The insurance industry – from product development to underwriting to claims – is being fundamentally transformed by AI technologies. Although some companies are investing aggressively in AI to slash costs while also enhancing the customer experience, most insurers will need to accelerate their efforts or risk discovering that it has become too late to catch up.
Insurers expect artificial intelligence to completely transform the way they run their businesses.
Read more: https://www.accenture.com/in-en/insight-ai-redefines-insurance
A View on AI in Insurance - Chris Madsen - H2O AI World London 2018Sri Ambati
This talk was recorded in London on October 30th, 2018 and can be viewed here: https://youtu.be/LFVIGMMlfhI
A view on what is driving AI and ML developments in insurance and why.
• What is driving the change in insurance and why is AI/ML so important?
• What does the future look like?
• Which AI/ML use cases are being worked on in the industry?
• Which ones are needed?
Chris Madsen is Chairman and CEO of Blue Square Re N.V., Aegon’s internal reinsurer and a company he co-founded in 2010.
Mr. Madsen holds a Masters in Engineering from Princeton University in Princeton, USA. His undergraduate degree is in Mathematics and Economics. He is an Associate of the Society of Actuaries, a Member of the American Academy of Actuaries and a Chartered Financial Analyst.
He started his professional career in New York in 1990, working as Consulting Actuary and later Principal. Mr. Madsen has published numerous articles on innovative underwriting risk solutions and is a frequent speaker on the topic and related developments.
Mr. Madsen is an avid proponent and driver of integrating start-up and insurtech expertise into insurance solutions - including internet-of-things applications as well as blockchain initiatives such as “B3i”. He is also responsible for the ground-breaking longevity solutions that Aegon brought to the capital markets totalling over EUR 20bn of reserves.
Ai in insurance how to automate insurance claim processing with machine lear...Skyl.ai
Explore more at https://skyl.ai/form?p=start-trial
About the webinar
Insurance companies are looking at technology to solve complexity created by the presence of cumbersome processes and the presence of multiple entities like actuaries, support team and customers in the claim processing cycle.
Today, a lot of insurance companies are opting for Machine Learning to simplify and automate the processes to reduce fraudulent claims, predict underwriting risks, improve customer relationship management. This automated insurance claim process can remove excessive human intervention or manual errors and can report the claim, capture damage, update the system and communicate with the customers by itself. This leads to an effortless process enabling clients to file their claims without much hassle.
In this webinar, we will discuss how insurers are increasingly relying on machine learning to improve claim processing efficiency and increase ROI.
How Insurers Can Harness Artificial IntelligenceCognizant
Once science fiction, artificial intelligence now holds vast potential for insurers interested in reinventing their business models and transforming customer experience.
AI in Insurance: How to Automate Insurance Claims Processing with Machine Lea...Skyl.ai
Insurance companies are looking at technology to solve complexity created by the presence of cumbersome processes and the presence of multiple entities like actuaries, support teams, and customers in the claim processing cycle.
Today, a lot of insurance companies are opting for Machine Learning to simplify and automate the processes to reduce fraudulent claims, predict underwriting risks, improve customer relationship management. This automated insurance claim process can remove excessive human intervention or manual errors and can report the claim, capture damage, update the system, and communicate with the customers by itself. This leads to an effortless process enabling clients to file their claims without much hassle.
In this webinar, we will discuss how insurers are increasingly relying on machine learning to improve claim processing efficiency and increase ROI.
What you will learn:
. Deep dive into how insurance companies are adopting AI
. Discuss prominent industry use cases
. Live demo of vehicle damage assessment for insurance claims management
Insurers expect artificial intelligence to completely transform the way they run their businesses.
Read more: https://www.accenture.com/in-en/insight-ai-redefines-insurance
A View on AI in Insurance - Chris Madsen - H2O AI World London 2018Sri Ambati
This talk was recorded in London on October 30th, 2018 and can be viewed here: https://youtu.be/LFVIGMMlfhI
A view on what is driving AI and ML developments in insurance and why.
• What is driving the change in insurance and why is AI/ML so important?
• What does the future look like?
• Which AI/ML use cases are being worked on in the industry?
• Which ones are needed?
Chris Madsen is Chairman and CEO of Blue Square Re N.V., Aegon’s internal reinsurer and a company he co-founded in 2010.
