Realizing new value ininsurance with AI:A snapshot
Insurance customer trends are shifting at a rapid pace.
More revenue is earned by brands that have a superiorcustomer experience than their competitors.
Customers have shown interest in using fast andconvenient automated advice for buying insurance.
Customers stay with brands that offerhigh-quality customer service.
Artificial Intelligence (AI) holds the promise of transforming the insurancesector into a modern, customer-oriented industry. It harnesses the immensepotential of the constant stream of incoming insurance data to transform theholistic insurance experience.
Here is a big picture of the key challenges with manual processes incritical operations in insurance and how AI can impact them.
42%
46%
5.7x
From manual to magical
Manual data entry andextraction are inefficientand highly prone tohuman error.
90% automation of quotecreation process throughRPA bots and OCRcapabilities brings downTAT by 80% and FTEby 50%.
Manual processing oflow-quality data leadsto human errors andoperational inefficiencies.
Manual data extractionfrom unstructuredformats and filing intoan AMS* is mundaneand prone to errors.
Manual reinsurancecapacity evaluation andcalculation of reinsurancevalue is inaccurate,time- consuming anderror-prone.
Automated data extraction,claim settlement, fraudprediction bring downclaims cycle TAT by 66%.
Automated documentclassification andinformation extractionimproves productivityby 80%.
95% automation of thereinsurance capacitycheck process leads to60% reduction in TAT
Challenges
AI impact**
Quoteautomation
Claimsprocessing
Documentindexing Reinsurance
This has a positive domino effect in the insurance value chain.
* Agency Management System
Based on Imaginea’s experience of working with three of the top ten globalinsurers, several mid-sized carriers and multiple insurtech companies
**
AutomatedAI-driven operations
Improvedprocessefficiency
Easedout userjourney
Better customerexperience
Higherretention rate
Robustbusiness
growth
Strongerinvestmentcapabilities
The AI virtuouscircle in
insurance
A positive outlookMore and more insurers are positive about the tech’s transformationalcapabilities and jumping on the AI bandwagon.
74%Insurance executives say AI willrevolutionize the way they gaininformation from and interactwith customers.
90%Insurance executives say theyhave a long-term plan for techinnovation in place.
63%Insurance executives sayintelligent tech will totallytransform the industry.
A rich future aheadThe promise and impact of AI in insurance is also routing big fundsinto the industry. The otherwise laggard industry is getting a freshlease of life - in terms of global worth - thanks to AI.
$301mn
Total value of funds pumpedin by investors into insurtechfirms in Q1 2020. $20bn
Total value of global AI-underwrittenpremiums by 2024.
$1.1T
Total potential annualvalue if AI is fully appliedto the insurance industry.
https://www.pwc.com/us/en/moneytree-report/assets/pwc-moneytree-2020-q1.pdfhttps://www.accenture.com/us-en/insights/financial-services/digital-transformation-remaking-insurancehttps://www.accenture.com/us-en/insight-insurance-distribution-marketing-consumer-study#https://www.slideshare.net/AccentureInsurance/realizing-the-full-value-of-ai-in-insurance-infographichttps://www.slideshare.net/AccentureInsurance/insurance-technology-vision-2017-iinfographichttps://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/the-executives-ai-playbook?page=industries/insurance/https://www.insurancejournal.com/news/international/2019/08/19/536716.htm
References
Customer Policy
ClaimHistory
HistoricalData
Third-party Data
SmartPolicy
Workflow
FasterClaims
Delivery
AutomatedCustomer
Interactions
SmartUnderwriting
Quotes
EXPERIENCEDATA
To know more about therise of AI in insurance,download our report.
