Current Situation
By leveraging digital twin technology, evidence-based insurance enables continuous monitoring and analysis of a company’s risk exposure, providing up-to-date and accurate information for insurance evaluation. With insights gained from real-time risk assessment, insurance premiums can be dynamically adjusted based on the company’s actual risk profile. This ensures fair pricing and encourages risk mitigation practices within the enterprise. Through digital twins, this use case enables proactive risk management by identifying potential risks and vulnerabilities in real-time. This proactive approach helps companies mitigate risks, enhance safety measures, and potentially reduce insurance costs over time.
Goals and Objectives
Evidence-based insurance relies on robust data collection and analysis to inform insurance policies. It empowers insurers to make informed decisions by utilizing evidence-based insights and reducing reliance on traditional, static risk assessments. Insurers aim to generate profitable underwriting results and maintain a sustainable financial performance. This involves setting appropriate insurance premiums based on risk assessments, managing claims effectively, and achieving a favorable loss ratio. Insurers strive to provide excellent customer service, meet policyholders’ needs, and ensure a positive customer experience. By delivering on their promises, insurers aim to retain existing customers, attract new ones through positive word-of-mouth, and build long-term relationships.
Technology Deployed
IoT
Big Data
Mobile Technologies
5G
Cloud
Advanced analytics
Cognitive technologies
Next-gen security
Digital platforms
Use Case Summary
Evidence-Based Insurance — Enterprise is a data-driven approach that leverages digital twin technology to continuously monitor a company’s risk exposure in real time. This use case enables insurers to dynamically adjust insurance premiums based on the actual risk profile of the company, promoting fair pricing and incentivizing risk mitigation practices. By making informed decisions through evidence-based insights, insurers can proactively manage risks, enhance customer satisfaction, and maintain profitability while adapting to market trends and regulatory requirements.