ITECH 1100: Impact of 5G on the Insurance Industry

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ITECH 1100
Understanding the Digital Revolution

Contents
Introduction......................................................................................................................................2
Part One - Research.........................................................................................................................3
Part Two - Brainstorming................................................................................................................4
Part Three – Regulations and Ethics................................................................................................5
Part Four - Disruption......................................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
Technology keeps on changing with the need and trend of the society. Digital Revolution has
brought tremendous changes and advancement in every field. It becomes very necessary to
understand the impact of the digital revolution in society. The following report aim at
highlighting the importance of Potential Impact of 5G Internet on the Insurance Industry. The
whole report is divided into four parts: Part One - Research, Part Two - Brainstorming, Part
Three - regulations and Part Fourth - Ethics and Disruption. Every Part mentioned as the detailed
structure which enhances the knowledge of the digital revolution as well as the impact of 5th
Generation.

Part One - Research
About the 5th Generation
It is the latest fifth-generation cellular network technology aim at enhancing and providing the
greatest speed to the wireless network, capacity as well as help in managing the network
functionality and latency. 5 G helps to create the virtual networks which will increase the
performance and will help in developing new (Ge, et.al, 2015) applications and use cases for the
activities. The foundation of 5 G technology lies on the base of Long Term Evolution (LTE)
more commonly known as 4 G networks. 5 G wireless networks are made up of different parts
which transmit data with the help of radiofrequency waves. It is designed in such a way that it
supports the application of the Internet of Things (IoT). The launch of 5 G will use narrowband
techniques. It also helps to enhance the machine-type communication and IoT. It will be
transformed from one place to another with the help of cell stations. There are two categories or
services which will be provided by the 5 G which are fixed wireless broadband services and
cellular services.
The various features of 5 G are: it helps to provide a platform for the markets inclined at the
vertical alignment. It helps to deliver the services at a lower cost. With the help of network
slicing, virtual 5 G networks are deployed. It helps (Palattella, et.al, 2015) to integrate the
wireless, satellite and wired communication within the unified single architecture. It has
estimated the broadband speed of 10 Gbps which can be extended to 20 Gbps. One of the
greatest features of 5 G is that it helps to automate and maintain the behaviour of the network.
About the Insurance company
The insurance company is the companies intended to protect the property and safeguard it from
the risk of theft, damage or loss. The working of the insurance company is as follows – when
someone buys a property or any policy they need to pay premiums which are the regular
payments regularly paid. When someone claims the insurance policy, the company will pay for
the loss or damage happened. Insurance, as the name (Ansari & Riasi, 2016) suggests, is defined
as the contract or the policy which aim at providing financial support at the time of crises or
problems. The basic principles followed by the insurance company are insurable interest,

providing a good faith, indemnity, subrogation and proximate Cause. The functionality of the
insurance company are listed below:
 The insurance company helps in providing reliability and helps in demolishing the risk
and uncertainty.
 It helps to safeguard and protect financial assets.
 Insurance companies help in providing the legal requirements for the business.
 It helps in building and forming the capital and also increases efficiency.

Part Two – Brainstorming
5 G technologies hold the capabilities to change and bring revolution in the world. The impact of
the 5 G can be seen in almost every industry including healthcare, education, manufacturers and
many more. In the following section, the impact of 5 G on the insurance world is focused.
 5 G will allow the streaming and downloads to occur at a higher speed which will reduce
the burden of the desktop version. With the help of IoT, people will be able to
communicate with each other or with devices more effectively which can help insurer or
user to have important notification bar.
 It can help insurance companies to track the order (Tone, et.al, 2019) and shipments and
provide with more accurate policies and reinforcement. 5 G will enable to create more
jobs or help in calculating the risk factor and perform a task with great efficiency.
 It will also allow proceeding with faster transactions and seeking faster approval without
getting delayed. With the help of this technology, rates will be seen to cut down as it
provides a more efficient and safe environment to work on.
 Risks factors will be calculated more precisely with the help of 5 G. Insurance companies
have many sectors like automobile insurance, property insurance, property insurance,
health insurances and etc., 5 G will leave impact these factors in a different manner
providing utmost benefits and advantages.

