Pioneering use cases for IoT in Insurance

Since the emergence of the internet, networks and all the connection that this requires, we have been living in an interconnected world with the presence of elements and tools such as ioT devices, which have been seen more frequently.

En nuestro día a día estamos rodeados de una gran cantidad de tecnología, redes y sensores. Nuestros teléfonos son una prueba de ello, ya que posee un software que se actualiza constantemente de manera inalámbrica; cuando lo perdemos podemos rastrearlo de manera remota.

Por otro lado tenemos a los restaurantes que cuentan con códigos QR para evitar el uso de menú o cartas y propagar el COVID-19. Asimismo, tenemos almacenes que usan robots para automatizar actividades manuales y aumentar la productividad.

Let’s spread the iOT

It is known that the vast majority of insurers have not yet implemented or explored the Internet of Things, however, the few insurance companies that have taken the step have demonstrated the great potential in using it.

There are now international insurers with thousands of telematics-priced policies in their auto portfolios, customers using iOT-enabled wellness reward systems in their life insurance portfolios, and thousands of workers protected with real-time risk mitigation solutions.

As Insurance thought leadership points out in an article, much is the extraordinary potential of iOT, which allows insurers to connect with their customers and risks, providing benefits such as the following:

  1. Improve the customer experience by pushing the proximity and frequency of interaction with them, thus reaching beyond traditional risk transfer. Many players are selling additional services for a monthly fee; others have found new ways to sell insurance coverage thanks to IoT.
  2. It refines core insurance activities (assessment, management and risk transfer) by using IoT solutions for continuous underwriting, claims management and risk reduction. The use of information generated by IoT data stream analytics has promoted less risky behaviors in real time.
  3. It generates knowledge about policyholders and their risks, to underwrite them differently, enabling up-selling and cross-selling and for new risks.

Despite this promising outlook, there are many players in various companies that have not understood the nature and relevance of joining the IoT. Each of the successful pioneers has designed their vision and strategy for ioT usability within their business processes.

Finally, one of the most common mistakes is to focus on the “thing”, such as a smart device. However, IoT is about data, not things and even focusing on the data is a mistake as what really matters is the use of the data.

Transforming business processes, through the use of data, has been the secret sauce of any successful IoT insurance program.


3 ways in which digital initiative creates value

As time goes by and as many different digital initiatives are developed, companies must look for three main types of value in order to continue growing and making a difference. Do you want to know what values we are talking about? Keep reading the article and find out what they are.

Researchers Ina Sebastian, Peter Weill and Stephanie Woerner conducted interviews with 23 executives from companies around the world and an exploratory statistical analysis using data from a global survey of 1311 executives. The three types of value explained 39% of the companies’ revenue growth and 24% of their net profit margins compared to other companies in their industries.

According to the Management Sloan School article, there are 3 types of value for companies:

01. Value of operations

Creating new value from operations is the foundation of digital business, in fact companies can benefit from the digitization of business operations through cost reduction, increased efficiency and speed.

Some examples we can mention are developing modular components, automating processes and being more agile. 54% of the companies surveyed were effective in creating value from operations.

Discover the benefits of LISA Claims

02. Value of ecosystems

Ecosystems are new to most large traditional companies and are created when one company partners with others to provide customers with a single destination where they can conduct a variety of activities and transactions.

It is known that companies have a 30% effectiveness rate, on average, based on the ecosystems and the value they offer.

Know everything about our digital ecosystem LISA Gateway

03 Customer value

Companies working on digital innovation are able to generate more revenue from customers through cross-selling (selling different products to an existing customer) and new offerings. Digital initiatives allow the company to expand its knowledge of customers and offer them more choices. Industries have an average efficiency of around 40% in creating value from customers.

Is it easy to get started in digital? Obviously not, and that does not mean we should be afraid to take the risk of going beyond the conventional. The road may be difficult, but once you take the step you will be able to build a new strategy focused on improving processes, customers and the combination of systems and ecosystems.

Starting today will bring us benefits tomorrow and many possibilities for our companies, remember that you can count on LISA’s help!

Artificial Intelligence Technology

How much will AI influence insurance in the next decade? Pt. 1

Technology is advancing by leaps and bounds and does not look back, which is why over the next few years we expect endless opportunities thanks to the massification of artificial intelligence in many industries.

