Blockchain Data and Car Insurance

The insurance industry has been working hard to stay up to date with modern technology. Already the industry is making use of predictive analytics to help create customized plans.

This raises the question of how blockchain technology can help the industry. A blockchain is a way to securely store information. The highlight of this method would be the inability to change data once it has been established. In other words – hacking and malicious attempts at alterations will not work.

Smart Contracts

Smart contracts are but one of the ways that blockchain data and car insurance companies have found a perfect balance. Contracts are a part of daily life – especially for insurance companies. A smart contract is simply a more advanced version of the original. 

In this instance, they are digitally signed and stored through secure digital means (blockchain data). All parties involved in the contract, including the neutral third party, can access this data.

Due to the digital nature of smart contracts, it allows for a certain amount of automation. A computer can look at the contract, and if the terms have been met, activate the appropriate next step.

Advantages of Blockchain Data

Many advantages come from blockchain technology, including the information already mentioned in the section above. Digital contracts allow for ease of access – both for the insurers and the insured.

In turn, this helps erase confusion, increase communication, and, more importantly – ensure accurate information. For example, fraudulent claims will dwindle, as all relevant data will be stored in one location. To put it another way, it’ll be simpler than ever to catch fraudulent claims. 

The customer will also have higher levels of protection, as the data will be stored with a neutral third party. This will help ensure that the insurance companies hold up their end of the deal and leave avenues for when things do not happen according to plan.

Insurance companies can use this ready access to data to store client details, going beyond what is typical these days. Data such as driving habits, traffic records, and accidents can all be easily (and safely) stored in one location. 

While that may not sound like a significant advantage – it is. All of the data being in one place would further encourage customized plans, which would once again benefit both parties.

Predictive Analytics and Car Insurance

With the way technology has been improving, it would inevitably begin impacting every industry out there—even the insurance industry, where developments such as predictive analytics have been making waves.

Predictive analytics is a form of machine learning that uses data (usually in the form of statistics and historical data) and algorithms to identify patterns and future possibilities. When it comes to insurance, that can make a world of difference for insurers and clients alike.

How It Works

As a whole, predictive analytics has been a growing trend, with many different industries trying unique ways to apply the technology. Predictive analytics has become so common that anyone spending any time online has likely come across it. Predictive analytics play a part in ad generation, search engine optimization, and website recommendations. And it’s all based on an individual user’s history.

Predictive Analytics Meets Car Insurance

When it comes to car insurance, there’s a lot that predictive analytics can do to help improve the industry. For one thing, it can (and will) allow for a more personalized experience. Gone are the days when an insurance plan was one size fits all.

These days, machine learning can grind through a driver’s history and develop a custom insurance plan uniquely suited to them. For example, a safe driver with a record of following speed limits, wearing seat belts, and avoiding tickets can rest easy knowing that they got the best deal possible.

Applications of Predictive Analytics

The possibilities for predictive analytics don’t end there. That’s the beauty of this customization engine. Insurance companies can use this technology to compile crash data and even flag fraudulent claims. It all depends on the data they feed the program.

Marketing campaigns have already begun to make heavy use of predictive analytics, and soon insurance companies could be doing the same thing. Let’s go back to that online example from earlier. A person hops online, does some browsing, and calls it a day. The next day, they get an email advertising a sale on an item they were looking at. This is not a coincidence but rather a carefully orchestrated plan.

Insurance companies can do the same thing – marketing the right plan to the right clients and knowing how to best approach them. Some clients prefer to be approached via email, others via phone or text. Machine learning can help process that information and create a personalized plan for thousands of potential clients.

Auto Tech Driving Insurance Explained

Our interactions with cars change every year as new technology comes out to improve the experience. As such, auto insurance must find ways to adapt right alongside the industry. This is no mean feat and takes a lot of careful planning. 

Most recently, auto insurance companies have begun to develop automated ways of measuring and creating new plans. There are many benefits to this feature, including highly customizable plans.

The Complication

There is one complication with the plan to go full automation when it comes to insurance: people’s willingness. According to CCC Information Services, Inc.’s Crash Course report, until recently, most drivers were unwilling to share such detailed and personal information.

What sort of information do these metrics require? The predominant concern revolves around mileage. New features allow for easy personal data collection, including driving details, travel speed, and location.

Up until recently, only 41% of those surveyed were willing to share their data. That number has gone up to 54% and is likely due to the changes that the pandemic brought with it. Primarily the reduced time spent in cars.

One of the main concerns from users, unsurprisingly, is the breach of privacy. Specifically, these features would require drivers to give up information such as where they at which times, which can be a deal-breaker for many. According to a study run by Pew Research Center, only 37% of Americans found the offer appealing, even when taking benefits into account.

