Claims
Article | July 15, 2022
There is no doubt that we are living in an era in which insurers have been called to transform their business offerings, infrastructure and operations. Successful transformation translates into new revenue opportunities, stronger customer relationships and sustained brand relevance. However, this need to evolve cannot be addressed through superficial changes. Leading insurers are transforming their core offerings to completely reimagine their role in the insurance landscape. As the nominations and winners for the Efma-Accenture Innovation in Insurance Core Insurance Transformation award show, leading insurers are starting their core transformation at the top, and applying it to every touchpoint of the business.
Nine pioneering nominees
The nine nominees in the core insurance transformation category lead core insurance transformation in various innovations across their value chain. The nominations were:
AXA for A.Iconic Claims
Discovery for AI Quote
RBC for their conversational AI Platform, driven by Personal Insights for Life Insurance Application
Generali for their fund transaction through blockchain innovation
FWD for the AI-Everywhere Smart Insurance Framework
China Life Insurance for an intelligent value evaluation system for salesforce
Multiasistencia for MACARENA, an innovative AI voicebot that provides100% automated First Notice of Loss in home insurance claims
Humania for their ground-breaking income insurance for accident and disability claims
Mapfre for Verbatims, a cognitive behavioural model that integrates live customer feedback
As can be seen, by the nominees above, AI is a leading technology in core insurance transformation. In fact, every innovation used technology in fresh, structured ways to create a lasting impact on their business. Let’s look closer at the winners, and what their innovations say about how to lead core insurance transformation in 2021.
Gold: Discovery
Discovery are transforming the way brokers and clients engage with them through the introduction of their AI Quote service. Users are able to upload a PDF or pictures of competitor insurance and investment documents via phone or computer, and receive an equivalent Discovery quote in seconds. The entire journey can be completed in under a minute. Brokers can take the quotes to their clients and where a client has completed the direct journey, they will be called by a sales agent to discuss the specifics of the quote and close the sale.
Romek Sadowski, Discovery Life’s Head of Technical Marketing says, “Ultimately, AI-powered optical character recognition (OCR) technology has been able to equip us with a seamless journey for clients, advisers and employees of the business as a whole. For clients, benefits include receiving a comparable quote in less than a minute and an improved understanding of Discovery’s products relative to the market. For advisers, key benefits include more accurate and consistent competitor comparisons, as well as a reduction in sales and quoting frictions. By automating the process of extracting data from policy documents and then converting it into comparable Discovery Life benefits, our advisers are able to spend less time on manual work and more time assisting our clients.
AI Quote has also created opportunities for Discovery Life to incorporate digital tools into many of our existing processes and create a single, seamless, digital journey for advisers and clients alike. Additional innovations, such as Virtual Underwriting which allows clients to undergo underwriting from anywhere they choose, have been developed and are being refined in order to make this goal for a seamless digital journey a reality.”
This is an important innovation in the South African insurance and investment landscape, which is highly developed and innovative, and characterised by frequent product updates and enhancements. While products are fine-tuned to meet customer needs, it’s difficult for brokers to keep track of various products in the market and how they compare from one competitor to another. Clients are also not in the position to understand how exactly their financial products compare against competitors.
“The South African insurance industry is a complex environment with a vast array of sophisticated products. Financial advisers are faced with numerous competitors each with multiple products and options, resulting in countless different quoting combinations. By automating the comparison process, AI Quote simplifies the new business experience for both advisers and clients, increasing conversion rates and improving stakeholder satisfaction. AI Quote ensures that clients who have existing policies with our competitors are quoted comparable Discovery benefits and gives advisers confidence that they are providing clients with the best possible advice when comparing policies.”
By removing sales frictions and automatically carrying out comparisons, Discovery’s AI Quote aims to enhance the company’s exposure to potential clients, attract brokers to sell Discovery products, improve the accuracy of replacements and promote Discovery’s brand as a market-leading innovator. With an efficient client- and broker-centric platform, Discovery has taken quoting to the next level.
