Artificial Intelligence Meets the Insurance Industry

Artificial_Intelligence_Meets
Through machine learning and deep learning, artificial intelligence (AI) can meet industry expectations.

As artificial intelligence becomes more deeply embedded in the insurance industry, industry leaders must position themselves to respond to the changing business landscape. Every day,various factors contribute to the industry's changing landscape. AI is becoming more assertive in insurance, particularly in cost savings, customer service and experience, product innovations, and marketing initiatives.

With this understanding, market leaders can develop appropriate revenue-generating strategies, embrace new AI horizons and implement them to develop the perspective required to succeed in the futuristic insurance industry.


AI-related Action for Better Forecasting

Among insurance executives who have already invested in AI, many new businesses are reaping significant benefits. They have gained the advantages of using AI to improve the customer experience (CX). According to a Deloitte study, approximately 65% believe AI assists in decision-making. Furthermore, according to PwC specialists working with insurers on AI initiatives, businesses are increasingly using AI to:

  • Customize products and services for consumers and other businesses
  • Establish a loyalty framework and upsell among customers
  • Automate more data from social media and other sources for better forecasting
  • Automate more aspects of claim processing
  • Improve fraud detection methods
  • Beginwith customer segmentation to target

As a result of these findings, AI investments will benefit insurance companies more than ever before.


How Insurers Can Accelerate AI

The following points can help insurance businesses accelerate AI and achieve faster ROI.


Centralize Business Functionalities

Deploying AI into the process aids in the automation of resources, the alignment of tasks, the use of analytics to nurture data, the improvement of governance, and the scaling of solutions.


Focus On Data

AI in insurance aids in collectingand combining relevant data from consumers and future customers. AI-assisted data collection is faster and more accurate at the appropriate time. In this manner, marketers can plan for future marketing campaigns that will increase engagement and bring in more money.


Reduced Risks

AI is the most effective at reducing business risks. Also, AI works best for insurers to minimize risks such as data breaches, fraud detection, correct cost segmentation, and budgeting hazards.


Some Insights into AI Investment: A Key Decision to Make!

As technology continues to empower the insurance sector, let's take a look at how other insurance companies are investing in AI so that you may make the vital decision to incorporate AI into your organization as soon as possible.

  • 65% of businesses found better ways to establisha customer experience base with the help of AI post-2020
  • 49% of businesses have improved their internal decision-making process after adopting AI
  • 56% of businesses were able to reinvent their products and services through AI
  • 47% of businesses operated their business functions more efficiently with AI and increased productivity.
  • 45% of insurance businesses saved substantial costs using AI algorithms
  • 35% ofinsurance businesses have successfully reduced risks associated with their businesses after the deployment of AI.
  • 53% of insurance companies have seen a significant revenue increase by incorporating AI into their processes.

These figures are based on a Deloitte’s research study conducted by insurance industry specialists worldwide.


Some Possible AI Risks for Businesses

Every technology helps businesses gain benefits, but technology installation has to be done correctly to avoid consequences. As a result, insurance companies must exercise caution when implementing AI in their business processes. The possibility of faulty AI implementation could lead to:

  • New cyber hazards
  • New privacy threats
  • Workforce shortages
  • New legal liabilities and reputational risks
  • Customer distrust
  • More complex business modules

The lack of AI abilitiesismore challenging, which can affect the entire business sphere, especially the functions that are associated with AI.

Spotlight

NEST Scientific USA

Found in 2009,Wuxi NEST Biotechnology is a worldwide manufacturer of plastic laboratory products. State-of-the-art manufacturing equipment is used in an expansive manufacturing site based in Wuxi, China. Decades of plastic-injection molding experience allows us to maintain the highest quality and performance standards expected by the hospitals, research institutions and industrial/clinical laboratories that we serve. NEST offers a large variety of cell and tissue culture treated products, qPCR and PCR consumables, and general lab supplies. NEST has launched over 200 plastic consumable products for cell culture, molecular bislogy, immunoassays, liquid handling and storage. NEST products have been exported to North America, Europe, Japan, Korea, India and other countries.

