Infographic of how AI and IoT will revolutionise Insurance by 2020.

1. What does Artificial intelligence and the Internet of thing mean for Insurance?
BUSINESS&CUSTOMER
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PolicyServicingClaims ServicingRenewals
Sarah is
now covered
and happy!
Policy Renewal
Guide
Using the data she has
provided, the virtual agent
guides Sarah through the
renewal process. Referencing
the analytics on how her
habits have impacted her
premium reduction, Sarah
can easily set goals for her
new policy and understand
what the benefits will be if
she achieves them.
This is Sarah
She is in the final stages of
buying her first home and is
looking for a connected
insurer who can provide
coverage for her home,
health and car.
Broker
Support
Sarah’s
mortgage broker
can easily
recommend the
right insurer and
initiate the sales
process by
connecting
them using a
virtual
relationship
manager.
Virtual
Sales
Advisor
Sarah can instantly
start chatting with a
virtual sales advisor
on her smart phone
to get professional
advice on suitable
insurance products
for her situation
and needs.
Home
Maintenance
Data from the home
sensors signal that the
cold weather is
affecting her pipework.
Plumbing maintenance
is scheduled and the
appointment is added
to Sarah’s calendar.
Fitness
Tracker
Sarah then goes for her
morning run which is
tracked on her tracking
wearable. By the end of
the week she receives an
update that her premium
will be on track to
receive a discount due to
her consistent workouts.
Accident
Alerts
Whilst driving,
Sarah receives a
notification that
she is entering a
route with a high
frequency of car
accidents. Her car
then recommends
a safer route with
less traffic helping
her avoid any
potential claims.
Smart Farming
Sarah works for a Corporate
Farming Company that uses
an IoT Precision Agriculture
Platform to collate real-time
data and make better
operational decisions.
Policy
Purchase
The virtual advisor
explains the T&Cs in
simple terms so Sarah is
able to easily understand
her options, review her
choices and confirm the
purchase of the policy.
Smart
Thermostats
Sarah checks in on her
mother who lives on her
own's home to see if the
temperature is correct.
She can easily control
the temperature of the
heaters on her behalf
using her home app.
Car
Maintenance
Sarah sets off to work in
her AI-powered Tesla
with a 40% less
likelihood of having an
accident, reducing her
insurance premium. She
receives a notification
that the engine needs
to be serviced by the
end of the month. Using
the in-car screen she
asks her Tesla to book
the appointment for
next week.
Fact check: 74% of
consumers are willing
to receive computer-
generated advice on
the type of insurance
to purchase.
Fact check: 64% of consumers want to
recieve real-time notifications when
they enter routes with a high
frequency of car accidents.
Fact check: 43% of
consumers are likely to
consider a connected
insurance service to manage
their smart home devices.
Fact check: 60% of consumers
are likely to consider a connected
insurance service to help them
become and stay healthier.
Fact check: 78% of consumers are
interested in insurers that help their
relatives to live safely in their homes.
Fact check: by
2020, 98% of total
cars sold are
expected to be
connected cars.
Fact check: 42% of
customers are very
willing to get
insurance advice
from robo-advisors.
Fact check: 65%
are willing to
share third-party
data with their
insurer for more
relevant products
and services.
Fact check: 74% of consumers are willing
to receive computer-generated advice
about the type of insurance to purchase.
Operational
Decision
Support
Since the bad weather is
affecting the yield of the
wheat crops, the Precision
Agriculture Platform
suggests that Sarah
postpones any sales.
Everyday
Service
Agent
Sarah finishes work
late but would like to
update her payment
details for insurance
premiums to take
advantage of the
discount she will
receive in the
morning. She uses
her voice assistant to
process the request
and gets this done
immediately.
Smart Security
Before Sarah turns off for
the day, her voice
assistant can check that
her house is locked
providing visibility on
each door and window.
For peace of mind, Sarah
can also check on
relatives such as her
mother.
Car Accident
Sarah is on a road trip when she
has an accident. She immediately
connects with her insurance virtual
agent to notify her insurer and
make a new claim. She can
easily upload and send all of the
required supporting media
including images and videos to
complete the process faster.
Life Events
Sarah is getting married. Her voice assistant
picks up the update on social media profile
and asks her if she would like to extend health
coverage to her husband and if the home
insurance will require two policy owners.
Sarah confirms and the policy is updated for
her automatically.
Claims Pre-assessment
With the images and video provided by Sarah,
as well as the sensor data from the car, the
insurance virtual agent (VA) is able to use
Machine Learning capabilities to establish that
the car needs to be repaired by a specialist. The
VA then requests a local road service to pick up
the car and automatically calls a ride to drive
Sarah home safely.
Settlement
When the claim has been
completed, Sarah receives a
notification of the completion.
The insurer has already paid for
the road pick-up services and the
repair on her behalf.
Progress
Notification
Sarah is automatically
notified every step of
the way via her
preferred channel of
communication. She
can easily provide
additional information
to her virtual advisor
when requested from
her mobile phone or
voice assistant device.
End of Policy
Notification
When her policy is due for
renewal, Sarah receives a
summary of the benefits she
has received over the past
year: a 10% improvement in
her cardio fitness, 3 car
break-downs that were
prevented and a £50 saving
on her premium. She also
gets personalised advice and
information on how to
improve her fitness and
driving skills.
CUSTOMER VISION 2020
Transactions
To Experience
Moving away from transactional
relationships, insurers become an
integrated part in a customer's
everyday life.
Insurance
To Assurance
Potential accidents and
break-downs are identified before
they can happen providing
preventive measures at every touch
point.
Improved
Risk Management
Data from IoT devices and Machine
Learning enables more accurate
fraud detection and prevention.
Increased
Service Hours
Virtual agents work 24/7 without
interruption and are trained to
automatically deliver consistent
real-time services to every
customer.
Operations
Cost Efficiency
By automating repetitive Q&A
scenarios insurers can free up staff
time to focus on complex issues.
Cost per customer or broker query
can be reduced by up to 90%.
Emerging Innovative
Products
As IoT and AI enable a more
comprehensive view of customers,
and the risks from traditional
products are reduced, insurers can
offer new innovative products for
emerging customer needs such as
identity theft cover and online
reputation protection.
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