Innovation and integration go hand in hand. To innovate your business or your industry you should first understand how to integrate your innovative idea, know your use case and understand the journey.
This couldn't be more true for all car manufacturers and companies who are striving towards driverless cars and developing driver assisted aids, innovation and integration is the key. Some companies within the driverless car space are further ahead than others just like many industries, financial technology and insurance technology etc.
BMW haven't yet released a driverless car but what they have done is integrated driver aids and made the car “smarter” - innovation, integration, the journey. We all imagine the future of driving will be driverless (Ai powered) but there's a lot of regulation around integrating driverless cars into society and there's probably not enough data to able to drive safely in high pedestrian areas and areas with high volumes of fast moving traffic (Europe and Asia). So, I imagine for large scale manufacturers with years of legacy it's better to slowly innovate and integrate the driverless journey rather than go full driverless straight away. This brings us to how this journey relates to motor insurance and technology.
Whoever is involved in motor insurance by now must be aware of the disruption Ai and automation is bringing to the industry and if you're not aware and had your head buried in the sand have a quick web search. The insurers dream is to automate all claims and to never have to physically process a claim, similar to how car manufacturers want their cars to be driverless. The question insurers may have is, how do we start this journey?
You start by integrating automation on various levels into the claims process like driver aids, parking sensors, lain control etc. An insurance company with no automation might start with OCR (optical character recognition) to read your customers documents and driving license, this can help to automate the signing up process or to process information efficiently and maybe verify the customer. Filling in your details can be frustrating for anyone, OCR takes care of this. OCR is a great aid in all insurances verticals and if integrated effectively the technology becomes a real asset.
Low value high volume claims no insurance company wants to deal with these claims especially in motor insurance. Insurers end up sending hours maybe days processing the claim and just to loose money and time, this is due to no automation within the process and this is where Ai can come in. Integrating Ai into a claims process can be daunting for any company but this is where transparency on the journey needs to be made and understood, focus on the low value and high volume first not the complete process. Typically, low value claims are just dents and scratches which consist of repairs and the odd part replacement. These claims are standard and the majority of damage remains on the exterior of the vehicle, great for Ai! Ai is made for dull repetitive tasks such as these.
Slowly improving the process by integrating “driver aids” striving towards full automation “driverless”. Be patient and persistent when starting you will see a great return and process improvement.
Once the Ai is comfortable with handling the low value claims and has proven it's worth the claim value threshold can be increased, allow the Ai software to take on more responsibility within the claims process.
Set realistic targets and strive towards them, start with your aids and full automation will come.