Like Elon Musk, you can create a feedback loop that produces a virtuous circle and lets you dominate a section of the insurance industry.
"Although I sometimes can’t decide whether Elon Musk is the business genius of our time or is two bricks shy of a load, he sure does get a lot of key principles right."
Paul Carroll in Insurance Thought Leadership 23rd Aug 2020
Well he has confounded his critiques left, right and centre with disruptive application of technology and leveraging of data. Tesla is now making more innovative waves in both insurance and auto manufacturing.
Insurance that is cheaper for Tesla owners by analysing driving data from each vehicle.
Manufacturing? When an accident occurs, his designers learn immediately through the insurance arm what happened and can consider whether some modification to the car would reduce the damage or at least lower the cost of the repair.
It is much easier to analyse data from narrow use cases (Tesla vehicle data) like this than for the broader use cases motor insurers face with a multitude of vehicles; EVs including Tesla but also petrol heads' vehicles from small runabouts to large diesel SUVs. That is a typical problem for an insurer.
On the one hand they can leverage narrow AI apps for very specific use cases. But that's it- just limited value.
On the other hand insurers can embark on very broad AI and machine learning projects. In fact they should be if they have their eyes on remaining competitive in the mid 2020s. But that is the point- it takes a long time, much resourcing and masses of data to achieve success. In fact it generally takes longer costs more and under-delivers. But that's another story.
The masses of data is the issue here. Take a relatively narrow application- using AI and millions of pictures of road traffic accident damage to estimate the repair cost and time for a motor claim. After a couple of years it is reportedly achieving 80% accuracy but that still means 20% are inaccurate.
And a simpler matrix rules engine can deliver similar accuracy not least because so much damage is unseen. When the impact speed, vehicle model data and point of contact are added from telematics the results get better. Note that these data are structured and therefore easier to analyse.
So feedback loops work but they are neither broadly available nor ubiquitous for insurers. Or they have not been until now because so much data is unstructured.
Hidden in text that swamps an insurer every day in emails, reports, the free-form text found in industry standard documents like claims notification forms.
This is a potential competitive edge that every insurer has and disruptive insurtechs don't!
The value in this unstructured data which does, however, stay hidden from analysis and decisioning.
Why? Because it is unstructured and has been difficult to analyse.
Many vendors offer OCR- even high volume/high speed OCR. Many vendors offer analytics services galore.
But where do you find both high volume/high speed ingestion, categorisation and analysis of unstructured data to create feedback loops?
360Retrievefills this major gap. In itself that might not be an answer but 360Globalnet packages predefined business accelerators for insurers.
360Retrieve is an analytics and decisioning platform built on the ingestion of insurers’ complete data source sets, inc. the 80% typically unstructured and dormant in unprocessed documents (i.e. PDFs, emails, photo-text).
- Opening this data for analysis and dash-boarding:
- Significantly improves counter-fraud intelligence
- Surfaces hidden claims markers so allowing rapid identification, management and reserving of potential large losses
- Improves risk management and underwriting decisions based on analysis of complex claim documentation.
- 360Retrieve includes customisable rule sets, case management and RAG/Flag functions to accelerate time to value.
In fact it is exactly the feedback loop that Elon Musk has engineered for Tesla and his other disruptive ventures.
Which is why household name insurers have deployed it to manage business interruption claims. They could either recruit many more people to analyse the unstructured data and validate claims or deploy 360Retrieve.
Available today, deployable for fast time to value and tacking key challenges that remain problems without active feedback.
Want to join the feedback loop revolution?
Contact me at Mike.Daly@360Globalnet.com and
+44 (0) 7341 971132
For North America contact:
While emulating Musk won’t mean that you, too, can land spent rocket stages upright on floating platforms, insurers have a number of opportunities to create feedback loops and virtuous circles that could let them dominate a major part of the industry.