The potential for AI, however, is just beginning to be untapped. Romek concludes, “The insurance landscape is evolving, and we have seen an influx in microinsurance providers, direct-to-customer insurers and niche players in the market. When it comes to life insurance, clients are faced with a dauntingly large number of options – and that number is increasing. Within such complexity, manual processing of data in order to generate benefit comparisons is simply inefficient. A key benefit of AI is that it can complement or replace manual processes and allows for a far more streamlined user experience.
Outside of the new business process, AI has displayed immense success in other areas such as customer service, underwriting and claims. Chatbots are now commonly used by insurers around the world to assist clients and answer their questions. Car insurance has been fundamentally changed through advancements in telematics. Big data is more readily available and, with the help of AI, can be utilised to make faster and more accurate pricing and underwriting decisions.”
Silver: Generali
Generali conducted a deep transformation in the way they transact with their counterparts and custodians through the use of blockchain technology.
Generali France currently processes 250 thousand orders on funds (to cover unit-linked policies) per year through classical schemes via custodians. The aim is to generate a direct link with asset managers for trading shares of funds without using the costly transfer agent of custodians.
With this transformation in mind, Generali France invested in a startup called Iznes, developing a trading platform on funds based on blockchain technology. With this as a foundation, Generali has begun to connect its IT and operations to the innovative platform.
The innovation can serve all middle and back offices of investment departments and asset management companies. It crunches transaction costs and creates a direct link between the buy-side and the sell-side. The total cost of Generali Unit-linked orders is expected to drop by half, supposing that 50% of counterparts join the platform.
Bronze: FWD
Led by their customers’ needs and vision to change the way people feel about insurance, FWD Group Data developed a ‘Smart Insurance Framework’ which sees the business embarking on a ‘AI-everywhere’ approach. The platform has transformed the entire insurance journey for both their customers and employees with the use of advanced technologies and AI power.
To create a simpler and smoother insurance experience for customers, FWD created a modern data architecture framework that improves operation efficiency internally and convenience externally. The Group Office Data Platform (GODP) streamlines and integrates all data into a single platform that is smart, secured and scalable. This platform allows business users to harness data, insights and run analytics across all our markets, to help support a spectrum of initiatives in FWD with data. The clever use of data allows FWD to evolve and predict customer responses more accurately, develop a better understanding of customer needs and behaviour, and in turn serve them better.
As the nominees and winners show, the insurance industry is embracing technology to pre-empt, analyze and streamline customer, broker and employee experiences. We would love to hear how you are transforming your core insurance operations. Submit your core insurance innovation to the Efma-Accenture Innovation in Insurance Awards for 2022.
Read More
Insurance Technology
Article | July 14, 2022
The traditional insurance business has been resistant to technological change for a long time. However, the industry has made significant progress over the last decade due to the implementation of the innovative InsurTech solution, which disrupted long-held market patterns.
Technological changes have made insurers work intelligently through new strategies for attracting a new generation of customers. Embedded insurance is a trillion-dollar opportunity for insurers, giving them the chance to make new streams of money and lower their costs of distribution.
In totality, embedded insurance is a new frontier of product innovation in insurance based on rising customer use of digital services. It presents a $3 trillion market potential in the finance industry.
Narrowing the Gap that Existed
Embedding digital into insurance eradicated all the gaps that existed before. Earlier, many customers felt a burden or found it unnecessary to purchase a one-off insurance policy to protect a new possession. In contrast, at present, embedded insurance products for customers are covered with protection against losses. This has given customers the ultimate peace of mind.
InsureTech has provided insurers with improved data capture tools to conduct faster and more customized underwriting with applications. To reinvent insurance business models, embedded insurance as one of the InsurTech solutions has appeared efficient in filling the gaps in the insurance business.
Most insurance companies proactively recognize gaps such as irrelevant data capture, inaccurate customer information, and sluggish data retrieval processes. Thus, they are attempting to incorporate their products into an embedded structure where they can engage with digitally relevant consumers at their chosen time and place. Hence, embedded business intelligence for insurance creates a win-win situation for both the consumer and the insurer in the future.