Can you imagine the insurance industry being more influenced by technology? The truth is that this will be the case in the next decade and we must prepare ourselves now so as not to be left behind and to be able to achieve more competitiveness, differentiation and influence.

How do you think your customers would feel if you provide them with timely communication, facilities to contract new products and services that are tailored to their needs, secure processes and interconnected platforms that work 24/7?

It sounds a bit utopian to think that one of the industries that has had the hardest time getting out of its comfort zone can grow and develop to the point where it does not need manual labor, paperwork and long response times, doesn’t it? However, it is projected that within a decade, the insurance industry will undergo a metamorphosis as a result of artificial intelligence.

With the new wave of deep learning techniques, artificial intelligence has the potential to fulfill its promise of mimicking the perception, reasoning, learning and problem solving of the human mind.

In the same vein, technological evolution will enable insurance to move from its current state of “detect and repair” to “predict and prevent,” transforming all aspects of the industry in the process.

As AI becomes more deeply integrated into the industry, carriers must best position themselves to respond to the changing industry landscape. In that regard, insurance executives will need to understand the factors that will bring change and how AI will transform everything. Here are some of the technology trends that are enabled or enabled by artificial intelligence:

  1. Data bursting from connected devices: many industries have connected equipment with sensors, however, over the years this will increase.

The penetration of existing devices such as cars, fitness trackers, home assistants, smartphones and smartwatches will continue to grow rapidly. It is estimated that there will be up to one trillion connected devices by 2025.

The avalanche of new data created by the aforementioned devices will enable operators to understand their customers more thoroughly, resulting in:

  • New product categories.
  • More personalized prices.
  • Real-time service delivery.

And on the other hand, we get:

2. Major heyday of physical robotics

The field of robotics has had many achievements today and this innovation will continue to transform the way people interact with their surroundings. 3D printing will radically reshape the manufacturing and commercial insurance products of the future and it is expected that by 2025, 3D printed buildings will become more common and how this development changes risk assessments will need to be evaluated.

Related to the above, programmable autonomous drones; autonomous agricultural equipment; and improved surgical robots will also be more widely employed. By 2030, a much higher proportion of standard vehicles will have autonomous features such as driving.

We want to expand a little more on the subject, but in order not to make this article so long and heavy, we invite you to wait for the second part, which is quite interesting, so if this technology has not yet convinced you with everything you have read, with the second part it will.

Expect it soon!


Discover the impact of Low-Code on businesses

Today’s industries must focus on continuous market disruption and innovation, where we find and it’s time to talk about low-code platforms, their benefits and more. Are you ready?

First, Low-Code is a platform that simplifies and streamlines the process of creating application software through a graphical user interface, leaving aside traditional computer programming, offering flexibility to address customer needs.

As social FUTURO points out in its web page, we can affirm that in simple words, it is the union of different components created, which are mixed to obtain the final result of the application. In this way, it is not necessary to create the application from scratch.

Low-code features

According to the Accion.point web portal, the most relevant features of the low-code are:

  • Low code: allows small developments, evolutions and future escalations.
  • Minimum viable products: Describe rapidly MVP.
  • Scalable innovations: authorizes implementations on the fly, learning and optimizing.
  • Extensions to more channels: without having to write complex code. Some examples are: self-service portals, chatbots, among others.
Benefits of low-code

After having explained what it is and its most relevant characteristics, here are its benefits:

  • It enables fast delivery of commercial applications with a minimum of manual coding.
  • They allow applications to be modified quickly.
  • Process flows are easy, allowing any user to drag and drop interface templates.
  • The tools are visual, rather than having coding syntax. Designers, analysts and process specialists can use them to contribute to the development of business applications.

Technological challenges are advancing faster and faster, which is why low-code platforms are one more proof of this. That is why it is important that you bet on a more relevant and agile business technology, which will undoubtedly mean an invaluable opportunity to be part of all this digital revolutionary movement.


Why should you be interested in No-Code?

Thanks to technology and its multiple uses, many companies have decided to adopt tools to be more innovative and make their platforms simpler and more moldable. For this reason, we want to show you what No-Code is and its benefits for industries.

What is No-Code?

It is a development platform that allows programmers and non-programmers to create application software through graphical user interfaces and configuration instead of traditional, code-driven computer programming.

