Core Insurance, Risk Management
Article | August 4, 2022
Despite ongoing concerns about COVID-19 variants, most insurers anticipate a faster economic recovery and increased investments in digital technology in 2022. One-third of those polled expect revenues to be "significantly higher" next year. The global demand for insurance is expected to rise further.
Insurers face a variety of challenges, including economic hurdles such as the possibility of sustained inflation; sustainability concerns such as climate risk, diversity, and financial inclusion; and rapidly changing consumer product and purchase preferences.
Attracting (and Retaining) Talent Will Be Critical in a Hybrid Work Environment
Future of work considerations have also grown in importance as carriers strive to develop flexible return-to-office strategies while also struggling to retain and recruit high-level talent in a highly competitive job market, particularly for those with advanced technology and data analytics skills.
Insurers Must Find a Way to Balance Technological Adoption with the Preservation of the Human Touch
Insurers are becoming more reliant on emerging technologies and data sources to increase efficiency, improve cybersecurity, and expand capabilities across the organization. Most, however, should focus on improving the customer experience by streamlining processes with automation and providing customized service where needed and preferred.
Opportunities to Increase Stakeholder Trust Have Arisen as a Result of the Pandemic
On a more fundamental level, many carriers should consider taking steps to increase stakeholder trust in order to increase retention and profitability. This could be accomplished in part by increasing transparency in how insurers collect and use personal data. They can also become more proactive in seeking comprehensive solutions to large-scale societal issues, such as reducing the financial impact of future pandemics and closing coverage gaps for natural disasters.
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Automobile Insurance, Insurance Technology
Article | December 19, 2022
The world is facing an unprecedented situation like never before. In the span of a couple of weeks, a visually undetectable virus has wreaked havoc and driven everyone home. COVID-19 had led offices to close, the economy to slow down, and has isolated us in our homes. Zooming in on the insurance industry, the effects haven’t gone unnoticed here either. Since no one was prepared for a pandemic of this scale, people are scrambling to know what their insurance covers. Those who weren’t covered are enquiring if they can get covered now. Travel and health insurance are the specific types are making the most news.
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Insurance Technology
Article | July 19, 2022
Do you know what the UK insurance industry is going through? A disruption that calls for complete metamorphosis. Not so different from what the whole world is going through at the moment. Crafting one-size-fits-all products and expecting them to sell like hotcakes is a huge misconception. Customers want products to be as personalised as possible. Pay per mile insurance or lower car insurance premiums for safe drivers are some examples. In the current global crisis, personalised life insurance would look like factoring in the unique health/ living conditions of the person and then providing insurance options.
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Risk Management
Article | May 31, 2022
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.
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