AI is Making the Auto Insurance Industry Safer and More Personalized

Digital consumerism is a trend that has been growing in recent years. With the advancements in AI and machine learning, companies in every industry can now get a more detailed picture of their customers. In retail, this means a 360° profile documenting more than just a purchase history. The one area that has trailed behind is the world of auto insurance, dragged down for decades by stagnant national brands and legacy product lines. That is all changing with the advancement of technology. Customers are demanding a personalized experience, and the auto industry is prepared to deliver.

Many things go through a person’s mind when they are in a vehicle accident. The guidebooks say to go through a checklist that includes checking yourself for injuries, checking passengers, getting everyone to a safe place, calling for help, waiting until help arrives, exchanging information with other parties, and documenting the incident. Most people, however, are not in the right frame of mind to rationally step through this list without getting emotional, which is to be expected. The concept of a clear-headed machine being able to handle all the details seems too good to be true, yet technology is at that point already.

Customers’ most significant complaint with their auto insurance providers is that claims are not processed quickly or correctly. The rates are then increased, either due to an incident or on the whole. Insurance providers have long sought ways of saving money so the savings can be passed down to customers. The issue arises when a claim comes in. Providers don’t usually hear anything until the claim. By then, claim costs have gotten out of control because expenses have already been paid. Customers could assist the providers by embracing sensor technology but choose to avoid it due to privacy concerns regarding private data and driver behavior. 

Accident Detection and Response (ADR) is the latest piece of technology that will not only save costs but will also save lives. Insurance providers can be involved in real-time at the moment of an accident through virtual sensors. Crash data is instantly read, and first-responders are contacted, if necessary. Without sharing personal data, ADR can share granular, real-time bodily injury reports with EMTs in order to get the required life-saving care. All crash data is instantly uploaded to the cloud and analyzed, generating damage and injury reports without false positives or false negatives.