Monthly Archives: December 2020

The Future of Auto Mobility and Insurance

Mobility has taken over every industry and has dipped its proverbial toes in the auto insurance industry as well. With GPS and accelerometers as high-tech accessories, mobile technology for the automotive industry too has come a long way and has many more miles to go. In an age where digitization and mobility is one of the bare necessities, most auto insurance providers are lost under heaps of paperwork. That’s the reason why the concept of auto mobility has shifted its focus to the insurance industry.

A combination of mobility solutions – telematics, analytics and communications, has eased the burden for auto insurers through information on driving style, collection of the same, analyses and reports that benefits all the stakeholders.

User-Based Insurance (UBI)

Insurance providers struggle with allocating premium amounts for their clients. Despite their best calculations, they have incurred losses. Traditionally, insurance companies calculate premiums based on driving records, vehicle use, previous claims, insurance scores based on credits and so on. Policyholders believe that these premiums are usually a fixed value.

Telematics technology will change the face of auto insurance through the usage-based insurance (UBI) pricing system where clients pay as per their usage, driving behavior that is. Pay-as-you-drive gives clients and insurers the freedom to calculate premiums based on not just driving records and vehicle usage but actual or real-time driving information.

Real-time Information

Telematics can calculate every minute detail of the client’s driving style, including every hard brake, rapid acceleration, parking style, etc. Analytics will amalgamate, analyze and interpret this data, simplifying it to understand the driving patterns of the client and the risk(s) involved. This driving information will be shared with the insurance provider who can use the same to allocate the insurance premium amount for the respective client.

Vehicular insurance companies have realized the difference that real-time information makes in processing claims. With the ability to capture real-time data in the form of images, videos, driving information, etc., there will be adequate information to process a claim or to decide the insurance amount for a client. It will eliminate the possibility of modified data and increases the accuracy of information analyzed.

Time and Efficiency

Time is everything. Waiting for weeks for insurance agencies to process a claim can be painstaking. Insurance companies will soon provide every client a more personalized and expedited service. Mobile devices will enable evaluation of claims or consultation with clients in their comfort zone. In the case of an accident, real-time data can be captured in the form of videos or images, eliminating the possibility of improper claims or incomplete information, which can prove to be a loss for both parties. Automation will reduce paperwork and redundancy. At the same time, it will increase efficiency and accelerate processing of claims.

Management of Data

With the reduction of paperwork and introduction of technologically advanced analytics frameworks, managing vast quantities of data has become a child’s play. Analytics use complex algorithms and mathematical equations to organize, analyze and interpret huge volumes of information. The ability to retrieve relevant information instantaneously and accurately will save a lot of man-hours.

Beyond Insurance

Mobility solutions for auto insurers come with additional services such as roadside assistance in case of an emergency, geo-fencing for parents to monitor their teenager’s driving, customer engagement to ensure the loyalty of the client, driving suggestions and other customizable options. Insurance companies will be able to go beyond their regular services for the client’s convenience.

Challenges of Telematics

However, there are a few concerns with telematics being used by insurers. Standardized regulations on data capturing and its process is yet to be determined. This raises concerns for loss of privacy or misuse of data. The other concern is when the client wants to switch to another insurance provider. The new insurer might not accept their driving data as the method of data collection is different. This could result in the client losing his benefits and has to start from scratch.

Nonetheless, telematics technology is relatively new and is yet to take over the market fully. Like any new technology, there will be glitches which will be fixed in due time. These challenges will not be an obstacle for auto mobility to be integrated with insurance, as the pros of auto mobility outweigh the cons. Gradually all insurance providers will largely depend on mobility solutions in order to develop their business and will become inevitable for auto insurance to use.

How To Determine If Your Tattoo Artist Is Using The Best Tattoo Ink

Even though some people might wish you hadn’t, you finally decided to get your first tattoo, and you are really excited because you have done your due diligence. You’ve research the artists in the area, inspected & checked out all of the parlors you had in mind, and you even got a great design in mind. But there’s one problem – how do you know if your chosen artist is using the best tattoo ink in the business?

If you’re anything like most people who hear about the varying scale of tattoo ink quality, you’re now fairly deflated and unsure about moving forward with your tattoo. First of all, don’t feel so bad. As it turns out, most tattoo artists agree that one issue they often notice among clients is a lack of knowledge about ink quality. You’re not alone in missing this one detail, but in the grand scheme of things, it’s a pretty big deal. Still, don’t get discouraged.