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The Influence of AI on Insurance

Article | September 22, 2022

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Time to Overcome Barriers in Your Decision-Making with Data Analytics

Article | May 20, 2022

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This will assist them in strategizing based on continuous data insights from various sources for any given initiative. Sales Sales leaders can also improve how they spend their time by using data analytics to create more accurate sales forecasts. However, the question is, how will they do it efficiently? CRM software is the answer and solution to them. The software performs best because of its analytical capabilities in combination with data visualization, particularly predictive functions. It generates enormous amounts of data on customer interactions, which can then be used to inform decisions. You can assemble relevant data and use it to make some decisions, such as: Acquisition and management of leads Lead segmentation Sales funnel optimization There is enormous value in optimizing productive data by focusing on prospects likely to become loyal customers. Operations Utilizing data analytics in insurance boosts insurance operations. Small changes help to align a wide range of core processes. You can access data obtained from operations, observe key aspects of the overall processes, and make appropriate decisions. A targeted, timely, and data-driven approach will help you make decisions about these key functions, which can lead to business growth in the long run. Bain's research in 2019 reports that seventy insurers were polled. They say data analytics will reach 58% in the marketing funnel and 45% in business operations. Begin with Overcoming Barriers to your Decision-Making Process Use Data to Identify Customer Patterns Information from data can identify patterns. As mentioned above in the sales section, CRM's predictive modelling and the popular Google Analytics' descriptive overview are the two best platforms for identifying customer patterns. What is the best way to get pertinent data? Data mining is the answer to it. Do you want to know about it? Then read data mining for pattern evaluation now! 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NEST Scientific USA

Found in 2009,Wuxi NEST Biotechnology is a worldwide manufacturer of plastic laboratory products. State-of-the-art manufacturing equipment is used in an expansive manufacturing site based in Wuxi, China. Decades of plastic-injection molding experience allows us to maintain the highest quality and performance standards expected by the hospitals, research institutions and industrial/clinical laboratories that we serve. NEST offers a large variety of cell and tissue culture treated products, qPCR and PCR consumables, and general lab supplies. NEST has launched over 200 plastic consumable products for cell culture, molecular bislogy, immunoassays, liquid handling and storage. NEST products have been exported to North America, Europe, Japan, Korea, India and other countries.

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Integrity Marketing Group, LLC | December 05, 2023

