This article was originally written by Lindsey Klevin and posted on Nationwide.com
Columbus, OH, August 29, 2024 -- Active Insurance Active insurance sounds like a new insurance workout program fad. In reality, it’s spotting risks proactively so they can be addressed before an accident happens. Active insurance uses technologies like artificial intelligence or wearables to detect risks and get ahead of unsafe problems. The concept emphasizes a shift away from the traditional focus on claims management or reactionary measures.
Nationwide has set a goal of reducing workers’ compensation claims by one million by 2030 by using insurtech solutions, like the ones developed by CompScience, which focuses on true loss prevention by obtaining and analyzing customer information quickly to prevent claims before they occur.
Artificial Intelligence can discover risks in the workplace A game changer in the world of workers’ compensation right now is CompScience and how they are using artificial intelligence (AI). Specifically, computer vision technology that has the potential to detect risk that can be addressed before an accident happens.
AI-driven computer vision technology can provide unparalleled insights into workplace safety. In this context it can identify potential hazards, ergonomic risks, forklift dangers, and environmental threats that might otherwise go unnoticed—far better than traditional loss control. This level of foresight empowers insurance professionals to offer proactive solutions to their clients.
Benefits While the costs of workplace injuries have been on the rise, technology costs have been steadily falling. Security cameras and AI development have become more accessible and affordable. This convergence of factors creates a unique opportunity to combine workers' compensation with AI.
Insurance professionals armed with AI technology can partner with their clients to create safer workplaces. By identifying and addressing potential risks before accidents occur, they can reduce the frequency and severity of claims. This, in turn, leads to lower insurance premiums, improved productivity, and a safer work environment for all.
Results CompScience has observed some positive early results, seeing a 16% decrease in overall frequency and a 23% decrease in incidence year-over-year for customers using their program. These early indicators are promising and support the approach of providing safety insights to reduce incident rates and claims.
Customers have given positive feedback, appreciating CompScience’s non-judgmental and integrative approach. Brokers can help their customers understand risks better and reduce costs, while employers and employees benefit from reduced friction and can allocate resources more effectively.
The partnership with Nationwide is driven by a shared focus on protection, aiming to engineer risk out of workplaces and create safer environments.
What’s next The focus is on continuing to improve core technology, including faster delivery of insights to customers, adding detectors, exploring new verticals, and expanding lines of business. The goal is to change the mindset of insurance buyers to embrace technology, ensuring safety and allowing people to return home uninjured to their families.
Learn more: watch Nationwide + CompScience latest fireside chat video series
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