RDT Blog

    How insurance technology still needs the human factor

    30/03/2017



    We often comment in our blogs about the threat of tech startups stealing market share, but what about the threat of technology to the people who work in insurance?

    A report in The Sunday Times last month revealed that Aviva is planning to consult its 16,000 employees on whether their jobs could be automated. Those who are considered to be most at risk are involved in calculating and setting prices, assessing customer ratings, and working in call centres.

    According to research by McKinsey, the next 10 years will see up to 25 per cent of full-time positions consolidated or replaced. And research by Oxford University warned that 35 per cent of UK jobs are in danger from automation in the next 20 years – with underwriters at the top of the list.

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    RDT partners with data provider When Fresh

    23/03/2017


    Insurtech innovator RDT has announced that it has formed a strategic partnership with cutting-edge data provider When Fresh.  The pairing means that RDT's clients will soon be seeing an even more accurate picture of their household customers, and improving the customer journey at application time.

    When Fresh will supply data services to support Equator, RDT's centralised rating platform, so that insurers can learn more about their customers and their property in real time at point of quote.
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    What is RDT's role with innovation & regulation within Insurtech?

    21/03/2017

    When we describe new technology as disruptive, it’s not only because it can bring dramatic improvements and shake up an industry.  It’s also because it can challenge the legal and regulatory framework, and could undermine the rules and safeguards that protect consumers and businesses.

    Such is the caveat with Insurtech, whose breakthrough technologies include the internet of things, cloud computing, sophisticated analytics, telematics, artificial intelligence, and blockchain.  Collectively, allied to the power of big data, they provide new ways to identify, measure and control risks, which means we are now asking many questions about the boundary between public and private information.

    Big data provides a very revealing and accurate picture for underwriters.  Lawyers and regulators may contest the line between accuracy and intrusion, but there is no doubt that reliable data can protect and benefit consumers.  As a data enrichment specialist, RDT is continually finding new ways to harness and process data to help insurers and their customers, and is working very closely with insurers and regulators to develop the full potential of new technology.

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    RDT can help you embrace your Insurtech goals

    16/03/2017


    Did you resolve to embrace Insurtech this year, to reap the benefits of improved customer experience, get your products to market more quickly or simply resolve to be more efficient?

    With the first quarter of the year fast coming to a close, have you forgotten or are you ignoring those resolutions that you made at New Year?  You’re not alone, research shows that 63% of Britons have failed to keep a resolution and 66% of these didn’t manage to keep them - even for a month.

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    New module developed for our insurer hosted rating product

    14/03/2017


    Just over a year ago one of our clients asked us to create a tool that would enable them to make rapid decisions about the acceptability of specific risks. This led to us developing a new module of our insurer-hosted rating platform Equator, which we called Quick Risk Score.

     

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    Insurtech: past, present, future

    13/03/2017

     

    2016 was (among other things) a big year for Insurtech. It was a year of headline-grabbing investment in technology startups, rapid developments in big data, the rise of the internet of things and blockchain, and a host of other digital innovations that are on the brink of disrupting the insurance industry.

     

    We are seeing this trend continue unabated into 2017. Disruption and Insurtech go together and, in the slow moving world of insurance, we’ve finally reached a tipping point. Traditional insurers must now either adopt the latest technologies or watch as their businesses are eroded by fast-moving newcomers.

     

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    Car insurance premiums to rise for drivers caught using phone

    10/03/2017

    Thanks to changes to legislation that came into effect on 1 March, anyone caught using a mobile phone at the wheel will be slapped with a £200 fine and six points on their licence.

    However it’s not so clear what this will do to a motorist’s car insurance.  The AA conducted a survey of insurance companies to see how they would treat drivers who’d been caught using their phone.  Four of the 13 insurers who took part said they would not offer cover to a mobile phone offender, and would even withdraw cover for violators.

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    Insurance professionals among the most likely to make insurance claims

    10/03/2017

     

    Aggregator site GoCompare has released its study into which professions are most likely to make an insurance claim on their car insurance policies. The results aren’t too good for those of us who work in the insurance industry!

     

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    Insurtech: via technology partnership or mergers and acquisitions?

    08/03/2017

    Insurtech dominated media headlines in 2016 and became a recurring theme in research reports. This year we can expect more of the same, as digital technology continues to reshape traditional practices and attract startups and challenger brands.

    According to survey results released in January by Willis Towers Watson and Mergermarket*, insurers believe the immediate priority is to digitise their businesses as quickly as possible. Almost three-quarters (74 per cent) say they lag well behind fintech leaders and must catch up.

    Fergal O'Shea, EMEA life insurance M&A leader at Willis Towers Watson, said: "Insurers recognise the importance of building a sustainable digital infrastructure to improve customer engagement and as an essential distribution channel, which is likely to be addressed through internally driven innovation, joint ventures and M&A activity. For those that hesitate, there remains the commercial risk that they will get left behind and fail to capture future generations and younger policyholders who are more likely to engage via digital distribution.”

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    They don’t like it but not all insurers were fazed by the cut to discount rate

    07/03/2017


    At least one insurer has been able to update their rates after last week’s announcement about changes to the way compensation payouts are calculated.

    Many insurers were caught off guard by the Ministry of Justice (MOJ) announcement because the reduction in the compensation discount rate is much larger than expected. The change has angered many in the industry as it means that motorists will have to pay significantly more for their car insurance.

    However Gary Humphreys, Group Underwriting Director of Markerstudy, said that thanks to his company’s cutting edge technology, it implemented the changes as soon as they were announced.

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    Limited payments for whiplash insurance claims have been announced

    07/03/2017

     

    The Prisons and Courts Bill has been published and it contains new fixed tariffs for personal injury claims.

     

    The government had originally planned to increase the claim payments limit to £5,000 across the board.  However, the bill sees a change to this plan with a small claims limit of £5,000 for whiplash injury, but a lower threshold of £2,000 for other personal injury claims.  The bill also includes a ban on settlement of such claims without medical evidence.

     

    This bill follows a government consultation which ended on 6 January.  Justice Secretary Elizabeth Truss announced the legislation and said that the measures introduced will cut motor insurance premiums by around £40 per year.  The government is “helping to crack down on the compensation culture epidemic”.

     

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    Change to discount rate will result in rising insurance premiums

    06/03/2017

    Insurers anticipate that average car insurance premiums could increase by up to £75 a year as a result of a government ruling which was announced today.

    The Ministry of Justice (MOJ) has announced a new formula for calculating the compensation payments which are awarded to claimants with long-term injuries. Insurers had been anticipating a change to the discount rate – also known as the Ogden rate – which is applied if an insurance company makes a lump sum payment to a claimant. However, the change from 2.5% to negative 0.75% is much bigger than any insurance company anticipated. Some insurers had announced that they had provided for a discount rate move to 1.5% or 1%; with the most conservative rate move anticipated as 0.5%.

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