In the insurance industry - where profit margins vary widely based on catastrophes on the property casualty side and are usually razor thin on the life side - improving operational efficiency, even by the smallest of increments can have a highly beneficial impact. Fueled by digital acceleration, many insurers are turning to cognitive technologies to optimize, automate, and digitize operations. Insurers are continually challenged with identifying new ways to invest in automation to improve operations with high return value such as the customer experience, with the ultimate goal of reducing costs and improving profitability.
In every sector of insurance and other industries the cognitive technology construct is transforming the way insurers do business. Intelligent automation is just one of the ways insurers contemplate how to innovate through technology investment. The tsunami of digital acceleration on insurers’ technology agenda has been unprecedented in the insurance industry since early 2020. The digital acceleration agenda has insurers assessing intelligent technologies to enable digitizing all aspects of the business process ecosystem.
Over the last few years, we've seen a convergence in technology that is enabling transformative business impact through the application of AI and advanced analytics. At the forefront of this convergence is the evolution of cloud computing which improves both virtualization and capacity. With the increasing sophistication of AI and machine learning these combined technologies are being applied and having significant impact across insurer business units in claims, underwriting, actuarial, and sales and distribution. The application of AI and ML is now expanding to incorporate alternative data sources—typically third-party external data such as newspaper articles, press releases, public records, social, etc. —to deliver even deeper business insights than ever before.
Claims and underwriting are two areas that have really been the focus on optimization. Solution providers and insuretechs aligned to these categories provide technologies and services to make the insurance industry’s processes more efficient and customer friendly. Data analytics plays a major role alongside the implementation of user-friendly customer experience processes. Innovative technologies and methodologies being employed in this area range from algorithms to cognitive science.
Speaking of cognitive technology in insurance, I will be hosting a panel discussion on the topic at InsureTech Connect 2022 (ITC) on September 20th at 1:00 pm. Please join me to get into the fascinating discussion on “Do you have intelligence in your processing? AI and ML driven innovation in insurance”. This is an opportunity to listen to solution providers challenging status quo and looking at way to expand their value proposition.
If you’re not already registered for ITC, reach out. We have some great discounts available to attend. If you are registered, check out the rest of our preconference session on Tuesday September 20th from 1-5 pm. We have great panel sessions on aerial imagery, embedded insurance, intelligent automation, and we’ll look closely at digital distribution models.