients such as ALLIANZ, AXA and the Colombian Federation of Insurers – Fasecolda – as well as others of different sizes and origins, but equally important in the sector. Within the operation of these companies, AZLOGICA’s work is framed within a wide spectrum, which embraces not only the company as such, but also reaches
other actors in the process, intermediaries and insurance brokers such as AON and PROMOTORA DE LA SABANA, with support for the technification of risk management through IoT solutions.
Given this experience, and in the midst of these ups and downs, AZLOGICA has structured a portfolio of solutions aimed at the different branches of insurance but in particular those associated with automobiles and transportation. These focuses on the stages of the underwriting process and the provision of speed, as well as the robustness of this technological adaptation for change.
The solution package specifically enables risk minimization, establishing efficiency parameters, regulation control, detection of patterns associated with the behavior of the different types of transport, online inspections and data visualization, among others.
This is the Portfolio that AZLOGICA has designed to enhance these insurer services:
- IoT System for Insurance based in usage:
With Pay As You Drive® platform, the lines dedicated to Automobiles, Transportation, SOAT, and even General Insurance, can be assessed by the degree of exposure to real risk, measured with telematics, GPRS-GPS devices, actuarial processing and analysis of exposure and consumption to generate predictive analytics.
AZLOGICA’s solution allows that all the variables that each insurer has, can be parameterized and thus show online exposure levels that allow automatically establishing the rates of each coverage. Thus, the insurer and the insured will have a policy adjusted to their actual exposure.
- Online registration and management of Biosafety protocols:
Faced with the need to comply with the public health regulations established in the face of the pandemic emergency, as well as the subsequent eventualities due to the risks of contagion, each insured production process will have available the configurable TEAM MANAGER® tool. Through Smartphones, PDAs and even low-end cell phones, this tool will facilitate cross-checking of compliance with regulations. This will reduce health risks and optimize resources.
- Connectivity for Micro Insurance, or Insurance for Alternative Means of Transport:
Regarding transport and the intention to reduce crowds in the current emergency, there is evidence of a substantial increase in alternative means of transport such as bicycles and skateboards. As long as there is visibility, these risks can be aligned with the pricing, according to the degree of exposure they have to the risk, both the person being transported and the asset they use. The tool will measure usage habits, speeds, distances, areas, schedules and routes. Micro insurance policies associated with special transport may be offered.
- Remote and analytical video for online Inspections:
With platforms such as THINGS MANAGER and TEMAN MANAGER®, travel times will be reduced as much as possible. Confidence will increase and the learning curve for critical events will decrease dramatically. This is thanks to the possibility of carrying out online inspections of remote scenarios, which include preinsurance inspections or claims inspections, which will also allow experts to be put in the place where the exposed risk or the claim is located.
- Customized solutions with telemetry:
The specific situations that align with the specific strategies and needs of each insurer have the most appropriate solution in world-class IoT. This is thanks to the online visualization of structured and unstructured data, but also in the generation of crossings of BIG DATA, which allow an actuarial-based risk analysis, predictive analytics, artificial intelligence and Machine Learning.
Each of the possibilities raised by AZLOGICA in this portfolio are tailored to the needs of each insurer. These will allow robust and special solutions, not massive but personalized, and will allow the main asset: data, to be used to its full potential. According to Wilson López, actuary expert associated with AZLOGICA in this project, and recognized in the insurance sector, this type of current analysis, based on data captured with technology, allows for a more accurate current analysis that leads, for example, to the reduction of mutuality in favor of more precise expressions, thanks to better segmentation, which would be favorable not only for the insurer but for the security of the market in general.
For AZLOGICA, the co-creation of these tools with the insurer, with world-class Information Security standards (ISO 27001), will allow optimizing technological resources based on the knowledge and strategy of each, allowing it to scale thanks to its flexibility, its ability to maximize the market offer, its fast return on investment and it constant increase in policyholders loyalty.
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