Benefits

Despite these concerns, there are plenty of benefits that come with auto tech driving insurance. Primarily, the data used to create an individual’s plan would be based on their driving – and theirs alone.

Instead of filling out several complicated forms, drivers can instead give access to their data metrics, allowing insurance companies to create an accurate and detailed plan that fits the users’ needs. It sounds complicated, but in truth, it makes things simpler. 

This practice is called usage-based insurance. In practice, it works through an app on your phone, which then transmits data to your insurance company. Most companies experimenting with the tech provide rewards for using the app – rewards that get better the more you use it.

Insurtech Explained and What It Means for Car Insurance

The advent of Artificial Intelligence (AI) is changing the way many industries operate; there’s no escaping it. Even the insurance industry is facing change, thanks to the creation of Insurtech, aka Insurance Technology.

What is Insurtech? 

Insurtech is a term for a broad range of technology, all of which is applied towards the insurance industry. More specifically, it’s the use of artificial intelligence and blockchains in the insurance industry. This applies to car, medical, life, and home. 

Insurtech was created to save insurance companies money, streamline the process, and make better and customized customer service. In the last few years, the Insurtech industry has boomed. New startups and older businesses alike are competing to create the best models, and it’s altering the way we look at insurance.

What Are the Different Types of Insurtech?

There are now several different types of Insurtech, a variety formed from the many different needs of the insurance industry. Each style has a different specialty, and there’s no need for mutual exclusivity between companies and types.

  • Artificial Intelligence/Machine Learning – Used for personalized services, competitive pricing models, predictive analytics, and chatbots.
  • The Internet of Things (IoT) – IoT is used for omnichannel communication and telemetry-based insurance policies and claim processing. 
  • Blockchain – Used to prevent fraud, create smart contracts, and help to track sensitive data.
  • Robots/Drones/Etc. – Can assist in designing programs, plans, find risk factors, operate where it is unsafe for humans, and create automation.

How Does Insurtech Work?

The end goal of Insurtech is convenience and efficiency. This technology has been designed to help both internally and externally. Meaning that the insurance companies and their clients both gain an advantage through its use.

Theoretically, Insurtech will make insurance more accessible, lower costs, decrease wait times, and allow for customized claims. All while reducing payroll costs, as there isn’t a person behind all of this.

What Are the Benefits of Insurtech?

Many of the benefits for Insurtech have already been mentioned above. They include: customized insurance policies, reduced run costs for insurance companies, better claims management, and better customer-facing tech, including apps and chatbots.

What Are the Concerns of Insurtech?

As with any rising technology, there will naturally be some concerns to go along with it. The dominant concern regarding Insurtech is privacy. Consider all of the private and sensitive information that insurance companies must collect and store. The introduction of any new technology always increases concern regarding the safety of this sort of information.

 

Personalizing the Auto Insurance Industry with the Help of AI

Every day digital advancements change the way we look at and interact with the world. New ways of sharing information and collating data have made things in some ways simpler, even in complex areas such as auto insurance.

Advancements in AI (Artificial Intelligence) are the most likely to bring a great chance to auto insurance. Currently, we are looking at an insurance market that has changed very little over the years. The real question is, how much longer can stagnation last?

AI still has a long way to go before it is on par with the beings portrayed in science fiction novels. Still, there are plenty of ways for modern AI to help the insurance world. AI processes can help with pricing, handling claims, and fraud detection, just to name a few options.

The advantage of using AI to set prices comes with the ability to create individualized and personalized policies. An insurance company that employs this tactic will provide custom quotes curtailed to the clients’ needs, creating a competitive advantage. 

Artificial intelligence could easily customize these policies based on user location, marital status, family status, the likelihood of premium charges, driving history, and more. Most notably, it could also make sure of IoT (Internet of Things) to draw in more personalized data.

Given the potential power of AI, the level of personalization is limitless. The policy could go beyond personal records and look into the car the coverage is intended for. Here crash and injury data could quickly come into play, as well as automotive history.

As for handling claims? It wouldn’t take much effort to automate the handling of certain claims through the use of artificial intelligence. This would save time and money in the long run and give clients a faster customer service experience.

In turn, this would shorten the time required for settling claims. This will result in happier customers, but it will help limit fraud cases in the process. This is a vital element, as insurance fraud is currently costing companies around $40 billion per year. AI can easily detect fraudulent cases, diminish risks, and streamline the process for legitimate cases.

 

What Is Usage-based Insurance (UBI)?

The traditional model of vehicle insurance has always been geared towards rewarding good drivers. Often, discounts are applied after a length of time without any claims or tickets filed. Specific demographics are at an automatic advantage because of the law of averages surrounding age and location. These conventional stereotypes are somewhat outdated and fail to take into account how much society has changed. A male in his 20’s will pay a much higher premium than a woman in her 50’s, regardless of both having a clean driving record. It will take the male driver much longer to prove that they are competent and trustworthy enough to have a lower premium.