Integrity Marketing Group, LLC a leading distributor of life and health insurance, and provider of wealth management and retirement planning solutions, today announced it has partnered with Hemati Insurance Agency, an independent marketing organization based in Austin, Texas, and led by Eric Hemati. Financial details of the partnership were not disclosed. "Eric comes to Integrity with two decades of experience and a deep understanding of this business, but he knew there would be more opportunities for growth through our partnership — he wanted to help even more people and offer the strongest support and products possible to his agents," explained Bryan W. Adams, Co-Founder and CEO of Integrity. "We created Integrity precisely to give leaders, like Eric, the meaningful foundation and cutting-edge resources they need to take an agency to the next level. Now that Hemati Insurance Agency is partnered with Integrity, it can tap into an amazing network of expertise and experience. 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Integrity has also created the dream team of partners in the insurance space — these are the leading players in the industry who have founded some of the country's most successful agencies. The opportunity to tap into their wisdom and collective experience is a game-changer for any entrepreneur. My agents are thrilled to utilize Integrity's best-in-class products, especially LeadCENTER and MedicareCENTER, which take the guesswork out of prospecting and allow us to help more people faster and more efficiently. This partnership is a major milestone for our business and significantly accelerates our growth. With Integrity's support, our future looks exceptionally promising. [Source -PR Newswire] By developing thoughtful solutions and best-in-class products, Integrity offers resources that make an agent's job more effective and fulfilling. Its end-to-end insurtech platform offers proprietary access to groundbreaking products such as Ask Integrity, a revolutionary AI-powered and voice-activated customer relationship management technology, and LeadCENTER, an on-demand platform which instantly connects qualified leads anywhere in the country with agents ready to serve. Integrity partners receive additional world-class resources and support, including strategic leadership guidance, richly insightful data and analytics, and ongoing product innovation to keep agents at the forefront of industry developments. Integrity empowers agents to reach more families through its holistic approach to life, health and wealth solutions. The Integrity partner network, comprised of many of the country's leading insurance and financial services companies, recognizes the growing need for cross-industry initiatives to offer comprehensive planning and services to every consumer. This prestigious group is collaborating on best practices and innovations that benefit all stakeholders. Their ingenuity and commitment help more Americans plan for the good days ahead. About Integrity Integrity, headquartered in Dallas, Texas, is a leading distributor of life and health insurance, and provider of innovative solutions for wealth management and retirement planning. Through its broad partner network of agents and advisors, Integrity helps millions of Americans protect their life, health and wealth with a commitment to meet them wherever they are — in person, over the phone and online. Integrity's proprietary, cutting-edge technology helps expand the insurance and financial planning experience for all stakeholders using an omnichannel approach. In addition, Integrity develops products with carrier partners and markets them compliantly through its nationwide distribution network. 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PR Newswire | October 12, 2023

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NAIC Members Approve Model Bulletin on Use of AI by Insurers

NAIC | December 06, 2023

The National Association of Insurance Commissioners (NAIC) Membership voted to adopt the Model Bulletin on the Use of Artificial Intelligence Systems by Insurers during the 2023 Fall National Meeting. The bulletin reflects the work of the NAIC Innovation, Cybersecurity, and Technology (H) Committee, chaired by Maryland Insurance Commissioner Kathleen A. Birrane. Michael Conway, Commissioner of the Colorado Division of Insurance, and Doug Ommen, Commissioner of the Iowa Insurance Division, are co-vice chairs of the committee. "This initiative represents a collaborative effort to set clear expectations for state Departments of Insurance regarding the utilization of AI by insurance companies, balancing the potential for innovation with the imperative to address unique risks," said Commissioner Birrane. As the insurance sector navigates the complexities of AI, the NAIC's Model Bulletin on the Use of Artificial Intelligence Systems by Insurers provides a robust foundation to safeguard consumers, promote fairness, and uphold the highest standards of integrity within the industry. [Source -PR Newswire] The H Committee, comprised of representatives from 15 states, began drafting the bulletin in 2023 with the goal of establishing comprehensive regulatory standards to ensure the responsible deployment of AI in the insurance industry. The bulletin addresses critical issues related to the usage of AI, such as potential inaccuracies, unfair biases leading to discrimination, and data vulnerabilities. While not a model law or regulation, the AI model bulletin serves as a guiding document, fostering uniformity among state insurance regulators regarding expectations for insurance carriers deploying AI. The bulletin comprises four key sections, each addressing crucial aspects of AI usage by insurers. It emphasizes the importance of responsible governance, risk management policies, and procedures to ensure fair and accurate outcomes for consumers. The bulletin reminds insurance carriers that decisions impacting consumers that are made or supported by advanced analytical and computational technologies, including AI, must comply with all applicable insurance laws and regulations, including unfair trade practices. The bulletin also sets forth state insurance regulators' expectations on how insurers should govern the use of such technologies by or on behalf of the insurer to make or support such decisions, including the creation and implementation of a written AIS Program, commensurate with an assessment of the risk in accordance with the guidelines established by the NAIC's 2020 Principles of Artificial Intelligence, and to ensure that decisions impacting consumers made or supported by AI are accurate and do not violate unfair trade practice laws or other applicable legal standards. The bulletin also advises insurers of documentation that a state Department of Insurance may request during an investigation or examination. The initial draft was presented to the working group on June 29, 2023, and subsequently exposed for public comment periods, allowing for extensive input from industry stakeholders, consumers, and legislators. The process involved two exposure periods, with the first public comment period ending on Sept. 5, 2023, and the second ending on Nov. 6, 2023. The review process also included in-person comments during the 2023 Summer National Meeting in Seattle, WA, and during the 2023 Fall National Meeting in Orlando, FL. Significant updates were made to the model bulletin based on the feedback received. These updates addressed concerns raised during the review process, including a shift in focus toward outcomes, revisions to key definitions aligned with National Institute for Standards and Technology (NIST) standards, and updates to language on third-party contracting and testing and validation protocols. Commissioner Birrane expressed gratitude for the collaborative efforts of the H Committee, drafting groups, and all stakeholders involved. The completion and adoption of the model bulletin mark a significant step forward in adapting regulatory frameworks to the evolving landscape of AI in the insurance industry. About the National Association of Insurance Commissioners As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.

