Insurance-Canada.ca’s Technology Conference 2019 took place on February 26 and 27 in Toronto, and CSIO was there. This year’s theme was: A New Insurance Order: Transformation ⇒ Innovation ⇒ InsurTech ⇒ Disruption.
During the two-day conference, we heard from industry leaders who focused on topics such as claims prevention, operational efficiency through systems integration and most notably, improving the customer experience.
We’ve heard that customers compare every service experience they have with a company against their best ones. How does insurance stack up in this evaluation?
CSIO board member, John Elliot, Senior Vice President and Chief Information Officer of RSA Canada answered this question by giving an insightful presentation on how the insurance industry can use technology to better manage claims, and in turn provide better customer service.
One example John used is applying sensor technology to water pipes found in your home. With water as the most common cause of damage, accounting for 50% of home insurance claims costs, these sensors can help detect in real-time where there is an abnormal amount of water flow. The unusual reading hints that there might be a water leak in the home. If this is the case, the sensor will alert the homeowner to the issue, catching it sooner, rather than later. In the event that the home is empty, the sensor can electronically prompt an engineer to come to the home and resolve the issue.
This type of innovation is significant because it applies a proactive rather than reactive principle towards claims management. Filing a claim is often a stressful time for the consumer and no matter how good the customer service is they receive, it’s something the consumer, and insurers, would want to avoid. This type of sensor allows the customer to act quickly and limit damage to their property and, hopefully, prevent the need to file a claim with their insurance company. Not only that, but insurance companies avoid paying the cost of a large claim. Whereas a water sensor device might cost $100 - $200, the average water damage claim is $17,000 – a huge difference and a testament to the benefit of claim prevention.
This sensor innovation for claims management is just one example of how the insurance industry can leverage new technology to transform existing processes and improving customer experience. We look forward to continuing to see new ways emerging technology can strengthen and advance the insurance industry!