 

Usage-based insurance (UBI) was introduced about ten years ago. Since then, over eight million UBI insurance policies were created. The appeal of UBI is that it looks at insurance in a completely different way. Additional factors are taken into account beyond demographics, such as how many miles you drive and whether you tend to stick to speed limits. Your driving habits will impact how much you pay, in addition to your vehicle type and location. This concept can be very favorable for both insurance companies and drivers. The incentive to drive carefully means fewer claims being filed, and drivers benefit from lower rates. 

 

Depending on whether you chose the pay-as-you-drive (PAYD) or pay-how-you-drive (PHYD) package, different metrics are measured by UBI’s telematics. These telecommunication devices monitor vehicles via cellular, GPS, and onboard diagnostics and then display those movements on a computerized map. Data is also transmitted to the insurance company for review, and it is broken down into specific details, depending on whether you have a PAYD or PHYD policy. PAYD programs will usually charge a monthly fee on top of a per-mile charge. PHYD is more invasive, monitoring how you brake, accelerate, slow down, and turn corners. People who opt-in for UBI policies benefit from multiple discount opportunities. Some agencies reduce rates as a signing-up bonus. 

 

While telematics is a helpful tool for measuring real-time vehicle data, it doesn’t provide driver data. Newer iterations are software-based, saving everyone money by not having to pay for telematics devices. Mobile telematics is also more accurate because of its ability to measure distracted driving moments and offer rates based on an individual’s driving habits.

The Future of Car Insurance Beyond 2021

The last year forcibly changed industries worldwide. No industry escaped, including the car insurance industry. While much of the world is gearing up for a bounce-back, all evidence indicates that the automotive industry will be one of the last to recover. 

According to a TransUnion survey, the impacts of the pandemic will linger well past 2021 for insurance agencies worldwide. Experts are even coming to believe that these changes may be permanent on some levels.

Digital Transition

Every industry has been working hard to adapt along with the discovery of technology. The pandemic forced this transition along faster, as general populations sought digital resources for their daily needs.

Bain & Company looked into how this might impact car insurance, and they found that the digital insurance sector had grown by around 20%. While that number may balance out after pandemic measures are reduced, it is just as likely that this has become the new norm.

Furthermore, people are seeking new avenues of finding, comparing, and choosing car insurance opportunities. The call to obtain quotes through websites has been steadily increasing. The insurance companies that meet those needs are doing better than those without.

Advancing Technology

Thanks to developments such as artificial intelligence, loT, and even self-driving cars, the automobile industry has been facing many technological advancements. As these technologies become more commonplace, insurance quotes and companies will have to adjust alongside them.

Theoretically, many of the advancements being made are helping to make the driving experience a safer one. 3D-LiDAR can detect potential collisions while assisting in smaller processes, such as parking. Removing the human element helps to reduce mistakes, and thus, accidents.

However, there are certain risks involved as well. This will require any insurance agency to seek the appropriate data to keep up with risk assessment modules. 

Generational Shifts

The generation dominating the insurance world will soon be shifting. For years it had been the Boomers and Gen X providing most clients in the insurance market. Naturally, with those generations came certain expectations, experiences, and regulations.

However, the number of Millennials in the insurance market has been steadily growing. Soon, their numbers will surpass those of their elders, meaning that the market will soon shift to cater to their demands and expectations instead. 

Millennials are part of the force behind the demand for better technology and online opportunities. Insurance companies will have to make an active effort to keep up with these demands or risk falling out of practice. 

 

The Advantages of Owning an Autonomous Car

Autonomous cars used to be something we only dreamed about, much like jetpacks and robotic butlers. They have come to fruition within the last decade in various stages of assisted technology. Fully autonomous cars have yet to become mainstream due to affordability and continued testing. There are many debates about the advantages and disadvantages of this type of technology. To date, the benefits seem to be significant.

Fewer accidents have occurred with autonomous vehicles at the helm. The reason is that human beings are fallible by nature. They are prone to distraction and emotions. In addition, a human’s reflex capabilities are not as efficient as a machine’s. With spatial technology, automated vehicles can also determine the correct distance to maintain, enabling quicker reaction time if the car ahead stops abruptly or a lane change occurs. 

Traffic jams are also decreased when driverless cars are used. There have been multiple studies done on test roads with platooning exercises, displaying how automated cars fall in line with a generous space cushion between them, eliminating the ebb and regular traffic flow. Sensors allow for on-ramp entry of vehicles by making space without impeding traffic flow, in addition to recognizing construction and detours in real-time. Rubbernecking will be a thing of the past because the machine will not have the human curiosity of distraction. Shockwave jams caused by drivers tapping on their breaks and creating a daisy-chain effect will also be obsolete.