Mr. Madsen holds a Masters in Engineering from Princeton University in Princeton, USA. His undergraduate degree is in Mathematics and Economics. He is an Associate of the Society of Actuaries, a Member of the American Academy of Actuaries and a Chartered Financial Analyst.
He started his professional career in New York in 1990, working as Consulting Actuary and later Principal. Mr. Madsen has published numerous articles on innovative underwriting risk solutions and is a frequent speaker on the topic and related developments.
Mr. Madsen is an avid proponent and driver of integrating start-up and insurtech expertise into insurance solutions - including internet-of-things applications as well as blockchain initiatives such as “B3i”. He is also responsible for the ground-breaking longevity solutions that Aegon brought to the capital markets totalling over EUR 20bn of reserves.
Ai in insurance how to automate insurance claim processing with machine lear...Skyl.ai
Explore more at https://skyl.ai/form?p=start-trial
About the webinar
Insurance companies are looking at technology to solve complexity created by the presence of cumbersome processes and the presence of multiple entities like actuaries, support team and customers in the claim processing cycle.
Today, a lot of insurance companies are opting for Machine Learning to simplify and automate the processes to reduce fraudulent claims, predict underwriting risks, improve customer relationship management. This automated insurance claim process can remove excessive human intervention or manual errors and can report the claim, capture damage, update the system and communicate with the customers by itself. This leads to an effortless process enabling clients to file their claims without much hassle.
In this webinar, we will discuss how insurers are increasingly relying on machine learning to improve claim processing efficiency and increase ROI.
How Insurers Can Harness Artificial IntelligenceCognizant
Once science fiction, artificial intelligence now holds vast potential for insurers interested in reinventing their business models and transforming customer experience.
AI in Insurance: How to Automate Insurance Claims Processing with Machine Lea...Skyl.ai
Insurance companies are looking at technology to solve complexity created by the presence of cumbersome processes and the presence of multiple entities like actuaries, support teams, and customers in the claim processing cycle.
Today, a lot of insurance companies are opting for Machine Learning to simplify and automate the processes to reduce fraudulent claims, predict underwriting risks, improve customer relationship management. This automated insurance claim process can remove excessive human intervention or manual errors and can report the claim, capture damage, update the system, and communicate with the customers by itself. This leads to an effortless process enabling clients to file their claims without much hassle.
In this webinar, we will discuss how insurers are increasingly relying on machine learning to improve claim processing efficiency and increase ROI.
What you will learn:
. Deep dive into how insurance companies are adopting AI
. Discuss prominent industry use cases
. Live demo of vehicle damage assessment for insurance claims management
AI Basic, AI vs Machine Learning vs Deep Learning, AI Applications, Top 50 AI Game Changer Solutions, Advanced Analytics, Conversational Bots, Financial Services, Healthcare, Insurance, Manufacturing, Quality & Security, Retail, Social Impact, and Transportation & Logistics
* "Responsible AI Leadership: A Global Summit on Generative AI"
*April 2023 guide for experts and policymakers
* Developing and governing generative AI systems
* + 100 thought leaders and practitioners participated
* Recommendations for responsible development, open innovation & social progress
* 30 action-oriented recommendations aim
* Navigate AI complexities
Importance of Artificial intelligence (AI) in InsuranceDamco Solutions
Artificial Intelligence (AI) benefits the insurance industry by saving time and money, improving customer experience, predicting risk, detecting fraud, and improving profitability. Read more at: https://bit.ly/AI-In-Insurance
🤖 Understanding 4 Waves of AI
💡 This is my humble attempt to research and correlate FOUR major waves or generations of Artificial Intelligence (AI).
🤓 I brought some generic industry use cases and researched what Salesforce offers in various Einstein services.
🥵 As a vast majority of Einstein offerings are available, it is possible to miss out on quoting some names. Please be kind, and excuse me for that.
💬 Drop your favourite AI examples, thoughts and Einstein services that correlate with this content.
#Salesforce #AI #Einstein #EinsteinAI
🔹How will AI-based content-generating tools change your mission and products?
🔹This complimentary webinar [ON-DEMAND] explores multiple use cases that drive adoption in their early adopter customer base to provide product leaders with insights into the future of generative AI-powered businesses, and the potential generative AI holds for driving innovation and improving business processes.
AI in Insurance: How to Automate Insurance Claim Processing with Machine Lear...Skyl.ai
About the webinar
Insurance companies are looking at technology to solve complexity created by presence of cumbersome processes and presence of multiple entities like actuaries, support team and customers in the claim processing cycle.
