Driving into the Future: Roadzen’s AI Revolution in Auto Insurance and Safety

CXOToday has engaged in an exclusive interview with Rohan Malhotra, CEO of Roadzen

  1. How does Roadzen’s AI-driven approach differentiate itself from traditional auto insurance models, and what specific technological advancements enable this distinction?

Roadzen is transforming auto insurance by integrating AI, telematics, and computer vision to create personalized insurance solutions. Traditional insurance approaches, reliant on manual processes and historical data, are prone to inaccuracies and human error. Roadzen’s use of real-time vehicular data for underwriting, claims processing, and fraud detection introduces a more dynamic, accurate, and efficient approach.

By utilizing the connectivity inherent in modern vehicles, Roadzen extracts real-time data directly from cars, moving beyond static demographic information to a more comprehensive understanding of risk based on actual driving behavior. Additionally, leveraging smartphone sensors allows for the analysis of driver behavior without additional hardware, making them more widely applicable and personalized.

A key innovation is our use of computer vision, which leverages video data from cameras installed in vehicles to assess driving patterns, predict and alert against potential collisions, and support autonomous driving initiatives. This technology not only enhances on-road safety but also plays a critical role in claims management.

Our computer vision model can proactively initiate the claims process following an accident, significantly reducing the time required to assess damage and estimate repair costs—from the industry average of six weeks down to under two minutes. This rapid assessment capability not only improves customer satisfaction but also addresses the downtime risks faced by insurers and fleet companies, ensuring vehicles return to service more quickly.

Overall, our approach represents a shift towards a more personalized, efficient, and safer insurance model that is setting a new standard for the industry.

  1. How does Roadzen’s AI-powered platform leverage telematics and computer vision to enhance road safety and reduce collisions?

At present, there are over 30 million cars on the Indian road, with WHO reporting an increase in road deaths from 11% to 13% in India, the emphasis on improving road safety is becoming crucial. Roadzen’s mobility solutions can predict and prevent accidents before they occur by using computer vision and telematics to identify potential hazards on the road, and alerting the driver before a collision event, offering a real solution to reducing road accidents.

Our system utilizes video feeds and applies multiple computer vision algorithms to accurately gauge the distance between vehicles, execute crucial decision-making such as time to collision, accident prevention, and obstruction detection.

Our technology can alert the driver approximately 3 seconds before an accident, whereas a human driver typically needs 1.3 seconds to react. With the reaction time tripled, it can avoid 60% of accidents caused by human error or distracted driving, proving to be a critical safety measure in preventing collisions and leading to safer roads.

Through telematics, real-time driving data is analyzed to create accurate and personalized driver profiles that allow insurers to price their policies better and offer usage-based insurance to their customers, incentivizing better driving, while lowering overall risk, and preventing collisions through real-time and automatic alerts.

  1. Roadzen boasts an impressive client base, including carriers, automotive companies, and large fleets. How does the company tailor its solutions to meet the diverse needs of such varied stakeholders?

Roadzen, a premier global insurance technology company, serves over 3100 clients worldwide, including enterprises and SMBs in the insurance, automotive, and fleet sectors. Central to our mission is harnessing AI to improve driver safety and streamline insurance operations. Our use of telematics and computer vision shifts insurers from demographic-based assessments to personalized driver behavior evaluations, enabling more accurate risk assessment and premium pricing.

Our technological solutions significantly expedite the claims process, enhancing customer satisfaction by reducing resolution times and setting new efficiency standards in the industry. For fleet management, Roadzen offers valuable insights into driver behavior, supports targeted training, and delivers comprehensive fleet tracking and management tools. These innovations contribute to safer, more efficient operations, lower costs, and reduced turnaround times.

As an insurance broker licensed across Asia, the EU, and the US, Roadzen enables auto insurance products with seamless technology integrations, impacting insurance distribution globally. Our open API architecture allows for instant policy pricing and issuance through partnerships with over 50 major carriers. Our unique B2B2C focus allows us to address the requirements of a diverse client base effectively, ensuring that regardless of size or sector, every client benefits from superior technological and customer experience.

  1. With the increasing adoption of AI in the insurance industry, what unique challenges has Roadzen encountered, and how have you overcome them to maintain a competitive edge?

Challenges include dealing with complex data structures, managing legacy data, and handling high-quality datasets amidst the substantial volume of generated data. It’s important to address potential issues around keeping data private, secure, and fair when using AI in insurance. Making AI open and responsible is key to being fair, reducing mistakes in AI decisions, and keeping customer information safe.

We are addressing these challenges head-on and navigating the complexities presented by the increasing adoption of AI with a principled approach. We are committed to making AI development open, fair and responsible, and we took a significant step in the direction as founding members of the AI Alliance alongside industry leaders like IBM and Meta. The alliance emphasizes our commitment to developing AI systems that are transparent and accountable, thereby minimizing errors in AI-driven decisions and guaranteeing fairness.

This adherence to openness, responsibility, and equity not only enhances Roadzen’s stature within the industry but also establishes it as a standard-bearer for the ethical and effective use of technology, ensuring a competitive advantage in the rapidly evolving landscape of insurance technology.

  1. How does Roadzen envision the future of auto insurance evolving with the continued integration of AI, mobility, and innovative technology solutions?

As cars get more connected, the era of personalized and embedded insurance solutions is upon us. This shift not only aligns with industry trends but also underscores a future where insurance standards will be completely redefined by technology. The integration of connected vehicles, AI, cloud computing, and insurtech solutions promises a safer, more efficient mobility ecosystem.

A pivotal aspect of Roadzen’s vision is enhancing road safety and fairness in insurance coverage. We are fostering a culture of responsible driving through AI and vehicle tech. We foresee a future dominated by electric, hybrid, and autonomous vehicles within a seamlessly connected ecosystem. This transformation will necessitate innovations in vehicle identity, in-car payments, entertainment, while completely reshaping business models in auto insurance.

With a focus on reducing accidents through AI and safeguarding vehicular data, Roadzen is committed to leading the charge towards a secure, forward-looking, innovative future of auto insurance and mobility.