By Miguel Alfonzo
-Insurance Commercial Director
Juan, a sedan driver, is on his way to his office and has taken the route recommended by the mapping service provided by his insurance application, one that shows him not only the best route, but also the least risky one. While waiting for the traffic light to change at an intersection, another vehicle rear-ended him. John hears the voice on his smart phone saying, “It looks like your vehicle has been in a collision. Is that correct? Are you all right?”.
Juan answers in the affirmative. The voice then asks another question: “Do you need a crane? Juan responds: “yes, please”. The voice then states, “do you need me to find you an UBER to mobilize or an ambulance?”. Juan responds: “just one UBER, please”.
This is all thanks to a new service provided by Juan’s insurer as part of its automobile policy. The insurance company has already automatically opened the reservation and coordinated the repair shop as well as the tow truck. The second driver, unfortunately, is not insured by the company. Most likely, then, once he comes out of the daze, he will have to start working out step by step what Juan automatically has ready.
This is not science fiction. These are capabilities that are available in advanced insurance markets. Because every year new automatic functions are incorporated, making insurance a business that is beginning to transform itself, from the mere acceptance of risks and payment of claims, to becoming a true ally of its policyholders, where, on the one hand, it anticipates and monitors risks and, on the other hand, when these risks materialize, helps them to recover the loss in the most efficient, expeditious and pleasant way possible.
Behind this story is not only the technology that supports it, or the knowledge to implement it, but especially a cultural change. One where the customer is truly at the center of the business and where their end-to-end experience is carefully designed to be the best. This is, in essence, the real meaning of digital transformation, a process that is happening today and very rapidly in the insurance industry worldwide.
In this context, technology companies serving the insurance market are called upon to play a key role in supporting and even leading this global transformation that is occurring at impressive speeds in the industry. This is achieved through the incorporation of products and services adapted to these new times.
All this digital transformation, certainly necessary and beneficial, is accompanied by one of the greatest risks facing humanity: cyber-attacks. It is crucial, therefore, not only that the systems quickly and efficiently address the new capabilities that are required, but that they do so while guaranteeing the inviolability and privacy of the data. This is probably the biggest challenge that software companies serving the insurance market have and must meet. An issue that is made more complex by the fact that no modern solution is a totally isolated entity, but must necessarily be interconnected with other solutions, which in turn must also be secure.
Paradoxically, this risk associated with cybersecurity itself creates new business opportunities for insurers who begin to create products for this type of situation, generating a virtuous cycle that moves the industry forward in interesting, challenging, stimulating and creative times.
