Four areas the place digital twins might assist insurers
In this series, we looked at the value that twin digital data can bring to the insurance business. Specifically, I see four main areas where insurers could use digital twins to make significant improvements.
Insurers, especially retail customers, have made good strides in leveraging data for better distribution. They have focused on making a digital copy of the ledger and creating digital twins of customers based on their online activity, search habits, and where they shop.
While this better understanding of the customer journey helps insurers be more efficient and contextually relevant when selling, leading insurers go a step further. You want to offer one-click purchases and an omnichannel ecosystem so customers can seamlessly switch between channels.
But there are additional opportunities for insurers to improve customer service and cross-selling. The more you know about the customer on the phone, the better you can provide targeted advice and support.
Imagine, for example, that you had digital twins not only for the customer, but also for their insured assets and for external events that affect their decisions or their assets. You could take these threads together into a much broader view and use that to deliver a superior experience.
In underwriting, real-time streaming data could provide a more nuanced understanding of risk and improvements in pricing. Leading insurers are also committed to providing real-time risk prevention and risk-DNA-based insurance to their customers in an effort to be a more holistic provider of protection for their customers, rather than just a company that pays you when something happens.
While it can be a challenge for commercial line insurers to get a more homogeneous data set for all customers, I think the benefits will be worth it. We’ve seen it before with employee compensation, with the integration of payroll and ERP helping carriers understand the changing workforce and associated premium changes, and reducing the need for premium audits. I recommend commercial insurers to research this in terms of coverage (property, liability) and sector (energy, construction, shipping).
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Within the four walls of an insurance carrier, there is an essential opportunity to increase efficiency and improve decision-making by adding connected tools across the company. Accenture’s operations business has demonstrated this over the years in corporate functions such as finance, human resources, and procurement. Now is the time to turn attention to the more traditional core functions of the insurance industry: sales support, underwriting, claims and back office administration functions.
When creating a digital twin of the company, two advantages quickly emerge:
- Automation options come with the traditional analysis of keystrokes and process steps.
- Secret Service Opportunities come see how you can use this data differently. This is likely where the greater value is coming from.
As an example, imagine you could transform a digital mailroom that scans and stores digital copies of physical documents into something that sorts and automates work radically differently depending on the type of document and the customer’s position in the transaction process.
More efficient and faster claims processing is another area where I see tremendous opportunities to leverage digital twins. We are already seeing that leading insurers are looking for real-time coverage optimization, an integrated recovery infrastructure, and the use of Human + AI to improve the employee and customer experience.
For example, imagine you offer personalized car insurance and one of your customers is involved in an accident. Think about the insights you might gain if you had access to:
- Telemetry data shows what was happening to the car at the time of the accident – the way the wheels were turning, the speed of the car, and how hard the driver was braking.
- Weather conditions explaining the driving conditions at the time of the accident.
- Information about the driver how well they slept last night, and whether they were distracted by something they saw or talked to a passenger.
- Service data how long it takes for the car to be repaired, how long the waiting time for the parts you need and whether you are connected to your own service fulfillment supply chain through your network partners.
The more you dive into the details, the more opportunities you will see to leverage digital twin data across your insurance business.
In our final post in this series, I’ll show you how you can use intelligent digital twins to get a better overview of your business.
To learn more about the technology trends expected to affect insurers, read our report: Technology Vision for Insurance 2021
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