5G to boost auto insurance market

Zhong An Online P&C Insurance Co aims to ride on the 5G wave to develop more innovative insurance products, improve risk assessment capabilities and deliver intelligent claims services for customers and the auto insurance sector.

After mobile internet, smart phones and 4G, 5G has the potential to be a revolutionary force in the insurance world, according to industry insiders.

With a smart 5G strategy, insurance companies could upgrade sales and service models, innovate more customized protection plans and improve their operational efficiency, said Zhong An Online.

Thanks to increased connectivity, a key area for insurers will be the streamlining of the Internet of Things, as faster speeds can alert underwriters in the event of an accident and capture vital information to speed up the claims process.

The autonomous or semi-driverless car industry is expected to see development that will transform the traditional car insurance segment, a major contributor in China’s non-life insurance business.

Shanghai-based Zhong An predicts that car insurance rates will fall in the future due to a lower number of claims, as 5G technology will generate more real-time data and reports following an accident which will allow carriers to investigate much faster and resolve claims in a timelier manner.

The insured will also enjoy faster transactions and approvals as advanced technologies will enable insurance firms to do their jobs with more certainty and more effectively than ever before. Risk calculations will be made more accurately and costs related to claims will be further reduced, the Hong Kong-listed company said.

Zhong An estimates that more policies will emerge related to various assistant systems for autonomous driving while demand for theft insurance may drop and the cover may even disappear in the future.

Meanwhile, policyholders may gradually change from car owners to auto manufacturers, technology companies and car rental companies.

In terms of risk assessment and claims prevention, the online insurer said it has allied with 16 enterprises in the fields of auto technology and auto finance to build a relevant big data system, aiming to offer partners with solutions for insurance plan pricing, data sharing and fraud.

To deliver better customer experience during auto insurance damage explorations, Zhong An said it is committed to using more equipment with 5G high definition image transmission and intelligent visual analysis functions.