Notes
(*1) Sompo Japan launched a service that allows users to file insurance claims on their smartphones in October 2018.
Launch of Automatic Insurance Claim Calculation Service in The Event of Flooding Above Floor Level
Sompo Japan Insurance Inc.
Industry: Finance and insurance
| Publication date | January 16, 2024 |
|---|---|
| Sector | Natural Disasters and Coastal Areas |
Company Overview
Sompo Japan Insurance Inc. is a member of the SOMPO Group, which is engaged in various businesses including domestic non-life insurance business, overseas insurance business, and domestic life insurance business. As the core company of the SOMPO Group, Sompo Japan aims to contribute to the realization of a sustainable society by continuing to provide the highest quality services that contribute to the safety, security, and health of its customers.
Climate Change Impacts
Recently, Japan has been experiencing flood disasters caused by large typhoons and torrential rains every year. In the past, insurance claims for flood damage were calculated by having our surveyors visit the location of the damaged property and measure the height of the flooding. However, in the case of large-scale water damage that affects many people at once, it was difficult to visit the affected properties quickly, and in some cases it took time to pay the insurance claims.
Adaptation Initiatives
In October 2020, the company launched a new service "SOMPO Water-Related Disaster Support" in collaboration with tecunion,inc.(former e-dreamer Inc.), a system development company with expertise in the use of AI machine learning. This service calculates estimated insurance claims for accidents caused by flooding above floor level in fire insurance policies based on damage photographed by policyholders with their smartphones.
"SOMPO Water-Related Disaster Support" was developed as a new function of the "Insurance Claims Service via LINE(*1)". It can be used when a property covered by a comprehensive fire insurance policy for individuals is damaged by flooding above floor level. The policyholder enters the policy details according to the guidance, takes a picture of the damaged house or room together with a 500 to 600 ml size plastic bottle, and sends the image to the system. Based on the image, the AI will recognize the plastic bottle, measure the height of the flooded area based on its height, and automatically calculate the estimated insurance benefit (Fig.1).
Effects / Expected Benefits
Policyholders can confirm the automatically calculated measurement results and estimated insurance claims and send them to Sompo Japan, thereby enabling prompt receipt of insurance claims. Policyholders using this service have commented on the convenience of being able to file claims with only a plastic bottle and a smartphone, and have given high customer satisfaction ratings to the service, as the entire process can be completed on the same day at the earliest.
In the future, the company is considering making this service available for insurance products other than comprehensive fire insurance for individuals. The company also aims to provide a service that automatically calculates the amount of insurance claims paid after receiving an accident report and completes the payment process immediately.