Today, a lot of insurance companies are opting for Machine Learning to simplify and automate the processes to reduce fraudulent claims, predict underwriting risks, improve customer relationship management. This automated insurance claim process can remove excessive human intervention or manual errors and can report the claim, capture damage, update the system and communicate with the customers by itself. This leads to an effortless process enabling clients to file their claims without much hassle.
In this webinar, we will discuss how insurers are increasingly relying on machine learning to improve claim processing efficiency and increase ROI.
What you'll learn
- How Insurance companies are using ML to drive more efficiency and business gain
- Best practices to automate machine learning models
- Demo: A deeper understanding of the end-to-end machine learning workflow for car damage recognition using Skyl.ai
A Framework for Navigating Generative Artificial Intelligence for EnterpriseRocketSource
Generative AI has dominated the headlines recently, which has caused many enterprises to put a full stop to implementing this technology until they can understand what’s behind the glitz and glamour. What if we shifted the conversation? What if the focus became a fresh, incremental approach to embracing the opportunities with generative artificial intelligence to keep organizations moving upward on the S Curve of Growth?
Brands stay relevant and solve complex problems by testing the barometer for one thing — will a new strategy, tool, or piece of technology improve humanity?
Human connections are more vital than using shiny new tools or technology. As your teams work to steer clear of the temptation to do what everyone else is doing in uniform, this post will highlight how to stand out, compete, and do so with less risk in today’s world of generative AI overload.
Insurers need to evolve and view AI as a game-changing technology. Learn how 86% of UKI Insurers agree that technology is advancing at an exponential rate.
The financial industry is witnessing an emerging trend of Large Language Models (LLMs) applications to improve operational efficiency. This article, based on a round table discussion hosted by TruEra and QuantUniversity in New York in May 2023, explores the potential use cases of LLMs in financial institutions (FIs), the risks to consider, approaches to manage these risks, and the implications for people, skills, and ways of working. Frontline personnel from Data and Analytics/AI teams, Model Risk, Data Management, and other roles from fifteen financial institutions devoted over two hours to discussing the LLM opportunities within their industry, as well as strategies for mitigating associated risks.
The discussions revealed a preference for discriminative use cases over generative ones, with a focus on information retrieval and operational automation. The necessity for a human-in-the-loop was emphasized, along with a detailed discourse on risks and their mitigation.
A joint report between EY and LSE with contribution from Seldon. This report describes research undertaken by The London School of Economics and Political Science on behalf of EY Financial Services to investigate the use of Artificial Intelligence and Machine Learning and to provide one use case for each of the following sectors; Insurance, Banking & Capital Markets, and Wealth & Asset Management.
COVID-19 has increased the need for intelligent decisioning through AI, but ROI is not guaranteed. Here's how to accelerate AI outcomes, according to our recent study.
Explore the risks and concerns surrounding generative AI in this informative SlideShare presentation. Delve into the key areas of concern, including bias, misinformation, job loss, privacy, control, overreliance, unintended consequences, and environmental impact. Gain valuable insights and examples that highlight the potential challenges associated with generative AI. Discover the importance of responsible use and the need for ethical considerations to navigate the complex landscape of this transformative technology. Expand your understanding of generative AI risks and concerns with this engaging SlideShare presentation.
In this session, you'll get all the answers about how ChatGPT and other GPT-X models can be applied to your current or future project. First, we'll put in order all the terms – OpenAI, GPT-3, ChatGPT, Codex, Dall-E, etc., and explain why Microsoft and Azure are often mentioned in this context. Then, we'll go through the main capabilities of the Azure OpenAI and respective usecases that might inspire you to either optimize your product or build a completely new one.
Technology and Innovation in Insurance– Present and Future Technology in Indi...Dr. Amarjeet Singh
Insurance companies are unique — most of their interactions with customers happen through an agent. In effect, a chunk of technology investment goes into improving agent experience. Insurers have developed systems to advise agents on products tailored for specific customers, depending on their history with the insurer and income band. Bajaj Allianz Life Insurance has a mobile app to hire agents. This helps in training, exams and licensing. It has brought on board 15,700 consultants digitally in the past year, cutting down processing time by half.
