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Proactive Claim Management: Telematics enables a technological revolution for car insurance

Strong automation and reliability improvement in the claim management process. Smart tags, mobile connections and Artificial Intelligence allow a clear and immediate picture of what happened.

OCTO Telematics Crash & Claims management solution provides prompt assistance to the driver: support to deal with annoying circumstances and to manage correctly the entire process. Insurance companies can perform an effective compensation control, which in turn translates into a cost reduction.

Data are collected through the installation of a simple tag behind the windshield and sent to the processing center that analyses and reviews them to understand whether a car crash actually occurred or it was a false alarm. It is a unique solution which classifies the event and provides the result. Every variation, also a small one, in the released energy is analysed, thus detecting and correctly classifying a false alarm (e.g. holes in the road or other unexpected events).

Three AI’s components enable the entire process management.

A Crash Validator starts the validation process. Effectiveness is very high: 82% of the events are classified as claims, while 18% are false alarms.

After the event is classified, a second AI engine – Claim Management Dashboard – notifies the driver. The insurance company is then no longer passive and waiting to be notified by the driver, it becomes the active party informing its customers and carrying out the control immediately after the alleged car crash. Relevant data (place and circumstances) are extracted and transformed into intelligible information to act as a “virtual witness”, through the most advanced localization technologies, including Google Street View, animated reproduction of the event, and understanding of the context in which the crash occurred. Accident dynamics are determined with a high accuracy up to 80%, whilst very serious crashes also require data from the Police and specialized consultants. Virtual witness can be more reliable than a real witness, who can fall victim of visual or psychological deceptions. The virtual witness is able to verify direct testimonies and enables correction of misleading reconstructions (sometimes even carried out by the Police), thanks to the very high frequency of information’s recording. With the use of these technologies, a virtual module representing the accident is made available for the benefit of the insurer a few seconds after the event.

A third intelligent element of the system – the Damage Evaluation Assistant – plays the role of the “virtual expert”. The dashboard shows the image of all sides of the vehicle with the various deformations produced by the crash (highlighted in red) and the list of damaged components to be replaced. In addition, the system consults a photo database of similar events to improve the settlement. The tool adds the estimated labour hours to the cost of the parts. This process is able to anticipate the quantification of damages by about 15 days compared to a manual appraisal.

Proactive car crash notification represents the most important telematic revolution for insurance. The reconstruction of the dynamics allows the assignment of responsibilities and the quantification of damages and costs. Furthermore, the OCTO Telematics’ dashboard can be integrated into the management systems of the insurance company.

As far as the privacy is concerned, tags require a connection to the driver’s smartphone with the app in the background. The system is therefore based on a collaborative and voluntary relationship on the part of the driver.

by Mauro Serena – Partner, GR ADVISORY

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