Stress-free parking is another way that autonomous vehicles will help improve our daily lives. People can be dropped off and collected at a chosen location while the car seeks out a vacant parking spot in-between. This cuts down on fuel usage and the stress that comes from being late for appointments.

As humans evolve to completely autonomous travel, they will also discover newly-found spare time to get things done, much like train or air travel. This time can be used either for work or family, without the worry of safety along the way.

Safety and accessibility is something that AI-controlled cars can bring to all Americans. There are substantial numbers of elderly and invalided citizens who cannot provide their own means of transportation. For them, automated driving will not only be a life-saver, but it will also add dignity by providing them with a sense of independence and comfort. 

 

How AI Can Improve Car Safety Features

Artificial intelligence has been in the public eye since the late 1990s. That was the moment IBM’s Deep Blue became the first computer to beat a grand-master chess champion. In 2011, many people watched the Jeopardy! episode featuring the question-answer system Watson as it beat two former champions. With all of the discoveries made since then, machine learning has helped nearly every industry on earth evolve. One of the top ways AI has served us is by helping us to be safer on the roads.

Even the safest drivers in the world are not perfect. Humans are fallible by nature, and we do not possess the reaction time of a machine. Because of this, the luxury of machine assistance elevates our abilities to not only keep ourselves safe but also those around us. We already have some car technology that does a beautiful job of this by warning us about our proximity to other drivers or objects, whether on the move or trying to park. Smart headlights help reduce dangerous situations by adjusting to the conditions in real-time. On-board diagnostics can alert us to a problem before it becomes a more serious issue, thereby saving us money and keeping us out of harm’s way.

Smart cars of today not only have sensors giving a 360-degree view outside the vehicle, but they can also monitor a driver’s body position from within the car. If a vehicle senses the driver is leaning due to sleepiness, intoxication, or a medical issue, it can alert the driver with a warning signal. OnStar systems can also be called in an emergency, and some cars make it a hands-free option.

As cars become smarter with more advanced AI systems, there will be fewer overall road accidents. The combination of artificial intelligence and the speed and distance of 5G’s reach will enable civil engineers and traffic planners to create more efficient roads from an abundance of real-time data. Traffic lights will be automated to satisfy the current traffic flow, cutting down on the risk of accidents. As more cars become fully automated, they will join the collective device-to-device communication knowing the optimal distance length and speed to avoid collisions. 

For drivers and residents, that means maximizing efficiency while also having fewer cars sitting idly in traffic, which means less pollution for the area. From a broader, public safety perspective, it means fewer road incidents to free up emergency road access, in addition to a generally safer mode of transportation.

Emerging Car Tech for 2021

The Consumer Technology Association (CTA) owns and produces the annual Consumer Electronics Show (CES). Each year, the latest and greatest technological innovations are shown to an awaiting public. The automobile industry is full of new ideas and enhancements on existing ideas, mostly centered around human safety and environmental conservation. Technology is even being incorporated long before cars leave the factory floor. Robots have begun assisting humans by working alongside them in the manufacturing sector. 

The world of technology is driven by a desire for CASE mobility: connected, autonomous, shared and electrified vehicles. This is an area that is constantly evolving. One on-going topic is the subject of self-driving cars. Autonomous taxi services will exist in the future, and companies like Waymo are moving closer than ever to perfecting safety, navigation and ride-sharing.

Much of the excitement and investment in the auto industry has turned to electrification, with some car companies claiming that in the coming years, a large percentage of their fleets will be electric vehicles or hybrid cars. The promise of cleaner air and lower carbon footprints has made electrification enticing. The industry still has a lot to work through, however, including placing more charging solutions in both cities and more rural areas.

AI-powered cockpits are going to be able to detect and protect drivers through facial recognition and palm print recognition . These will help personalize the driver and passenger experience through the same central panel, and a 3D multi-panel display and biometric-interactive system will allow the driver to control devices and see the car functions through head tilts and smiles. As 5G becomes more available, more services will become available as well to enhance the passenger experience. Some cars will come standard with connected subscriptions and infotainment packages, for example.

For people who want to have Alexa in their car alongside the Siri and Google Assistant crowds, Amazon now has Echo Audio available for in-car commands. Far-field speech recognition makes it possible for the device to recognize natural language in a noisy environment by using an eight-microphone arrangement. Passengers can check the news, weather, manage calendar events or make phone calls, all hands-free. They can even stream content from all the mainstream sources. Dashcams have been giving people peace of mind for several years. The latest iterations of this technology will offer wide-angle high-definition and be able to record and save footage if it detects an accident has occurred. Even the connection is unique, opting for a dedicated Wi-Fi to allow drivers to view a live-feed of the camera, as well as adjust settings and download or share footage.