Impact of Crowd-sourcing on the Insurance Industry

This article explores the impact of crowd-sourcing on the insurance industry and how it can benefit both commercial establishments and consumers. It discusses the different categories of crowd-sourcing techniques and the use of emerging technologies in the insurance industry.

Running head: IMPACT OF MACHINE VISION ON THE REAL ESTATE
INDUSTRY
Impact of Crowd-sourcing on the Insurance Industry
Name of the Student
Name of the University
Author Note

1IMPACT OF MACHINE VISION ON THE REAL ESTATE INDUSTRY
Table of Contents
Part 1: Research...................................................................................................................2
Part 2: Brainstorming...........................................................................................................3
Part 3: Regulation and Ethics..............................................................................................3
Part 4: Disruption.................................................................................................................4
Description of the process...............................................................................................5
Components would be affected by the change................................................................6
Reference.............................................................................................................................0

2IMPACT OF MACHINE VISION ON THE REAL ESTATE INDUSTRY
Part 1: Research
The principal purpose of this proposal is to identify the impact of crowdsourcing
technology in the insurance industry.
Crown Sourcing: It is defined as the type of process which are extensively used
both in our society as well as in commercial establishments. This sourcing models are
very much beneficial both the commercial establishments it can help them to enhance
their net profitability. There are different categories of crowdsourcing techniques which
are used in commercial establishments, this problem solving technique is very much
important to manage the network of internal as well as external stakeholders which are
maintained by commercial establishments (Sievert et al., 2017). Sourcing can be done in
two ways, such as online sourcing and offline sourcing. The use of the crowd sourcing
process in increasing in both in commercial establishments as well as in our society.
Considering the crowdsourcing process, it can be said that the complex project or
services are broken into smaller fragments. Most of the internet communities of
manufacturing industries, insurance industries are managed using the crowd-sourced
data.
Insurance Industry: It can be defined as the type of industry which saves
commercial establishments from financial losses. This industry can also be called as a
risk management industry as it can save the other industries from potential losses. There
are different categories of losses for which the insurance industry works such as the
definite loss in terms of accidental fire or occupational disease, calculable loss and
catastrophically large losses (Sen, & Ghosh, 2019). Huge amount of emerging

3IMPACT OF MACHINE VISION ON THE REAL ESTATE INDUSTRY
technologies are used in the business environment of the insurance industries such as
artificial intelligence, blockchain technology, and crowdsourcing models. The application
of these technologies are helping this industry to grow at a faster rate as compared with
the other industries. Advanced product and services are obtained from the insurance
industries these days (Tiefenbacher & Olbrich, 2015). The growth and development of
the insurance industries is very much needed for the growth and development of the
country as these industries help commercial establishments to have a competitive edge
over one another.
Part 2: Brainstorming
The internal stakeholders of the insurance industry such as the managers and the
operational team can be hugely benefitted from the use of the crowdsourcing as it can
help the organization to understand the needs and expectations of the consumers of this
organization.
Both online as well as offline crowd sourcing is very much common in different
categories of industries such as the food processing industry, telecommunication
industry, healthcare industry and insurance industry.
The crowdsourcing process as well as the Business Intelligence technology can be
very much useful in the insurance industry to understand the needs and requirements of
the consumers.
Part 3: Regulation and Ethics
The four factors which make this impact possible are discussed as followings:

4IMPACT OF MACHINE VISION ON THE REAL ESTATE INDUSTRY
o The financial plan required for the implementation of crowdsourcing must be
done in an organized manner.
o Vast range of users must be consulted in this technology.
o Confidentiality of collected data must be maintained so that the Quality of service
is maintained
o Communication issues and the ethical considerations of this model must be
addressed.
Regulations Explanation
Market The financial plan of crowed sourcing must be understanding the
market position of the organization.
Law Confidentiality of the collected data should be maintained.
Architecture Wide range of users must be considered before taking any business
decision.
Norms Ethical and the communication issues of the stakeholders must be
addressed
Table 1: Framing of the identified factors with the regulations of Lawrence Lessig
(Source: Created by the author)
Part 4: Disruption
The supply chain of the insurance industry can be significantly improved using
the crowdsourcing model. The explanation of each of the category are presented below.
 Events: Each of the events of the production of this insurance industry such as
insurance interest, utmost good faith, warranties, proximate cause, return of
premium can be improved using crowd sourcing.

