DISRUPTIVE INNOVATION
PAGE 14
iNM Volume - 9
of today and many more to come in the future
The credit cards were introduced in the 1950s
Debit cards in the 1980s and electronic
payments have grown in popularity displacing
cash and cheques
4 Insurance
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Telematics Insurance products
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The above given Telematics insurance model is
best suitable for vehicle insurance The 3rd
party data is driven by telematics devices that
have evolved to measure a variety of
additional behavioral factors from rapid
acceleration to air bag deployment Internet of
things are used to gather all possible
information about the customer
Current payment system infrastructure
through the internet is given below
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Emerging payment systems
Payment which is an important f unction in
finance has had many recent developments
that have focused on the following verticals of
payments
Making the transactions secure
Need for faster transactions
Requirement of Visibility of transactions
Reducing the cost of transactions
Making payments to different geographies
hassle free
These focus areas shows that the innovations
an in line with the hope of creating a cashless
world
:
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Risks are priced based on the
customers data submitted and some 3rd party
data including historical data and predictive
indicators Leveraging such data insurers
charge customers premiums based on their
usage of the vehicles and current driving
behaviours instead of typical fixed premiums
given the strong correlation between usage of
vehicles and risks
,
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’
,
5 Payments
A series of innovations have taken
place in the payment systems Starting from
physical transaction in the early days which
has come up to technologies like RTGS IMPS
)
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Cashless world
More cash is displaced by electronic
transactions as payments innovations are
making them beneficial for customers to use
payment cards even in small denomination
transactions With greater adoption of
electronic payments more data is
accumulated from payment transactions
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