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Insurance Technology

Integrity and Hemati Insurance Agency Join Forces to Strengthen Expansive Services for Agents

Integrity Marketing Group, LLC | December 05, 2023

Integrity Marketing Group, LLC a leading distributor of life and health insurance, and provider of wealth management and retirement planning solutions, today announced it has partnered with Hemati Insurance Agency, an independent marketing organization based in Austin, Texas, and led by Eric Hemati. Financial details of the partnership were not disclosed. "Eric comes to Integrity with two decades of experience and a deep understanding of this business, but he knew there would be more opportunities for growth through our partnership — he wanted to help even more people and offer the strongest support and products possible to his agents," explained Bryan W. Adams, Co-Founder and CEO of Integrity. "We created Integrity precisely to give leaders, like Eric, the meaningful foundation and cutting-edge resources they need to take an agency to the next level. Now that Hemati Insurance Agency is partnered with Integrity, it can tap into an amazing network of expertise and experience. Our partners are positioned to help one another expand and thrive, which stems from our philosophy that a rising tide lifts all boats. I can't wait to see the 'Integrity Effect' of powerful growth make an impact on Hemati Insurance Agency — this business will be one to watch!" After spending several years in the field, Hemati brought a valuable agent perspective when founding Hemati Insurance Agency in 2003. The company provides clients across the country with life and health insurance products. In order to help protect more families, Hemati focuses on optimizing the agent experience by constantly expanding its support, mentorship and technology offerings. This commitment led to a partnership with Integrity. "Integrity is a force multiplier! Its vision of bringing together world-class services, technology and leaders to elevate agents' potential is an approach I resonated with immediately," shared Eric Hemati, Principal of Hemati Insurance Agency. Integrity has also created the dream team of partners in the insurance space — these are the leading players in the industry who have founded some of the country's most successful agencies. The opportunity to tap into their wisdom and collective experience is a game-changer for any entrepreneur. My agents are thrilled to utilize Integrity's best-in-class products, especially LeadCENTER and MedicareCENTER, which take the guesswork out of prospecting and allow us to help more people faster and more efficiently. This partnership is a major milestone for our business and significantly accelerates our growth. With Integrity's support, our future looks exceptionally promising. [Source -PR Newswire] By developing thoughtful solutions and best-in-class products, Integrity offers resources that make an agent's job more effective and fulfilling. Its end-to-end insurtech platform offers proprietary access to groundbreaking products such as Ask Integrity, a revolutionary AI-powered and voice-activated customer relationship management technology, and LeadCENTER, an on-demand platform which instantly connects qualified leads anywhere in the country with agents ready to serve. Integrity partners receive additional world-class resources and support, including strategic leadership guidance, richly insightful data and analytics, and ongoing product innovation to keep agents at the forefront of industry developments. Integrity empowers agents to reach more families through its holistic approach to life, health and wealth solutions. The Integrity partner network, comprised of many of the country's leading insurance and financial services companies, recognizes the growing need for cross-industry initiatives to offer comprehensive planning and services to every consumer. This prestigious group is collaborating on best practices and innovations that benefit all stakeholders. Their ingenuity and commitment help more Americans plan for the good days ahead. About Integrity Integrity, headquartered in Dallas, Texas, is a leading distributor of life and health insurance, and provider of innovative solutions for wealth management and retirement planning. Through its broad partner network of agents and advisors, Integrity helps millions of Americans protect their life, health and wealth with a commitment to meet them wherever they are — in person, over the phone and online. Integrity's proprietary, cutting-edge technology helps expand the insurance and financial planning experience for all stakeholders using an omnichannel approach. In addition, Integrity develops products with carrier partners and markets them compliantly through its nationwide distribution network. Providing best-in-class service to our clients and consumers is at the center of Integrity's holistic approach to life, health and wealth protection. The company and its partners focus on helping families and individuals prepare for the good days ahead, so they can make the most of what life brings. About Hemati Insurance Agency Hemati Insurance Agency has rapidly become a key and influential player in the insurance industry. The Austin, Texas-based agency focuses on empowering its agents, thereby ensuring the best possible service for its clients. Hemati Insurance Agency consistently provides in-depth training, resources and support designed to help its team of hundreds of agents work more efficiently and effectively. It is also committed to delivering a wide range of personalized solutions that help protect more than 20,000 American families annually.

