There is a fundamental shift happening in the insurance industry moving from restoration (returning the policyholder to the same financial position they were in before the loss) to prevention (preventing the damage from happening in the first place). Technology has been developed, and is still being developed, that will help policyholders prevent losses from ever happening in the first place.
Agents and brokers need to be adding services for their clients that will help them prevent losses.
Munich Reinsurance America has unveiled its Smart Mobility Program offering a toolbox of solutions to address the complex issues surrounding commercial auto losses and to help reduce or avoid the risk of collision for commercial fleets. The Smart Mobility program includes LossDetect™ (patent pending), an automated text-mining tool that analyzes automotive claims data and recommends potential solutions.
Through my involvement with Matteo Carbone and the North American Connected Insurance Observatory, I’ve had the opportunity to meet Michael Scrudato, Senior Vice President, New Strategic Markets and Bruce Weisgerber, Mobility Solutions Center Leader, New Strategic Markets and get an early look at their LossDetect platform.
A Look at LossDetect
The Smart Mobility Program integrates technology and risk management solutions based on historical loss analysis to offer an innovative approach to the safety challenges faced by commercial fleet owners. Their LossDetect tool helps identify ways to increase safety and reduce collisions for fleet owners and their employees. They also partner with leading-edge companies in telematics and crash avoidance to offer potential solutions to fleet owners. According to the National Safety Council, in 2017 there were over 40,000 people killed on U.S. roads.
The LossDetect portal analyzes unstructured auto claims data using machine learning techniques to determine causes of loss and matches that with one or several of the Smart Mobility Program tailored solution(s) to assist in helping to reduce auto collisions:
- Collision Avoidance – Utilizes aftermarket collision avoidance products that are designed to warn of driving behaviors that could lead to an accident such as speeding, tailgating, lane departures, etc.
- Telematics – Captures vehicle performance and driver characteristics via an in-vehicle OBD device or a mobile app to offer operational insights (e.g., driver distraction) and savings via a reporting dashboard.
- Driver Coaching – Customized training focused on improving individual driver safety.
- Advanced Fleet Monitoring – Solutions that provide personal driver feedback and fleet assessment using advanced analytics to help monitor training and driver performance and benchmark against internal/external performance analytics.
The Smart Mobility Program is available to the insurance company and broker clients, public entities, and small to mid-size companies with commercial fleets. The LossDetect portal can be accessed by all commercial fleet owners as well as Munich Reinsurance America customers.
To receive a LossDetect analysis of claims data for one of your commercial auto fleets, click on the blue LossDetect Analysis button. You will be taken to the LossDetect submission portal. Contact information is required so they know where to send the final report. Required fields in the Excel file you will upload include:
- Vehicle Identifier
- Accident Description (1-2 sentences of description is optimal)
- Total Incurred
- Date of Occurrence
An Excel template is available for download. There is a maximum of 10,000 records per file. Larger data sets can be analyzed; however, the file must be emailed to be processed.
I assume some of you are suspicious of the motivation of Munich Re and what they will do with this data. First, no data identifying the insured is required. They are continuing to improve the algorithms that analyze the accident description to provide the resulting recommendations. The more data they have, the better the algorithm can become.
The resulting report is not just a sophisticated claims analysis tool. It quantifies loss cost savings and provides specific recommendation on loss mitigation tools that can be employed based on the type of claim. The recommendations could be driver training or adding rear backup camera when vehicles are replaced. The potential claim savings by adding these loss mitigation tools are estimated and can provide an opportunity to discuss how their investment in vehicle safety technology will reduce claims and thus their total cost of insurance.
This is an early example of loss mitigation tools that will help your organization have a different relationship with your clients. As some of the protection provided moves from restoration to prevention, these types of tools (and the resulting potential revenue) are essential for you to begin experimenting using.
What new tools are you finding helpful as you engage with your clients?