The Rise of the Robo-Insurer – Ninety Consulting Whitepaper
Article Synopsis :
Although robo-advisors have become an established part of the financial services industry, especially in the field of wealth management, their use in insurance is still early stages.
Ninety Consulting’s whitepaper, “The Rise of the Robo-Insurer” covers the impacts and opportunities of robotics, drones and artificial intelligence and provides a futuristic view of the impact of robotic applications on the insurance industry. Highlights include:
- Robotic Process Automation (RPA): Automating high-volume business processes and workflows. This often will result in replacing or augmenting human roles freeing people to focus on higher-value tasks.
- Artificial Intelligence and Cognitive Computing (AI): Still at a very nascent stage of adoption. This has the potential to extract predictive value and recommendations from large, dynamic data sets.
- Drones: In limited use, drones offer a range of significant opportunities such as gathering insights during claims processing or risk assessment and the ability to respond quickly during emergencies.
RPA and AI provide opportunities such as the deployment of an Intelligent Virtual Agency force, the automation of claims, streamlined customer contact, fraud detection and prevention and next-generation predictive data sources. Drones will help in areas such as improving productivity, accuracy and safety, fraud detection and quick response around catastrophes and natural disasters. Business results achievable through all three classes of technologies include:
- New, integrated customer propositions.
- Service differentiation.
- Reduced operational costs.
- Reduced claims fraud.
- Improved risk modeling.
- Better loss ratios.
- Improved Combined Operating Ratio (COR).
- Decreased response times.
Insurers can leverage these by:
- Implementing/roadmapping the automation of core processes
- Testing/developing “smart agent” solutions
- Experimenting with cognitive computing for underwriting and claims processes
- Running trials with technology partners
- Developing activity-appropriate technology stacks
The benefits will not have a neutral impact on existing workers and the potential changes need to be baked into the decision-making process to ensure a wholly positive outcome.
Link to Full Article:: click here
Digital Insurer's CommentsRobotic applications present a challenge for the insurance industry. Whereas the benefits–radically lower costs, faster decisions, automated real-time support—are extremely compelling the fear of worker displacement is a major factor.
Leadership is key, selling the organization on a brighter future with greater capabilities and higher-value, more rewarding work. The rise of the machines, done right, is also about the rise of people.
Link to Source:: click here