Page 114 - August 2022 Issue 609
P. 114
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Search Engines Algorithms of
and Insurance’s Business Models
Written by: Kareem M. Awad (Senior Property Underwriter – gig Insurance Egypt)
There is no denying the fact that search aims to save money through reduced over-
engines are effectively filters for the vast head costs, increase transparency, reduce
amount of data on the internet allowing inefficiencies as well as avoid the conflict
visitors to easily and quickly access mate- between insurance carriers and their poli-
rial that is actually of interest or value cyholders in case of claims as It considered
through high-quality websites without hav- risk-sharing network where a group of
ing to sift useless or irrelevant web pages associations or individuals share into the
based on collecting data using specific pool which gathering through social media
automated programs. Complex algorithms there sit these pool with their premiums
are used by search engines to evaluate together to insure against a risk rather than
websites and web pages and assign them traditional insurance model.
a rating for relevant search terms which In addition, it will return any remaining
are closely guarded and changed on a funds at the end of a coverage period to the
regular basis. With the growing aware- pool’s members based on their contribution
ness about the internet in today’s as well as the global trends and in case of the claims amount exceed the premiums and
of globalization, digitalization and innovation which reflect on its investments available in the pool it will be indemnified from
the people think to realize the importance of search engines the reinsurer to cover the difference. The management and
in their daily life which make Google becoming one of the handing include no cost other the fixed fee to the manage-
most famous reactions to almost every question or inquiry. ment and the cost of reinsurance and other administrative
Nowadays with the use of rapid speed on complicated tech- expenses. The Insurtech and Search Engines provide the
nology and artificial intelligence in the Search engines mech- suitable infrastructure technology to gather the pool members
anism and algorithms which allow to access for the people’s who have the same significant risk through the social plat-
personal data, habits and behaviors including adequate con- forms for example as well provide the suitable techniques for
trol of privacy which reflect to process these data for the mar- premium calculations and payment gate.
keting and advertising through the difference services Another one model is Digital Consortiums And Price
providers it seems clear through the collaboration between Comparison Website, one of the main challenges in the
Search Engines and Social Media’s algorithms collect data insurance industry is the competition within the players in the
in a systematic and sequential manner then analyze it by for- market which led to market volatility and sustained low rates
mulating the likes and interactions users give to some con- for the underwritten which effect directly on the bottom line
tent. Furthermore, the websites and social media track the for the insurer’s result, therefore the Insurtech through plat-
user’s activity history by viewing every post have liked and forms provide suitable solutions and business models that
commented on, every link have clicked, in order to show ads allow the insurers to setup pools and consortiums to arrange
that really work for them or recommend places to visit or suitable covers for specified industries or sectors include the
shop according to users’ interests. mechanism to distribute the premiums and claims between
These algorithms and programmers can help businesses to the participants and calculate the market share of each play-
build brand awareness, increase click-through rate, and er to determine the authority and percentage to share the
improve sales for all industries and services for all sectors, earnings and loss.
therefore the insurance industry take the initiative to allocate Therefore, the business leaders of the industry have to get
their strategies, products with the new technology infrastruc- the benefit of the new technologies and Algorithms to provide
ture to recommend insurance products for the users as well new techniques that assist the clients to choose the best risk
as create new business models and applications by using carrier by using the filter and compare quotes based on
these algorithms which is now trending the in several mar- price, features, reviews and other criteria which required the
kets like the Indian and USA Markets. engagement for almost players in the market to participate
Peer-to-Peer, It’s considered one of the main successful busi- for such initiative after matched with specific criteria which
ness models for the SME’s and Motor business lines as it including but not limited to brokers and insurers.
2022 (¢ù£°ùZG) ÜGB - 609 O~©dG - ájOÉ°üàb’G ¿É«ÑdG 114
