Page 30 - Insurance Times June 2021

Continued from last issue
3rd Prize Winner : Technical Paper Writing Contest 2020

INSURETECH: A

TOOL FOR

INSURANCE

PENETRATION

Internet of Things that is insured is fitted with sensors and on-board diagnostics
(OBD) systems to monitor the performance of the car.
With the traditional view, the general insurance industry is
always viewed as an industry, which financially compensates
individuals and organizations for losses incurred by them. These parameters will help the insurer to assess the
However, the biggest challenges faced by insurers are claim premium that the driver will have to pay, with lower
valuation. The process is very tedious for almost all the premiums for safe drivers. In the event of an accident, this
insurers because of the amount of data that needs to be data can be relayed immediately to the insurer and to the
emergency services for a timely response. The insurers can
analyzed before paying a claim. Customers also face long
immediately validate the case and pay the insured amount
processing times, especially after dealing with a financial
loss. Furthermore, there is always a high probability of to the customer. This tech-centric approach is highly reliable
fraudulent claims, which necessitates a rigorous validation for legitimizing claims and eliminating the possibility of
fraud. The above mentioned is an example of reactive way
process. IoT can be helpful in eliminating such issues. IoT
sensors can be used to track key parameters on an insured of dealing with IOT. We can also use this as proactive way.
For example, in motor insurance, the data on the vehicle's
person or object. If the object of insurance is a person, they
can be given wearable devices that track basic health real-time position and performance, traffic and weather
parameters over time. In the event of an insurance claim, data, the driver's behavioral data, will all be processed
the recorded data can help prove allegiance to clauses in through machine learning algorithms. This will lead to the
prevention of accidents through valuable feedback to the
the insurance policy. In the case of auto insurance, a car
driver on his driving and vehicle maintenance.

About the author Blockchain Technology
Blockchain is a technology, which can save anything from
Shashi Kant Dahuja assets to electronic cash. It has defined ledger that can
Chief Underwriting Officer record transaction, track fraud, reduce and cut cost from
FIII, ACII, Chartered Insurer underwriting and claims. Blockchain can influence existing
Shriram General Insurance Co. Ltd.
business model. However, on the other side of the page, it
30 The Insurance Times, June 2021