Insurers have launched mobile phone apps, making it easier for customers to transact with them. They are, slowly and surely, moving towards paperless claims as well. These are, however, only the first steps in digital transformation. Changing core systems is expensive and complicated. So, most transformation initiatives focus on improving systems of engagement with customers.
With the constant advancements and better use of digital tools in the last few years; most of these challenges seem to be addressed efficiently. While technologies such as Robotic Process Automation (RPA), Artificial Intelligence (AI), Block chain, and Advanced Analytics are working as promoters to enhance the importance of insurance, the insurers are working hard to create a more streamlined and integrated insurance system.
AI Basic, AI vs Machine Learning vs Deep Learning, AI Applications, Top 50 AI Game Changer Solutions, Advanced Analytics, Conversational Bots, Financial Services, Healthcare, Insurance, Manufacturing, Quality & Security, Retail, Social Impact, and Transportation & Logistics
* "Responsible AI Leadership: A Global Summit on Generative AI"
*April 2023 guide for experts and policymakers
* Developing and governing generative AI systems
* + 100 thought leaders and practitioners participated
* Recommendations for responsible development, open innovation & social progress
* 30 action-oriented recommendations aim
* Navigate AI complexities
Importance of Artificial intelligence (AI) in InsuranceDamco Solutions
Artificial Intelligence (AI) benefits the insurance industry by saving time and money, improving customer experience, predicting risk, detecting fraud, and improving profitability. Read more at: https://bit.ly/AI-In-Insurance
🤖 Understanding 4 Waves of AI
💡 This is my humble attempt to research and correlate FOUR major waves or generations of Artificial Intelligence (AI).
🤓 I brought some generic industry use cases and researched what Salesforce offers in various Einstein services.
🥵 As a vast majority of Einstein offerings are available, it is possible to miss out on quoting some names. Please be kind, and excuse me for that.
💬 Drop your favourite AI examples, thoughts and Einstein services that correlate with this content.
#Salesforce #AI #Einstein #EinsteinAI
🔹How will AI-based content-generating tools change your mission and products?
🔹This complimentary webinar [ON-DEMAND] explores multiple use cases that drive adoption in their early adopter customer base to provide product leaders with insights into the future of generative AI-powered businesses, and the potential generative AI holds for driving innovation and improving business processes.
AI in Insurance: How to Automate Insurance Claim Processing with Machine Lear...Skyl.ai
About the webinar
Insurance companies are looking at technology to solve complexity created by presence of cumbersome processes and presence of multiple entities like actuaries, support team and customers in the claim processing cycle.
Today, a lot of insurance companies are opting for Machine Learning to simplify and automate the processes to reduce fraudulent claims, predict underwriting risks, improve customer relationship management. This automated insurance claim process can remove excessive human intervention or manual errors and can report the claim, capture damage, update the system and communicate with the customers by itself. This leads to an effortless process enabling clients to file their claims without much hassle.
In this webinar, we will discuss how insurers are increasingly relying on machine learning to improve claim processing efficiency and increase ROI.
What you'll learn
- How Insurance companies are using ML to drive more efficiency and business gain
- Best practices to automate machine learning models
- Demo: A deeper understanding of the end-to-end machine learning workflow for car damage recognition using Skyl.ai
A Framework for Navigating Generative Artificial Intelligence for EnterpriseRocketSource
Generative AI has dominated the headlines recently, which has caused many enterprises to put a full stop to implementing this technology until they can understand what’s behind the glitz and glamour. What if we shifted the conversation? What if the focus became a fresh, incremental approach to embracing the opportunities with generative artificial intelligence to keep organizations moving upward on the S Curve of Growth?
Brands stay relevant and solve complex problems by testing the barometer for one thing — will a new strategy, tool, or piece of technology improve humanity?
Human connections are more vital than using shiny new tools or technology. As your teams work to steer clear of the temptation to do what everyone else is doing in uniform, this post will highlight how to stand out, compete, and do so with less risk in today’s world of generative AI overload.
Insurers need to evolve and view AI as a game-changing technology. Learn how 86% of UKI Insurers agree that technology is advancing at an exponential rate.
The financial industry is witnessing an emerging trend of Large Language Models (LLMs) applications to improve operational efficiency. This article, based on a round table discussion hosted by TruEra and QuantUniversity in New York in May 2023, explores the potential use cases of LLMs in financial institutions (FIs), the risks to consider, approaches to manage these risks, and the implications for people, skills, and ways of working. Frontline personnel from Data and Analytics/AI teams, Model Risk, Data Management, and other roles from fifteen financial institutions devoted over two hours to discussing the LLM opportunities within their industry, as well as strategies for mitigating associated risks.