These are its benefits:

01. Accelerates Time2Market: This means that the time to market is shorter and the process of taking a customized enterprise solution from ideation to production is measured in weeks or even days rather than months or years. No-Code can be used to accelerate initial builds and also subsequent upgrades.

02. Improved quality: applications built without code can reduce the occurrence of errors by more than 600 times compared to those built using code.

03. Lower cost of ownership: No-Code reduces the cost of developing and managing enterprise solutions by 300%. When you build without code, you stop creating new legacy code that will need to be updated and rely on technical debt.

04. Enables innovation: since projects can be launched quickly and at lower costs, organizations can experiment without the built-in risk of a traditional development approach.

05. Engaged employees: allows experienced engineers to focus on complex solutions, expanding the ability of company-led teams to tackle routine (but still important) development projects.

06. Generate peace of mind: security, compliance, RBAC and infrastructure are immediately maintained and monitored, allowing teams to focus on other areas.

07. Improved collaboration and access: while modern programming languages (Java, Python, among others) can take a year to learn and a long time to master, non-code can be learned in a matter of weeks. In the same vein, functional prototypes can be quickly created to ensure that business requirements are properly addressed early in the process.

08. Increased digital resiliency: With no-code, organizations can quickly add and modify their digital infrastructures to cope with business disruptions of any scale.

LISA’s solutions are based on no-code platforms where the user does not need to program to configure the platform parameters, but can do so through graphical user interfaces and configuration.


Can telematics reduce costs?

The insurance industry has been characterized by offering in the vehicle branch, insurance based on linking the costs of these with the way in which a vehicle operates.

Equipment managers can benefit from telemetry data from their heavy duty trucks, as the data can be used to train operators and drivers to improve and change their behaviors:

It allows remote control of processes such as the location of a vehicle, fuel consumption, load status, performance, safety factors, among many others.

Fleets that reduce behaviors that lead to accidents may be able to reduce the frequency (plus associated costs) of accidents and eventually lower their construction equipment insurance premiums.

By collecting data using telematics, current and real-time feedback can be obtained to help identify risky driving behaviors and enable drivers to be trained to improve their performance.

Most relevant characteristics:

1. Contributes to the reduction of claims: by maintaining the interconnection of ioT devices with a main central, alerts of all kinds can be issued in the event of any suspicion. This favors both insurers and their policyholders.

2. Savings on supplies: the systems provide immediate information on the status of the truck, allow programing routes and monitor driving conditions to save fuel and prevent failures due to malfunctions.

The transport company may have precise data on the location, route and speed of the vehicle, fuel consumption, driving mode or stopping times. This will make it easier to manage operator performance.

3. Safety: telemetry is capable of reducing road accidents by 57%, making this technology a strategic ally to minimize costs and optimize processes.


How does telemetry work in Insurances?

Sensors must be installed in the car or at home, which will allow a large amount of data to be sent to a specialized central, where there will be:

1. Data collection: in the case of cars such as speed, location, among others and in the case of home, humidity, any gas leak, among others.

2.Transmission to an installed transmitter: the data collected goes through a wireless transmission to an installed device, which may be a cell phone or other transmitter connected to a network or satellite communication. With the above we can say that all the data collected can be reported and collected in real time.

3. Data lifting: The data collected by the sensors are converted into common quantities that can be read quickly, such as km / h, temperature, fuel levels or location on a satellite map.

4. Satellite communication: Either through a cellular or satellite network, the data is transmitted from the device to a centrally located remotely where your data is centralized in real time.

5. Immediate feedback: The central is able to receive and evaluate the data at any time, which allows sending orders immediately, either by contact with a human operator or by an automated order.

There is no doubt that this type of technology represents a great advance and opportunities worldwide for insurers. With its use, the insurance industry will be able to lower prices for its services and reach a greater range of clients by being more affordable.


Some benefits of telemetry in the insurance industry

As we saw in the previous article, telemetry plays a super important role for any company, especially for the insurance company that, due to its rudimentary nature, has not been able to advance to offer different products and services to its customers. Its most outstanding benefits are:

1.Cost of insurance according to its use: by means of a telemetry device that was installed in cars, the general behavior of the driver can be analyzed and from this, collect information about their braking, speed, distances traveled, among many other things.