As with any artist, he or she may learn their trade with what may be deemed a rudimentary tool, slowly becoming more adept at their craft. As time goes on, their talent dictates that their tool of choice improves in quality. Ask a concert violinist what type of violin he or she plays, and you shouldn’t be surprised to hear that it didn’t come from an online wholesaler. The best tattoo artists are the same. They look for the best tools so that when someone sits in their chair, the client knows this is exactly the place they needed to be.

But if you’re starting with tattoo number one, you might not know how to breach this topic. The best advice on this feeling – dispel it immediately. You’re talking about embarking on a journey that will leave you not only with a lifelong piece of body art, but you’re also placing a foreign substance into your body. You owe it to yourself to get the skinny on whether your tattoo artist has the best ink at their station.

How do you find this out? Here are a few tips:

Learn About Industry Favorites & Standards – Do some research and find which ink brands and ingredients tend to be used the most.

Ask Artists What They Use and Why – Everyone tradesman chose his tools for a reason, and so goes the journey of the tattoo artist. This is where your research pays off.

Read Industry Information on Ink Rankings – Check out any published materials on tattoos, artists, and even ink models. Also, check out the FDA for quite a lot of info on tattoo ink & your health.

Don’t Buy The Hype – Hyperbole is a sure-fire way to know if someone might be pulling your leg. You want information, not a sales pitch.

The best tattoo ink may be hard to peg down considering you have to first define what ‘the best’ really means. Moreover, keep in mind that the type of ink to be used by your artist can depend on your tattoo. It may seem like a drag to go through all of this, but the best tattoo artists out there are always happy to share their knowledge and talk shop with someone who is genuinely interested in it. If you aren’t feeling that vibe, you need to find another artist.

Why The Travel Industry Is Recession Proof

With gas prices rising, one might think that getting into the travel industry is counter intuitive. Are people going to travel less because of the rising ticket prices?

The answer is absolutely not! Why, because even in the face of rising gas prices and airline price wars, people still NEED to travel. People need to travel for work, for graduations, to see family, and despite the fact that we may be in a recession, people STILL want to take vacations to get away from the stress of it all! So, the travel industry is still a great industry to be in as a travel agent. What’s more, the travel industry is a 7 Trillion dollar industry! That’s larger than any other consumer market in the world! Now, where do you think the travel industry is going these days?

That’s right the internet! If you are going to start a travel agency the best is to go with an internet based travel agency. It gives you the opportunity to work from home, building this business part-time or full time, it’s less expensive to get started (usually around $500 or less), and the overhead is just pennies a day. If you think about how much it takes to start most franchise business it’s tens to hundreds of thousands of dollars, and the overhead is usually hundreds to thousands a month, not to mention advertising costs.

Starting an online travel agency is easy, and marketing and advertising can be very simple and inexpensive if you know the proper tools use. So if you are thinking about building a business in the travel industry, don’t shy away just because of the recession. In fact, if you can be successful in a recession, just think what will happen when the economy picks up again.

Information Feedback Loops In Stock Markets, Investing, Innovation And Mathematical Trends

It seems that no matter how complex our civilization and society gets, we humans are able to cope with the ever-changing dynamics, find reason in what seems like chaos and create order out of what appears to be random. We run through our lives making observations, one-after-another, trying to find meaning – sometimes we are able, sometimes not, and sometimes we think we see patterns which may or not be so. Our intuitive minds attempt to make rhyme of reason, but in the end without empirical evidence much of our theories behind how and why things work, or don’t work, a certain way cannot be proven, or disproven for that matter.

I’d like to discuss with you an interesting piece of evidence uncovered by a professor at the Wharton Business School which sheds some light on information flows, stock prices and corporate decision-making, and then ask you, the reader, some questions about how we might garner more insight as to those things that happen around us, things we observe in our society, civilization, economy and business world every day. Okay so, let’s talk shall we?

On April 5, 2017 Knowledge @ Wharton Podcast had an interesting feature titled: “How the Stock Market Affects Corporate Decision-making,” and interviewed Wharton Finance Professor Itay Goldstein who discussed the evidence of a feedback loop between the amount of information and stock market & corporate decision-making. The professor had written a paper with two other professors, James Dow and Alexander Guembel, back in October 2011 titled: “Incentives for Information Production in Markets where Prices Affect Real Investment.”

