DOCO Thoughts – Claims in the Cloud

August 15, 2017

Insurance carriers that provide cover for major “big ticket” insurance policies are operating in an increasingly complex and volatile claims environment. Customers demand quicker settlements and are calling for claims systems that are flexible, secure, scalable and cloud-based. So how can innovative Claims technology help?

The rise of innovative new technology has given shape to a new potential era in insurance that could see claims adjusted in the cloud. So what would claims cloud computing look like? Before we answer that, however, some thoughts on cloud computing, which essentially uses a network of remote servers hosted on the Internet to store, manage and process data.

Within the general insurance sector we are already seeing the potential benefits, particularly in motor. In-built automobile devices are being applied to routinely transmit real-time data on a driver’s behaviour, the conditions on the road conditions and the insurer’s potential accident liability – information, which is sent to a remote cloud.

The cloud computing opportunity means that the major general insurance sector players such as Allianz increasingly understand the potential benefits and risks of cloud technology. DOCOsoft’s mission is to bring about such an understanding in the London market insurance arena.

While cloud insurance technology is not fully established in EC3, DOCOsoft believes that demand can be expected to grow rapidly over the coming years.

Forbes has reported that spending on public cloud infrastructure is forecast to reach $173 billion by 2026. The possible benefits are huge, one example being in the motor space as outlined earlier; but there are potential opportunities to, for example, improve claims products and corroborate claims. Some even speculate that the real-time aspects of cloud computing could even help to prevent accidents from happening at all. More on that below.

DOCOsoft’s innovative technology allows us to collect information from multiple sources and to use this data to understand our customers better. Cloud technology could be the same in the sense that it could enable Managing Agents to build direct connections with clients, providing them with the ability to receive real-time data automatically on a platform that would be used to evaluate risk more accurately.

Under this scenario Managing Agents would be able to improve their underwriting processes and clients could receive better value, leading to improved services and lower rates.

Claims cloud computing’s ability to provide reliable evidence, which could be used to validate claims is an exciting prospect for loss adjusters. Imagine a future where instead of depending on unclear testimonials pulled together after an accident, a Motor Syndicate could receive a constant stream of data to get to grips with what happened following an incident.  The Holy Grail would be to obtain all this data without any need for effort or intervention on behalf of the policyholder.

How might this work? One way would be through so-called in-vehicle devices connected to the cloud. In the general insurance sector this is resulting in new kinds of telemetry devices and dashboard cameras (cameratics!) that observe and report on all aspects of driving. Insurance magazines are reporting that braking habits, location and speed, and a continuous recording of the journey, can provide video evidence when an accident occurs.

Claims departments can store such evidence and automatically transmit it in the cloud. The ultimate benefit is that it will make the claims process more reliable (e.g. we have tangible video evidence), and it will be a less stressful claims experience for the client.

So is it really possible to envisage a world where cloud technology might even prevent accidents from happening? It is indeed eminently possible.

Let’s take a potential marine claim as an example. Imagine piloting a motorboat down the Thames in the summer and colliding with a tree sticking out from the side of the bank that you didn’t see. You lose control of your motorboat and, as you do, the cloud-connected technology in your vessel detects this, along with your location and shares this data to the cloud. The next motorboat to come down the same stretch of river, which utilises cloud-connected technology, will receive a warning as it approaches the obstacle and will be able to prepare and react accordingly.

This is the exciting future for claims technology in the cloud that lies ahead.