Embedded Insurance Presents Opportunities
Why is embedded insurance becoming popular? Because it empowers customers the most.
Embedded insurance is beneficial to insurers seeking new ways to reach wider audience in one go. According to Bazaarvoice, a software technology company, 47% of consumers worldwide and 65% of US buyers now purchase online insurance products and services more frequently compared to the years from 2017 to 2020.
Today, with the help of technology, most insurance companies now embed their products virtually anywhere through open APIs. So, by integrating products into a virtual platform, insurers can deliver personalized products within a suitable period, perform real-time risk assessments, gain data, and calculate accurate pricing.
The insurers who gain this edge of benefit from technology need to be prepared to learn everything they can about their customers’ insights, behavior, requirements, and inclinations.
Embedded Insurance: Today and Beyond
Embedded insurance is a fantastic tool for insurers to enhance insurance penetration, particularly in the remote workspace model. However, to succeed with it, firms must find the correct balance between speed and efficiency of operations, detailed study of customer interests, and compliance with data.
Having mentioned that, it is emerging as a new way to distribute insurance services online efficiently, solving the protection gap to expand in the future.
Read More
Core Insurance, Risk Management
Article | August 4, 2022
In the 21st century, we have witnessed high technological advancement. Just like any other industry, the insurance sector is transforming at a rapid speed. With the changes in demands and expectations of customers, insurers are seeking digital innovation and transformation that not only meet the requirements but also reduces their costs.
So, here are a few that are set to engulf the entire industry for the better. These tech trends will help both insurers and customers to achieve what matters the most efficiently.
Artificial intelligence For Process Improvement
AI tends to disrupt the insurance industry more than any other technology. The main advantages that insurers can claim with AI include reduced claim costs, identifying insurance fraud, and mining voice data for improved customer service. The more an insurer will understand and use this technology, the better they will survive the competition.
Customers usually look for a personalized experience when it comes to buying something especially as crucial as insurance. Artificial Intelligence provides the ability to create a personalized experience for a vast amount of users based on the data collected. It also enables fast data access and rapid reporting by removing the human element from the process.
Blockchain for Secured Records
With the amount of security required in the insurance records and claims, blockchain seems to be the most powerful technology for the upcoming revolution. The thriving technology behind the cryptocurrency has become the center of attention for insurance enterprises. Blockchain having the capability to encrypt all the data can decrease the number of fraudulent transactions, loss of data, and scams.
IoT For Protecting Investment
IoT (Internet of Things) is a technology trend that can be used to connect different objects to the internet. Be it a car, smartwatch, or a refrigerator. For insurance companies, it can be the most awaited blessing as IoT can help in detecting any problem before the actual damage take place. With the help of this technology, insurers can alert the customers in advance about the problems they might face through vehicle tracking, biometrics, and weather sensing. All of this makes it a win-win situation for both consumers and insurers.
Automation For Ease of Verification
Automation along with machine learning will drive better efficiency in the insurance sector. Having the intelligent system as support, insurers are exploring the more complex processes that can be automated. Some of which entails verification and approval of claims, customized interactions with customers, acquiring insights of the customers, property assessments, and detection of fraud.
Adopt New Tech To Succeed
As the competitors of insurance companies are moving ahead, more organizations need to adopt these emerging technologies. Moreover, techs like blockchain and automation are ready to provide more efficient processes. On the other hand, AI and IoT will help in offering personalized experiences while lowering the cost.
Besides, a company or insurer can also hire developers to develop their system or application that can provide all the customization and security needed in the processing.
Read More
Article | April 13, 2020
Amid COVID-19, banks began offering mortgage deferrals and slashing credit card interest rates in half for cardholders who need relief. Home and auto insurance companies COVID-19 plans are now being released. How will this impact your insurance right now? How can you save on insurance during COVID-19, while making sure to stay protected?
Read More