The discussions revealed a preference for discriminative use cases over generative ones, with a focus on information retrieval and operational automation. The necessity for a human-in-the-loop was emphasized, along with a detailed discourse on risks and their mitigation.
A joint report between EY and LSE with contribution from Seldon. This report describes research undertaken by The London School of Economics and Political Science on behalf of EY Financial Services to investigate the use of Artificial Intelligence and Machine Learning and to provide one use case for each of the following sectors; Insurance, Banking & Capital Markets, and Wealth & Asset Management.
COVID-19 has increased the need for intelligent decisioning through AI, but ROI is not guaranteed. Here's how to accelerate AI outcomes, according to our recent study.
Explore the risks and concerns surrounding generative AI in this informative SlideShare presentation. Delve into the key areas of concern, including bias, misinformation, job loss, privacy, control, overreliance, unintended consequences, and environmental impact. Gain valuable insights and examples that highlight the potential challenges associated with generative AI. Discover the importance of responsible use and the need for ethical considerations to navigate the complex landscape of this transformative technology. Expand your understanding of generative AI risks and concerns with this engaging SlideShare presentation.
In this session, you'll get all the answers about how ChatGPT and other GPT-X models can be applied to your current or future project. First, we'll put in order all the terms – OpenAI, GPT-3, ChatGPT, Codex, Dall-E, etc., and explain why Microsoft and Azure are often mentioned in this context. Then, we'll go through the main capabilities of the Azure OpenAI and respective usecases that might inspire you to either optimize your product or build a completely new one.
Technology and Innovation in Insurance– Present and Future Technology in Indi...Dr. Amarjeet Singh
Insurance companies are unique — most of their interactions with customers happen through an agent. In effect, a chunk of technology investment goes into improving agent experience. Insurers have developed systems to advise agents on products tailored for specific customers, depending on their history with the insurer and income band. Bajaj Allianz Life Insurance has a mobile app to hire agents. This helps in training, exams and licensing. It has brought on board 15,700 consultants digitally in the past year, cutting down processing time by half.
Insurers have launched mobile phone apps, making it easier for customers to transact with them. They are, slowly and surely, moving towards paperless claims as well. These are, however, only the first steps in digital transformation. Changing core systems is expensive and complicated. So, most transformation initiatives focus on improving systems of engagement with customers.
With the constant advancements and better use of digital tools in the last few years; most of these challenges seem to be addressed efficiently. While technologies such as Robotic Process Automation (RPA), Artificial Intelligence (AI), Block chain, and Advanced Analytics are working as promoters to enhance the importance of insurance, the insurers are working hard to create a more streamlined and integrated insurance system.
Data has always played a central role in the insurance industry, and today, insurance carriers have access to more of it than ever before. We have created more data in the past two years than the human race has ever created. Insurers—like organisations in most industries—are overwhelmed by the explosion in data from a host of sources, including telematics, online and social media activity, voice analytics, connected sensors and wearable devices. They need machines to process this information and unearth analytical insights. But most insurers are struggling to maximise the benefits of machine learning.
Data has always played a central role in the insurance industry, and today, insurance carriers have access to more of it than ever before. We have created more data in the past two years than the human race has ever created. Insurers—like organisations in most industries—are overwhelmed by the explosion in data from a host of sources, including telematics, online and social media activity, voice analytics, connected sensors and wearable devices. They need machines to process this information and unearth analytical insights. But most insurers are struggling to maximize the benefits of machine learning.
Harnessing the data exhaust stream: Changing the way the insurance game is pl...Accenture Insurance
Vast new data streams create opportunities for insurers to identify and act upon hidden insights, but they also open the door for new business models and competitors.
Data-driven insights make it possible to create new products and new revenue streams, typically in partnership with players from outside the industry.
Harnessing external data is a complex undertaking, but insurers can start by developing a comprehensive plan and then undertaking specific, high-return initiatives that build momentum and help transform the enterprise into a winning competitor in the new digital arena.
