Technology in business has always promised efficiency. Trying to do things faster has some consequences especially in the insurance world. There is a move to make insurance so easy that insurers don’t know what they are insuring and insureds don’t know what they are buying. Finding the right mix of automation and humanation is the problem most insurance companies are looking to InsurTech experts to solve. This is what is driving the Digital Transformation Revolution within the insurance industry. Modern insurance companies need to consume data differently and their customers need to find a new way to feed them their data. We at InsurEco call this mythical animal “DataPig.” Right now the largest corporations are getting fat on Data and their shareholders are the ultimate beneficiaries. There is a better way to feed companies your data and this future will soon be seen as the way.
We have become a microwave lifestyle society. We want everything right now and we don’t want to do much to get it. Insurance is following this trend without realizing the repercussions. For an insurance customer they are told they can save money in a few minutes. For the insurance professional they are told to answer a few questions to obtain quotes for their clients. Insurance companies are afraid of the consumer mob and are either turning a blind eye to the exposure or just hoping the risk doesn't catch up. There is a solution though and what some might consider to be a shortcut is actually the right way.
Data privacy and security will be all you hear for the next several years. Giving insurance companies a better way to access the data they need determine risk and premium is one of the promises of current technology. It’s all about the ABC’s - API’s, Blockchain, & Cloud. If you want to get some better understanding of Blockchain here are a few articles I have written (It starts off with A Case for An Immediate use of an Insurance Policy Blockchain.). Taking control of your data will become big business in the near future. We try to help insureds do that with InsureBio. There are other participants in the insurance ecosystem that need to come to this party which will truly revolutionize the industry.
Insurance companies need to start sharing data immediately. No they don’t need to share their company secrets, but they should be sharing or at least making it easier to access data across the supply chain. Reducing fraud benefits every single insurance company and policy holder. Siloed customer data allows for bad customers to hide insurance claim history. Bad actors can manipulate data to hide the actual risk from the insurance companies which corrupts the insurance pool.
By creating a reciprocal data repository the entire insurance industry can instantly improve efficiency and customer experience. According to the Edelman Trust Barometer Research Team the insurance industry is the least trusted. It is time to rebuild this trust by creating a way that protects privacy and allows for transparency between all of the participants. This new way of insurance starts by giving the customer control of their data and letting them see what data insurance companies are using, just like banks and lenders do with credit scoring. Feeding the insurance DataPig is a major collaboration effort we are working on at InsurEco. I realize that the industry might not be ready to change, but the consumer is. Let’s demand change that benefits us all and gives us the real efficiency we are looking for which is saving time but not at the expense of accuracy.
If you are an insurance professional and want to be part of the DataPig project Sign Up Here
Next week I want to try and dive into the New California Consumer Privacy Act. If you have some questions about it let me know. Have a Great Week!