Part Three – Regulations and Ethics
One of the impacts of the 5 G generation is that it helps in providing the high-speed network
transformation and will regulate the IoT devices effectively and efficiently. The various factors
which will make these impacts to happen or either hinders the impact are discussed below:
 5 G has been built to cover the shorter range and hence when the area will increase it will
require the new architecture and infrastructure.
 Increase and providing higher frequencies will allow faster delivery of radio waves and
this process is known as beamforming.
 Though the launching of 5 G will require high (Ansari & Riasi, 2016) capital will it be
worth for the people to invest such a high amount?
 Providing high speed may sometime allow more accesses to site which are not
appropriate to visit and hence the impact will cause
According to Lessig’s pathetic Dot Theory, there are mainly four types of constraints which help
in regulating and maintaining the human activity which is law, market, norms and architecture.
Law – National jurisdictions will help in making laws and regulation which will make difficult
for the enforcement difficult to implement.
Market – Disruptions and cost of planning will result in limited access.
Norms – It causes ethical dilemmas as at one side it offers the advantage of high speed but on
another site, it offers access to inappropriate sites.
Architecture – It offers a high amount of speed and physical access to technology.

Part Four – Disruption
The process which can change in the insurance company as a result of 5 G will be it will open
more convenient and effective methodology to precisely carry out the risk factors and will allow
connecting to IoT devices. For example, insure can command the IoT device to perform a certain
task like calculating the risk factor, mentioning the policies and notifying the insurer about the
delays or any important reminder. It can also help user and insurer to maintain transparency and
communicate effectively and efficiently. One of the greatest advantages that will be provided by
the 5 G is: different customers and individual has (Gupta and Jha, 2015) different needs and
hence it is very important to maintain the choice of services provided by the suppliers,
consumers, agents, customers and hence capability to provide the verification of claims at off-
hour will provide the greatest advantages to the customer.
Events – to claim the insurance
Activities – to verify and validate the claims of insurance at the off hours of business
Decision Points – 5 G should be implemented and regulated to bring more efficiency.
Actors – The different actor in this process are suppliers, the insurance company, customer, and
insurer. The various objects are policies and regulations etc.
Outcomes- It will help to increase the productivity and help to maintain the transparency
between the company and
Implementing these changes will help in completing the task quickly and efficiently. It will help
customer to access the claims without the need of (Tone, et.al, 2019) insurer. It will make the
working burden of insurer less by automating IoT devices. It will also help to maintain great
precisions and calculate the risks factor accurately. The following changes will bring more
opportunities and help in delivering and solving the issues at a greater pace.

Conclusion
With the help of the above report, knowledge regarding the impact of 5 G on the insurance report
is enhanced. The report aims at developing the skills and capabilities to explore the various
impacts of the ever-changing IT industry. The learning outcomes which are achieved with the
help of reports are: It helps to apply the business information for analysis of the data. It also
helped to learn the importance of emerging technology within the era of a particular industry. In
the above report various impact of 5 G technology on the insurance company and many other
conditions. It also discussed the Lawrence Lessig,s regulation which has helped to complete the
assignment.

References
Ge, X., Tu, S., Mao, G., Wang, C. X., & Han, T. (2015). 5G ultra-dense cellular networks. arXiv
preprint arXiv:1512.03143.
Palattella, M. R., Dohler, M., Grieco, A., Rizzo, G., Torsner, J., Engel, T., & Ladid, L. (2016).
Internet of things in the 5G era: Enablers, architecture, and business models. IEEE Journal on
Selected Areas in Communications, 34(3), 510-527.
Gupta, A. and Jha, R.K., 2015. A survey of 5G network: Architecture and emerging
technologies. IEEE access, 3, pp.1206-1232.
Ansari, A., & Riasi, A. (2016). Modelling and evaluating customer loyalty using neural
networks: Evidence from startup insurance companies. Future Business Journal, 2(1), 15-30.
Tone, K., Kweh, Q. L., Lu, W. M., & Ting, I. W. K. (2019). Modeling investments in the
dynamic network performance of insurance companies. Omega, 88, 237-247.