In the paper he noted there is an amplification information effect when investment in a stock, or a merger based on the amount of information produced. The market information producers; investment banks, consultancy companies, independent industry consultants, and financial newsletters, newspapers and I suppose even TV segments on Bloomberg News, FOX Business News, and CNBC – as well as financial blogs platforms such as Seeking Alpha.

The paper indicated that when a company decides to go on a merger acquisition spree or announces a potential investment – an immediate uptick in information suddenly appears from multiple sources, in-house at the merger acquisition company, participating M&A investment banks, industry consulting firms, target company, regulators anticipating a move in the sector, competitors who may want to prevent the merger, etc. We all intrinsically know this to be the case as we read and watch the financial news, yet, this paper puts real-data up and shows empirical evidence of this fact.

This causes a feeding frenzy of both small and large investors to trade on the now abundant information available, whereas before they hadn’t considered it and there wasn’t any real major information to speak of. In the podcast Professor Itay Goldstein notes that a feedback loop is created as the sector has more information, leading to more trading, an upward bias, causing more reporting and more information for investors. He also noted that folks generally trade on positive information rather than negative information. Negative information would cause investors to steer clear, positive information gives incentive for potential gain. The professor when asked also noted the opposite, that when information decreases, investment in the sector does too.

Okay so, this was the jist of the podcast and research paper. Now then, I’d like to take this conversation and speculate that these truths also relate to new innovative technologies and sectors, and recent examples might be; 3-D Printing, Commercial Drones, Augmented Reality Headsets, Wristwatch Computing, etc.

We are all familiar with the “Hype Curve” when it meets with the “Diffusion of Innovation Curve” where early hype drives investment, but is unsustainable due to the fact that it’s a new technology that cannot yet meet the hype of expectations. Thus, it shoots up like a rocket and then falls back to earth, only to find an equilibrium point of reality, where the technology is meeting expectations and the new innovation is ready to start maturing and then it climbs back up and grows as a normal new innovation should.

With this known, and the empirical evidence of Itay Goldstein’s, et. al., paper it would seem that “information flow” or lack thereof is the driving factor where the PR, information and hype is not accelerated along with the trajectory of the “hype curve” model. This makes sense because new firms do not necessarily continue to hype or PR so aggressively once they’ve secured the first few rounds of venture funding or have enough capital to play with to achieve their temporary future goals for R&D of the new technology. Yet, I would suggest that these firms increase their PR (perhaps logarithmically) and provide information in more abundance and greater frequency to avoid an early crash in interest or drying up of initial investment.

Another way to use this knowledge, one which might require further inquiry, would be to find the ‘optimal information flow’ needed to attain investment for new start-ups in the sector without pushing the “hype curve” too high causing a crash in the sector or with a particular company’s new potential product. Since there is a now known inherent feed-back loop, it would make sense to control it to optimize stable and longer term growth when bringing new innovative products to market – easier for planning and investment cash flows.

Mathematically speaking finding that optimal information flow-rate is possible and companies, investment banks with that knowledge could take the uncertainty and risk out of the equation and thus foster innovation with more predictable profits, perhaps even staying just a few paces ahead of market imitators and competitors.

Further Questions for Future Research:

1.) Can we control the investment information flows in Emerging Markets to prevent boom and bust cycles?

2.) Can Central Banks use mathematical algorithms to control information flows to stabilize growth?

3.) Can we throttle back on information flows collaborating at ‘industry association levels’ as milestones as investments are made to protect the down-side of the curve?

4.) Can we program AI decision matrix systems into such equations to help executives maintain long-term corporate growth?

5.) Are there information ‘burstiness’ flow algorithms which align with these uncovered correlations to investment and information?

6.) Can we improve derivative trading software to recognize and exploit information-investment feedback loops?

7.) Can we better track political races by way of information flow-voting models? After all, voting with your dollar for investment is a lot like casting a vote for a candidate and the future.

8.) Can we use social media ‘trending’ mathematical models as a basis for information-investment course trajectory predictions?

What I’d like you to do is think about all this, and see if you see, what I see here?

Future Of Blockchain Teclnology In Insurance Industry – Blockchainerz

What is Insurance?

Insurance is a method for security from money related loss. It is a type of risk management, principally used to support against the danger of an unexpected misfortune.