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Risk Management

INSURICA and Ascend Join Forces to Revolutionize Financial Operations in the Insurance Industry

PR Newswire | October 12, 2023

INSURICA, one of the largest privately held independent insurance agencies in the nation, has selected Ascend, the leading financial operations automation platform, to advance their commitment to innovation, elevate the client experience, and drive increased efficiency across their operations. As the industry's sole provider of financial operations automation software, Ascend will streamline INSURICA's billing, carrier payables, and financing workflows. By integrating Ascend's transformative technology, INSURICA aims to enhance their customer-centric approach while empowering their teams to dedicate more time to building valuable client relationships. We are constantly re-evaluating the way we do business, striving to deliver exceptional customer service and optimize our operations, said Kylie Hubbard, Director of Innovation at INSURICA. Ascend is a groundbreaking solution that has truly revolutionized our post-placement lifecycle for policies. With seamless software and automation, we have significantly improved customer service and streamlined our processes. Ascend's solution automates all accounts receivable (AR) and accounts payable (AP) tasks in the agency bill workflow. From invoicing to premium financing to carrier payables, Ascend simplifies the complex tasks associated with premium and commission management. This unified workflow provides real-time transparency and accelerates the speed at which INSURICA can bind and manage policies, all while prioritizing a superior customer payment experience. We founded Ascend with the goal of partnering with leaders in the insurance distribution channel to optimize operational efficiencies and elevate the client experience through automation, emphasized Andrew Wynn, Co-CEO of Ascend. INSURICA's commitment to innovation aligns perfectly with our mission, and we are honored to collaborate with them in pushing the insurance industry forward. About Ascend Ascend is the industry-leading provider of financial operations automation software, dedicated to modernizing the insurance industry's financial infrastructure. Ascend is the only solution designed to enhance agency management systems by streamlining the insurance life cycle for agency bill processes. By eliminating manual back office accounting tasks, improving cash collection cycles, and providing a best-in-class customer experience, Ascend significantly increases the productivity, efficiency, and profitability of agencies and brokerages. To learn more about how Ascend can transform your business, please visit www.useascend.com. About INSURICA Placing over $1 billion in annual premiums for our clients, INSURICA is among the 40 largest insurance brokers in the United States and is currently the 24th largest privately held independent agency in the country. INSURICA employs more than 600 colleagues in 33 offices located throughout Oklahoma, Texas, Arkansas, Kansas, Colorado, Arizona, California, Mississippi, Alabama, and Florida. We are constantly looking to expand our network with partners who bring additional value and expertise to the enterprise and our clients. Our focus on finding quality and experienced partners, coupled with the resources of Assurex Global positions INSURICA as one of the preeminent insurance brokerages in the country and further emphasizes our customer pledge that we "Specialize in You."

