Abstract
The insurance industry has evolved as a commodity rather than a service. Evolution of the digital platform, almost all the companies are in a rush to offer customized and personalized services. At the bottom of the hierarchy, being the client of the service grabber, many times we noticed the huge loss in terms of payment of premium against the benefits. In the digital era, artificial intelligence becoming more and more deeply integrated in the all types of industries, insurance executive must now understand the factors that pops up an alarming notification regarding the changes expected in the sector of insurance industry. The focus should be how artificial intelligence reshapes the premium policies, claims, and distribution of services. A common policy and culture should be inculcated among the executives of insurance industry to change the perspective in such a way that it should then be a common strategy and common performa to be executed to reframe the future of insurance industry. Artificial intelligence (AI) and business intelligence (BI) are tightly coupled with different business, home, and with society that changed living pattern of an individual. Usage Internet of Things (IoT) devices made a drastic change in the behavior of an individual in their day-to-day pattern. Many open source protocols emerged nowadays that help in evaluating humongous data generated during the activities or via different devices. The change in the information technology environment, that is designed for the purpose of remotely provisioning scalable and measured resources using cloud computing helps in ubiquitous access of data. Also, hiring the resources like platform and services helps in increasing the security and robustness using the cloud computing. In this chapter, we are trying to focus upon the issues and challenges being faced by the client, by offering and proposing a new model that helps both clients to have more realistic and convincing premiums and the industry to have better risk assessment of the vehicles. In this proposed model, the locational data of the user of the vehicle are tracked, stored, and analyzed using algorithms of artificial intelligence to derive the profile of the user, which also helps the user to identify his reputation and risk in the system. Four core trends like explosion of data from connected devices, increased prevalence of robotics, open source data systems, and cognitive technologies, coupled with artificial intelligence, will reshape the insurance industry within a couple of years. Herewith, we are proposing a mobile application that helps in calculating the usage of a vehicle using GPS tracking devices attached with the vehicle, which then being used to generate the risk and usage factors of the vehicle. This factors then shall be utilized by the concerned agencies to calculate the next premium of an insurance. Enough information is being generated and stored that are being used by the model for the further processing. Many artificial intelligence algorithms help in building risk profile and then analyzing the profile that will used to refine their ability to issue or renew the insurance policy.
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Pandya, S., Vaidya, N.M., Undavia, J.N., Patel, A.M., Kant, K., Shukla, A. (2023). Model for Mobile App-Based Premium Calculation for Usage-Based Insurance (UBI) of Vehicles. In: Singh, J., Das, D., Kumar, L., Krishna, A. (eds) Mobile Application Development: Practice and Experience. Studies in Systems, Decision and Control, vol 452. Springer, Singapore. https://doi.org/10.1007/978-981-19-6893-8_12
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DOI: https://doi.org/10.1007/978-981-19-6893-8_12
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