Based on the above, the insurance company will receive the data collected and can evaluate it to determine the cost of the insurance premium. For example:

A customer who drives a long distance at a high speed will be charged a higher rate, unlike a person who drives short distances at a lower speed.

2. Strengthens and encourages road liability: this will make customers aware of the way they drive their cars, since the cost of their insurance will depend on this. It is known that people who have opted for this modality have managed to reduce the cost of their insurance by up to 25%.

The general use of telemetry in insurance is located in the vehicle branch to offer completely personalized services such as the well-known “Insurance per km”.

3. Reduction in claims: Based on various studies of telemetry within the insurance industry, we can find that not only does it reduce contracting and operational costs but also, thanks to behavioral assessment, it is possible to reduce costs by 57%. road accidents, transforming this technology into a strategic ally for insurance.

In the same sense, telemetry may warn in advance about some mechanical failures that put vehicles and workers at risk, avoid criminal acts and have the possibility to report the facts immediately to the authorities.

Insurers from their origins have worked to support difficult times such as claims, once they occur. However, with the emergence of technologies such as telemetry, they can be more competitive and efficient thanks to the fact that they can anticipate unfortunate events that may occur due to excess humidity, short circuits, theft, and even increased vehicle speed.


Know more about the telemetry and its impact

It is a system that allows real-time monitoring of various values ​​and variables, being able to collect all the metrics and characteristics of an asset exactly, which are sent to the system operator.

Generally, its use allows the optimization of the processes and actions on which the correct operation of a business depends, collaborating with asset management and improving all security systems.

Its general uses

It is used in large systems such as chemical plants, electricity supply networks, gas supply networks, among other companies that provide public services, as it facilitates automatic monitoring, the recording of measurements, the sending of alerts or alarms to the control center, in order for the operation to be efficient and safe.

Can telemetry be used in the insurance industry?

It is used especially in the vehicular branches, since this allows multiple benefits such as:

  • The monitoring of each of the insured cars in real time and automatically.
  • It allows insurers to analyze the behavior of their drivers, providing warnings and the creation of warning systems for unsafe behavior behind the wheel.

We explain better with an example:

Let’s imagine a company that can create a system capable of sending alerts directly to the dashboard of your vehicle, notifying about the quality of fuel, engine oil and also if there are changes in the climate of the usual route or in the behavior of the car.

In the same sense, the monthly price of a vehicle insurance can be valued, just by monitoring the insured’s driving style or even establishing a fixed value based on the metrics that the system shows according to the way in which they drive.

This technology can also be used in the home insurances, allowing it to even detect theft, locate objects, detect suspicious movements, control weights and much more.

In the same sense, we can mention that it allows monitoring liquid levels, fluid parameters such as temperature, pressure, flow rates, even detecting dangerous gases (Something that can help prevent fires, for example). It has even been said that telemetry can prevent when natural disasters can occur. The foregoing translates into a springboard of opportunities worldwide for the insurance industry, as this would lead to enormous growth, competitiveness and within reach of a greater range of policyholders.

Artificial Intelligence Technology

Do traditional industries employ machine learning?

Yes, and they use it to gather new business knowledge. We explain it to you in this simple example:

A machine learning startup called Second Spectrum created predictive models so that coaches could distinguish players with good shots and others who take bad shots and thus evaluate and correct the consequences in the middle of basketball games in the US.

Another example can be General Electric, a company that has a history of more than 130 years. This industry has made thousands of dollars processing data it collects from deepwater oil wells or jet engines to optimize performance, anticipate breakdowns, and streamline maintenance processes.

What’s Outside North America?

In Europe there are different banks that have changed the old statistical modeling approaches for machine learning techniques and in many cases, they were able to improve their numbers: they increased sales of new products by up to 10%, achieved savings of 20% in capital expenditures and even the 20% increase in cash collections.

How did they go about achieving all this? Through the design of new recommendation engines for retail and Pymes customers.

Are we close to machines replacing humans?

It is indisputable that changes as a result of the emergence of technology are coming and the data that is generated throughout the process is done with such speed that human participation has been moving aside.

However, in the coming years, we will see more of the use of Artificial Intelligence, as well as the development of autonomous corporations. Without a doubt, large companies will be able to carry out objectives autonomously and without direct human supervision.

If you want to revolutionize your insurance company with cutting-edge technology, this is your opportunity to work hand in hand with LISA.