5G is coming, empowering the Internet + remodeling of various industries

In the era of digital economy, the application of emerging technologies represented by 5G communication, big data, cloud computing, Internet of Things, blockchain, artificial intelligence, etc., has revitalized a large number of data elements originally dormant in the depths of various industrial fields, and rapidly revolutionized the ecological development of various industrial fields. Taking the innovative application of 5G technology in the insurance industry as an example, the application of "5G+" technology catalyzes the comprehensive innovation of traditional insurance pricing, risk control, claims and other business functions.

I. Insurance Pricing

The so-called insurance pricing, in essence, is the use of the law of large numbers and probability statistics, through the observation of a certain type of risk units, to estimate the probability of loss, so as to formulate reasonable premiums, to maintain the stability of the insurance company's operations, to ensure that the insurance fund is sufficient to cover the insured's losses. Therefore, a large amount of insurance case data becomes an important influencing factor in setting reasonable insurance pricing.

But with the rapid application of emerging technologies such as 5G communications, the use of data mining has become increasingly sophisticated, and the control of risk has become increasingly precise, thus making dynamic pricing and personalized pricing of insurance possible.

Taking engineering insurance pricing as an example

In the rapid application of 5G communication technology, the Internet of Everything is no longer a dream, and insurance companies are not only able to determine rates through historical data on various engineering risks, but also through real-time collection of related engineering risk data, such as the operation of engineering machinery and equipment, the construction site data of the relevant construction links, the attendance data of the project manager, the project supervisor and other personnel. It can also form more accurate, reliable and personalized reference data for the risk pricing of various types of engineering insurance through real-time collection of relevant engineering risk data, such as operation and running data of engineering machinery and equipment, construction site data of relevant construction links, attendance data of project managers, engineering supervisors and other personnel, and credit performance data of the main bodies of relevant construction activities.

On the basis of big number calculation and probability statistics, the deeper and refined data analysis and mining provided by the application of 5G communication technology can, on the one hand, effectively improve the insurance company's control of risks and facilitate the formulation of insurance premiums in a more reasonable manner; on the other hand, it also empowers the innovation of the traditional insurance business pattern, transforming the passive insurance service into the proactive one, and providing more personalized and customized insurance services, thus improving market competitiveness. This will improve the competitiveness of the market.

Two, insurance risk control

Risk control management has always been one of the important management contents of the modern financial industry. From the traditional risk control model of the insurance industry, its reliance on past historical data is extremely strong, which leads to the following two limitations of traditional insurance risk control:

1. Data authenticity. In the traditional insurance risk control mode, due to more offline management links, human risk factors are higher, the authenticity of the relevant insurance data is difficult to effectively ensure that there is a certain degree of falsification.

2. Data lag. Under the traditional insurance risk control model, the risk control model is based on a large amount of historical data, static data base, there is a certain lag, can not reflect the existing risk situation in real time.

At present, as the market risk environment is becoming increasingly complex, the traditional insurance risk control model is limited by the authenticity of the risk control data, lagging, there is an urgent need to real-time, dynamic, intelligent risk control model transformation and development.

5G communication technology provides the possibility for a new insurance risk control model: the application of 5G communication technology with high-speed and complete transmission, low communication delay, and large transmission capacity makes the interconnection of everything possible, and the historical data under the traditional insurance risk control model will gradually be replaced by a large amount of high-frequency and multi-dimensional dynamic real-time data, which will become a reliable basis for determining and controlling risks.

Under the new insurance risk control model, the insurance risk control service will not only stay in the insurance and claims process, but also go deeper into the risk management of the post-policy process. Taking the engineering insurance field as an example, under the application of 5G communication technology:

1. The engineering machinery and equipment will instantly transmit the equipment running and operation data to the equipment management center through 5G sensors, and make early warnings on the illegal or dangerous operation, so as to effectively avoid the operation and running risks of the engineering machinery and equipment.

2. Construction personnel scaffolding, formwork, tower cranes and other high-altitude operations, through 5G monitoring camera technology to provide real-time on-site construction images to the management of the station, and through AI intelligent analysis to realize the abnormal early warning, to support the relevant management personnel in a timely manner to carry out hidden danger investigation and remediation, to avoid the occurrence of risky accidents.

In the future insurance protection services for engineering quality, safety, equipment and property safety, the above 5G technology applications will become an important means for insurance companies to effectively control management risks.

Three, insurance claims

In the insurance claims process, "claims are difficult" and "claims are slow" have always been the consistent perception of many insurance users. But in fact, according to the first half of 2019, the CBIRC's research data for a number of insurance companies show that the claim recovery rate of 13 insurance companies is above 97%. Therefore, the problem of "slow claims" is an important issue that affects the quality of insurance claims service.

From the insurance claims process, from the occurrence of accidents to the success of the claim, usually through the insurance report, survey and determination of damage, signing and reviewing the claim documents, adjusting review, approval and payment of the complex process; during the period of time, the need to collect a large number of evidence, fill out a large number of forms, the process is complex, cumbersome and high cost rate. In particular, traditional insurance claims survey and damage determination, investigation and evidence collection, claims review rely on offline personnel, consuming a large amount of manpower, time costs, but also for consumers to bring bad user experience.

In addition, insurance claims involve policyholders, insured persons, insurance companies, public adjusters, and vendor personnel. With traditional offline claims processing, there is a potential for misrepresentation, misrepresentation, and omission at every step of the process.

5G communication technology's ultra-fast rate, great traffic volume, ultra-short latency and low power consumption make the interconnection of everything possible. Through 5G network technology, insurance adjusters can make remote claims through high-definition video, photo uploads, etc., and even make intelligent claims through AI intelligent risk control models. On the one hand, it eliminates the need for users to wait for on-site claims and provides high-quality and timely insurance claims service; on the other hand, it also effectively avoids the risk of moral adverse selection in offline manual processes.

The 5G era has arrived, and the application of 5G technology will inject innovative vitality and service value into the insurance industry, re-enabling insurance pricing, risk control, claims and other business processes.