Page 32 - Insurance Times June 2021

client services. Customer mobile apps and websites are now collection and other one is reduced operational costs through
equipped with chatbots that can hold a meaningful improved efficiency and effectiveness related to claims.
conversation with the client any time of the day. Audio,
Video and Images are also helping in claims processing and It has features of capturing high quality pictures from bird
enhance customer satisfaction in a faster way. It is used eye-view and recent advancement in drones involved audio
during the time of inspection and system can automatically video facility, which has made easier for insurance companies
assess the risk and can convey the rates and charges to cover to assess risk where it is impossible to visit by physically.
the risk.
It is mostly used in agricultural purpose to collect information
on crop conditions. Drones can help in predicting claims
AI-powered claims could also fight against one of the most more effectively. It can improve the speed with which
costly elements of the insurance industry: fraudulent claims, customers receive settlements and give claims managers a
which cost the industry more than $40 billion a year. Instead better sense of where and how many staff should be
of relying on humans to manually comb through reports to deployed. This can be used at all department of insurance
catch inaccurate claims, AI algorithms can identify patterns
from underwriting to claim settlement.
in the data and recognize when something is fraudulent.
Drones can be used to collect information about a property
Several customer interaction functions can be conducted before a policy is issued by capturing data on property
through AI-based chatbots and voice/speech recognition features that make it less vulnerable and this can facilitate
algorithms. Most leading Indian insurers such as Bajaj personalized premiums as well.
Allianz, ICICI Lombard, and Shriram General have deployed
chatbots for servicing and other customer functions.

Telematics Insurance
Telematics is a device, which monitors the vehicle by using
GPS system. Telematics is derived from Telecommunication
and information processing. It helps in providing information
to insurance companies. The information can be recorded
by a device called black box. Various components of black
box are GPS receiver, SIM card, Engine Interface also it use
various algorithm for GPS logging. A vast amount of data
can be collected using black box like speed of the vehicle, Robotic Process Automation (RPA)
distance, time travelled, battery voltage, engine data, RPA (Robotic Process Automation) is a tool, which can help
number of vehicle on road, weather condition, type of road any organization to automate the task which consume a lot
etc. This can be installed in various motor vehicle like school of time and which are repetitive in nature. As the insurance
buses, commercial vehicle, trucks etc. This information is industry is developing very fast and process becoming more
then stored in cloud. dynamic and complex therefore it is also becoming
challenging for the back off staff to manage their task and
There is an open system telematics which is capable of work is becoming monotonous for them. In addition, manual
integrating other devices also like mobile apps, hardware work increases the chances of error by 60%. RPA can
accessories etc. Telematics helps in improving customer perform task like data entry, capturing, copying, pasting,
services, adjust premiums for insured, efficient decision analyse the risk percentage, flagging the high-risk business
making while underwriting, optimize the maintenance of etc. RPA will carry out the job more effectively, efficiently
vehicle, it can provide accident information, safe-unsafe and consistently.
areas, level of risk involved etc. Underwriting: RPA can be useful right from the underwriting
level as it can help in making the policy itself by analyzing
Drone Technology the quotation and can also assess the risk by grading/
Insurance industry is already deploying and expanding the crediting the risk level of the quotation by using previous
potential of commercial drones. In Insurance, drones are data. RPA can collect the data from multiple sources and
used for better risk management through improved data scan the similar type of risk based on various factors.

32 The Insurance Times, June 2021