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How Data Makes the New 3P Insurance Service Model Come Alive – Part II

 
August 1, 2017

Some of the benefits insurers can experience by moving from a traditional 1P (protection) service model to a more digitally-relevant 3P (protection-prevention-preservation) model were highlighted in Part 1 of this blog series. So, how does technology act as an enabler in this transformative shift? To support the 3P model, it is imperative to present meaningful information to the end user through evaluation and corroboration of various data sources, using digital technologies. These data sources include in-house enterprise data, information from external sources using web APIs (including social media), and IoT-enabled device’s native capabilities.

Applying the 3P model: Use cases

Lets consider some examples to understand how technology provides robust support to the 3P service model.

Use case # 1 Address change: In part 1 of the blog, we discussed how a customer address change scenario can result in cross-sell or up-sell opportunities. To implement the 3P model in this scenario, one will need policy information, access to the customers public social media posts (such as Facebook posts), customers new address, and third-party API.
Lets say your customer provides the new address. Based on the address, property information can be retrieved from a third-party data source, such as a Zillow property search in the US or a Zoopla property search in the UK. If the customer has moved to a more expensive neighborhood, the analytical system can help you offer products that match the new lifestyle of the customer, along with the name of the new agent. Additionally, by correlating further information with a users public social posts, you can provide more personalized solutions.

Use case # 2 Vehicle maintenance: Similarly, in the example of vehicle maintenance, data sources such as policy information, third-party web API, and IoT-equipped car sensors can provide critical information to support the 3P model.

Use case # 3 Safe trip advisor: In the case of a trip advisor, the analytical system can warn the driver prior to a journey to prevent the possibility of accidents. In this case, too, combining three data sources — including third-party weather information — can help you alert the user of, say, snow on the way. In addition, if the vehicle IoT sensor device sends out the information that one of the tires is old and may not be able to handle snow, then the system can issue a severe alert, urging the user to take an alternate route or even postpone the journey.

Leveraging the 3P configuration model for superior customer experience
Getting the most relevant information from a 3P-based system requires a data mash-up among three different high-level data sources — organizational data (policy, claim, CRM data), third-party data (web APIs), and device native data ( video and pictures) — and IoT and wearable data.

When we combine the 3P insurance configuration with the data sources one denoting the three core attribute of insurance business (the 3P service model) and another denoting the three data sources to support the same the result is a highly effective new insurance service model. Just like the one below –

There are several innovative use cases that are under the purview of the new insurance configuration model, enabling insurers to provide improved services to their customers. In some cases, the technology support is already available, while for some others it is still in a nascent stage. With third-party cloud APIs providing many insurance-related services, leading insurance players are being forced to think outside the box and create innovative services for their customers. The possibilities are endless.

What are some use cases you can think of implementing in your organization to leverage the power of this new insurance model? Wed love to hear your ideas.

Srijeeb Roy has been leading the Java Center of Excellence of the Insurance business unit at Tata Consultancy Services (TCS) for over four years. He helps customers accelerate their digital journey through digital technology accelerators. Roy has more than 18 years of experience in the IT industry, of which more than 14have been spent working with various insurance clients. Several of Roys articles have appeared in JavaWorld.com.