The Future: Insurance On Demand
Imagine this – you wake up early one morning, grab your mountain bike, and strap it to your vehicle (perhaps an autonomous one) to set out for a weekend adventure. But before you leave your driveway you pull out your smartphone, pull up your insurance provider, and take out a two day policy to insure your bike. It happens seamlessly, with no hassle, letting you head out to the mountains without worrying about dinging your bike’s frame or destroying a tire rim.
Looking deeper into data will make scenarios like these a reality. There are actionable solutions in customer data, both currently collected and not, that will allow insurance to be more tailored and nuanced for every individual. Think about in terms of life and health insurance. Imagine your policy being connected to your smart fridge, your smart TV, and even your bedrooms light sensors to gauge how much you are sleeping. While privacy may seem to be an issue here, as long as providers are transparent with the consumer and there is a clear benefit they will be more likely to offer up their own data.
TransUnion’s Role in the Insurtech Ecosystem
TransUnion is a data collector and linker. They’re looking for new ways to intricately wrap extra layers of data around customer interactions to act as behavioral surrogates. This allows them to better predict what a customer is likely to do. This is nothing new for Transunion – they were into big data before big data was cool. They’ve invested 100s of millions into their technology platforms and developed data lakes so decisions can be made quicker and faster. Pushing further down this path will reveal more insights as they learn how to better knit and operationalize the intelligence blossoming in the ever expanding volumes of data flooding in.
Some of the challenges in moving forward include regulators – it’s difficult to adapt and allow wholesale changes to take place in any given ecosystem. Autonomous vehicles is showing this to be true at the moment. However, consumers are going to demand these changes to the industry. It’s an exciting time for insurance, as there are new solutions and hurdles cropping up every day. Opportunities are budding with each new challenge and ever more creative answers are going to propel the industry into a future that reshapes how we view insurance in relation to our lives.