Four ways drones can help insurance industry

by IBO 22 Jul 2015

Four ways drones can help insurance industry

Drones look set to be the next industry disrupter, according to a leading technology consultant.

John Burgin, vice president and head of digital, Asia Pacific region, for Cognizant, says drones are capable of changing the way insurance assesses risk, processes claims, optimises manpower and reduces fraud.

He has outlined four ways the insurance industry could benefit in the latest edition of owner manager magazine NZBusiness.

These are:
  1. Improved claims efficiency and safety. Burgin said: “According to our estimates, drones can save claims adjusters approximately 40-50% on average, while boosting productivity and due diligence.”
  2. Enhanced productivity of risk engineers. A generalist rather than a specialist, can be sent to the field to assess risk, Burgin said. Drones also save time for all involved by eliminating the need for multiple site visits, for instance.
  3. Heightened customer service. Drone use enables claims get paid out in potentially much quicker times - sometimes in half the time - improving customer satisfaction.
  4. Reduced agricultural fraud. With crop insurance being the single largest financial protection for farmers, during droughts farmers can often lose money while waiting several days for an adjuster to inspect the land, enhancing the potential for fraud. Burgin said drones can be used to determine the actual cultivable land and during the claims process to understand the extent of loss and the actual yield, reducing claim processing time from days to hours.
Burgin acknowledged there were some issues around regulations and privacy concerns.

But he said carriers should begin strategizing and prototyping now so they will be ready once the regulatory environment has caught up.

Read the full article here.