5IMPACT OF MACHINE VISION ON THE REAL ESTATE INDUSTRY
 Activities: The complexities in terms of understanding the expectation for the
consumers can be improved using the crowdsourcing.
 Decision Points: The decision points of the organization can also be improved
using the crowdsourcing.
 Actors: The internal employees of the organization can be understood using
crowd outsouring model.
 Outcomes: The business scale of this organization can also be improved using
crowdsourcing.
Description of the process
The supply chain of the insurance industry can be improved significantly after the
usage of the crowdsourcing. Most of the large insurance activities of this industry can be
significantly improved using the crowdsourcing process. The funding of the economic
activities of this organization can be enhanced using crowdsourcing process (Paluch &
Tuzovic, 2017). The different components of the term life insurance can be improved
using the crowdsourcing process. The different plans and the need for changing each of
the plans can be understood in an organized way using the crowdsourcing process. The
endowment plans, retirement plans, child plans, and Unit Linked Plans can be improved
using the crowdsourcing process as well. The different categories of insurances such as
health insurance, auto insurance, health insurance and life insurance can be improved
using the crowdsourcing process. It can also be said that the disability insurance packages
by the insurance industries can also be enhanced using the crowdsourcing process. The
changes required in the car insurance packages can also be identified using the
crowdsourcing process (Balan, 2016). The different terms of this industry such as the

6IMPACT OF MACHINE VISION ON THE REAL ESTATE INDUSTRY
decreasing terms as well as the level terms can be identified in an organized manner
using the crowdsourcing process.
Components would be affected by the change
The decision making of the insurance industry can be improved of the
management team of the insurance industry decides to incorporate crowd sourcing
process in their business environment. It can be said that the engagement of the
consumers of this organization can also be improved using the crowd sourcing
(Nuruzzaman & Hussain, 2018). It can be said that the decision making of the business is
directly associated with the strategies made in the corporate meetings of the insurance
industry (Arganda-Carreras et al., 2015). The communication issues between both the
internal as well as the external stakeholders of this organization can be improved using
the crowd sourcing process as well (Alt et al., 2018). The different components of the
insurance organization such as the understanding the valuable form of marketing can be
done using crowdsourcing as well. Mobile crowdsourcing can also be improved using the
crowdsourcing process as well (Morschheuser, Hamari, & Koivisto, 2016). The point of
sale marketing as well as the data crowdsourcing can have a positive impact on the
decision making activity of the insurance industry. Thus, it can be said that
crowdsourcing can have a huge impact on the growth and productivity of insurance
organizations.

7IMPACT OF MACHINE VISION ON THE REAL ESTATE INDUSTRY
Before the change
Figure 1: Identification of the issues before the change
(Source: Created by the author)

8IMPACT OF MACHINE VISION ON THE REAL ESTATE INDUSTRY
After the change
Figure 2: Addressing of the issues using crowdsourcing
(Source: Created by the author)

IMPACT OF CROWD-SOURCING ON THE INSURANCE INDUSTRY
Reference
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Crowdsourcing Practice in Romania?. In International Conference on Marketing
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System Sciences (HICSS) (pp. 4375-4384). IEEE.
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industry: How do individuals perceive smart wearables offered by insurance
organization?.

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IMPACT OF CROWD-SOURCING ON THE INSURANCE INDUSTRY
Sen, K. C., & Ghosh, K. (2019). Designing Effective Crowdsourcing Systems for the
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