An Insuree may report a misfortune or a claim to a broker, and with the required data submits it to the Insuring specialists, specifically the Insurer, if applicable, the Reinsurer. The claim accommodation is confirmed by a receipt to the Insuree.

From that point onward, the Claims Agent may ask for extra data for the claim, through an outer source. After these step, if every one of the conditions is fulfilled, the claim is affirmed, and the installment is started via the Insurer’s Claim Agent. Insurance is revealed to a variety of fraud schemes. From sharing insurance plan after divorce to disguising medicinal diagnoses. Then how blockchain helps in this field?

Blockchain technology future is viewed as the greatest of an image of the fourth industrial revolution and a potential disruptor for some organizations and businesses including the insurance field. Even the technology is still in its an early phase, it has just demonstrated what it can do: streamline printed material, increment information security and spare organizations cost by removing tedious cases forms.

Recap On Blockchain Technology:

  • The blockchain is an extensive, decentralized advanced record that is dependably up to date and holds a record of the considerable number of exchanges made. Blockchain systems are intended to record anything from physical resources for electronic money and are openly accessible for all the included gatherings to see.

  • After check process, the block of a transaction is time-stamped and added to the blockchain network in a straight sequential request. The additional block is then connected to previous blocks, making a chain of blocks with data of each transaction made ever in the history of that blockchain.

How Blockchain Technology Can Benefit The Insurance Industry:

Blockchain was acquainted with the majority through Bitcoin, however, its applications go past simply recording of electronic cash. It can likewise empower inventive and troublesome changes in different industries other than finance, for example, insurance business model. Other than recording electronic cash and financial transactions, this technology can became part of insurance, healthcare project.

  • An insurance company mainly manages various procedures consistently that includes an insurance contract to be signed. The processes can be anything from getting an insurance policy, rating a customer, claiming or managing a fraudulent policy.

  • Since blockchain technology deals with smart contracts then, specialists from insurance industry claim this technology can possibly change the way insurers deal with customers. Insurance industry depends on lots of data much like various industries, blockchain may well end up empowering all or most data-related transactions for this industry through smart contract.

  • In this, the smart contract can encourage, execute, and enforce the negotiation or application of an insurance contract through blockchain tehcnology. Insurance contracts are unpredictable and hard understand, so the smart contract can empower productivity in the insurance esteem chain wherever time, exertion or money is spent to affirm information before preparing transactions.

OR

Key Points Of Blockchain Which Impacts On Insurance Industry:

1. Improve trust:

There’s an emergency of trust in the financial services industry. Despite the fact that the big banks are the main point, the disintegration of trust impacts all businesses. An absence of trust, high expenses and inefficiency of the insurance business all plays a part in the extraordinarily high levels of underinsurance. Blockchain technology encourages building trust of customers since it gives straightforwardness and transparency.

2. Enhance efficiencies:

While changing insurance agencies or healthcare suppliers knows how wasteful the information section process is to get coverage or care started. Moreover, customers have an undeniable dread of losing control over their own information. Blockchain gives an answer for drive efficiency and security that would enable the individual information to be controlled by an individual while confirmation is enrolled on the blockchain.

3. Enhanced claimsprocessing through smart contracts:

The insured and the insurer each as of now have issues that blockchain and smart contracts could resolve. Insured people commonly discover insurance contracts long and mystifying, while the insurance agencies are battling a various fraud which is extraordinary. Through blockchain and smart contracts, both of them would profit by overseeing claims in a responsive and transparent way. And it begins with recording and confirming contracts on the blockchain. At the point when a claim is submitted, the blockchain could guarantee that only substantialor valid lone cases are paid. But when network founds multiple cases are cliams submitted from same accident then blockchain could trigger installment of the claim with no human mediation, thus its improves speed of resolution for claims.

4. Fraud detection and prevention:

A standout amongst the most convincing reasons insurance agencies ought to research blockchain is its capability to detect & prevent fake or illegal activity. An expected 5 to 10 percent of all cases are fraud. Blockchain technology’s decentralized store and it’s historical record which can autonomously check clients, policies, and transactions for authenticity. Each insurance agency needs to make a move today to make sense of how blockchain innovation can affect the way they work together today and later on.

This is the manner by which blockchain technology will help or takes a part in an insurance industry in future. In the event that you need to refresh to concepts or want to read latest news related to Blockchain & Cryptocurrency Technology at that point remain associated with us.

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