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Core Insurance

NAIC Members Approve Model Bulletin on Use of AI by Insurers

NAIC | December 06, 2023

The National Association of Insurance Commissioners (NAIC) Membership voted to adopt the Model Bulletin on the Use of Artificial Intelligence Systems by Insurers during the 2023 Fall National Meeting. The bulletin reflects the work of the NAIC Innovation, Cybersecurity, and Technology (H) Committee, chaired by Maryland Insurance Commissioner Kathleen A. Birrane. Michael Conway, Commissioner of the Colorado Division of Insurance, and Doug Ommen, Commissioner of the Iowa Insurance Division, are co-vice chairs of the committee. "This initiative represents a collaborative effort to set clear expectations for state Departments of Insurance regarding the utilization of AI by insurance companies, balancing the potential for innovation with the imperative to address unique risks," said Commissioner Birrane. As the insurance sector navigates the complexities of AI, the NAIC's Model Bulletin on the Use of Artificial Intelligence Systems by Insurers provides a robust foundation to safeguard consumers, promote fairness, and uphold the highest standards of integrity within the industry. [Source -PR Newswire] The H Committee, comprised of representatives from 15 states, began drafting the bulletin in 2023 with the goal of establishing comprehensive regulatory standards to ensure the responsible deployment of AI in the insurance industry. The bulletin addresses critical issues related to the usage of AI, such as potential inaccuracies, unfair biases leading to discrimination, and data vulnerabilities. While not a model law or regulation, the AI model bulletin serves as a guiding document, fostering uniformity among state insurance regulators regarding expectations for insurance carriers deploying AI. The bulletin comprises four key sections, each addressing crucial aspects of AI usage by insurers. It emphasizes the importance of responsible governance, risk management policies, and procedures to ensure fair and accurate outcomes for consumers. The bulletin reminds insurance carriers that decisions impacting consumers that are made or supported by advanced analytical and computational technologies, including AI, must comply with all applicable insurance laws and regulations, including unfair trade practices. The bulletin also sets forth state insurance regulators' expectations on how insurers should govern the use of such technologies by or on behalf of the insurer to make or support such decisions, including the creation and implementation of a written AIS Program, commensurate with an assessment of the risk in accordance with the guidelines established by the NAIC's 2020 Principles of Artificial Intelligence, and to ensure that decisions impacting consumers made or supported by AI are accurate and do not violate unfair trade practice laws or other applicable legal standards. The bulletin also advises insurers of documentation that a state Department of Insurance may request during an investigation or examination. The initial draft was presented to the working group on June 29, 2023, and subsequently exposed for public comment periods, allowing for extensive input from industry stakeholders, consumers, and legislators. The process involved two exposure periods, with the first public comment period ending on Sept. 5, 2023, and the second ending on Nov. 6, 2023. The review process also included in-person comments during the 2023 Summer National Meeting in Seattle, WA, and during the 2023 Fall National Meeting in Orlando, FL. Significant updates were made to the model bulletin based on the feedback received. These updates addressed concerns raised during the review process, including a shift in focus toward outcomes, revisions to key definitions aligned with National Institute for Standards and Technology (NIST) standards, and updates to language on third-party contracting and testing and validation protocols. Commissioner Birrane expressed gratitude for the collaborative efforts of the H Committee, drafting groups, and all stakeholders involved. The completion and adoption of the model bulletin mark a significant step forward in adapting regulatory frameworks to the evolving landscape of AI in the insurance industry. About the National Association of Insurance Commissioners As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.

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