Harnessing the data exhaust stream: Changing the way the insurance game is pl...Accenture Insurance
Learn how external insurance data and analytics is changing everything, from pricing risk to interacting with customers. Read more: https://www.accenture.com/us-en/insight-harnessing-external-data-stream
Are you ready to be an Insurer of Things? How the Internet of Things is chang...Accenture Insurance
The traditional business model for insurance, though still a tremendous source of revenue, is becoming less sustainable in the long term due largely to the rapid innovation that the Internet of Things is driving throughout the economy. Yet, in the midst of this disruption there is opportunity. Insurers will need to dramatically reshape their business model, combining insurance with technology, ecosystem services and partners.
100 insurance companies were surveyed to understand how they view their journey to operations maturity.
Our experience indicates that operations maturity can translate into tech-savvy ways to acquire customers faster or discover new revenue growth.
This means combining data, technology, processes and people into an intelligent, data-driven— and more resilient—operating model.
How Insurers Can Tame Data to Drive InnovationCognizant
To thrive among entrenched rivals and compete more effectively with digital natives, insurers will need to get their data right. That will mean moving to more responsive, AI-enabled architectures that accelerate data management and deliver insights that drive business performance.
The Accenture Technology Vision for Insurance 2018 report highlights how rapid advances in technology are improving the ways people work and live, and how insurers are reinventing their businesses to keep pace.
Leading insurers will reinvent their businesses to partner with customers and society. Explore five trends that will profoundly change the future of insurance.
In the year 2014, while e-commerce was majorly a business-to-consumer (B2C) game a platform best constructed for consumer brands and retail transactions, business-to-business (B2B) was barely on the limelight. B2B ordering solutions were very few, pricey, and complex in nature. Because of this, it was difficult for small wholesale distributors and retailers to implement B2B ordering solutions in their businesses.
Open Insurance - Unlocking Ecosystem Opportunities For Tomorrow’s Insurance I...Accenture Insurance
For early adopters, open insurance offers new revenue streams, increased customer engagement and continued market relevance.
Learn more: https://www.accenture.com/us-en/insights/insurance/open-insurance
Open Insurance - Unlocking Ecosystem Opportunities For Tomorrow’s Insurance I...Accenture Insurance
For early adopters, open insurance offers new revenue streams, increased customer engagement and continued market relevance.
Learn more: https://www.accenture.com/us-en/insights/insurance/open-insurance
Modernizing Insurance Data to Drive Intelligent DecisionsCognizant
To thrive during a period of unprecedented volatility, insurers will need to leverage artificial intelligence to make faster and better business decisions - and do so at scale. For many insurers, achieving what we call "intelligent decisioning" will require them to modernize their data foundation to draw actionable insights from a wide variety of both traditional and new sources, such as wearables, auto telematics, building sensors and the evolving third-party data landscape.
Using Adaptive Scrum to Tame Process Reverse Engineering in Data Analytics Pr...Cognizant
Organizations rely on analytics to make intelligent decisions and improve business performance, which sometimes requires reproducing business processes from a legacy application to a digital-native state to reduce the functional, technical and operational debts. Adaptive Scrum can reduce the complexity of the reproduction process iteratively as well as provide transparency in data analytics porojects.
It Takes an Ecosystem: How Technology Companies Deliver Exceptional ExperiencesCognizant
Experience is evolving into a strategy that reaches across technology companies. We offer guidance on the rise of experience and its role in business modernization, with details on how orgnizations can build the ecosystem to support it.
The Work Ahead: Transportation and Logistics Delivering on the Digital-Physic...Cognizant
The T&L industry appears poised to accelerate its long-overdue modernization drive, as the pandemic spurs an increased need for agility and resilience, according to our study.
Enhancing Desirability: Five Considerations for Winning Digital InitiativesCognizant
To be a modern digital business in the post-COVID era, organizations must be fanatical about the experiences they deliver to an increasingly savvy and expectant user community. Getting there requires a mastery of human-design thinking, compelling user interface and interaction design, and a focus on functional and nonfunctional capabilities that drive business differentiation and results.
The Work Ahead in Manufacturing: Fulfilling the Agility MandateCognizant
According to our research, manufacturers are well ahead of other industries in their IoT deployments but need to marshal the investment required to meet today’s intensified demands for business resilience.
The Work Ahead in Higher Education: Repaving the Road for the Employees of To...Cognizant
Higher-ed institutions expect pandemic-driven disruption to continue, especially as hyperconnectivity, analytics and AI drive personalized education models over the lifetime of the learner, according to our recent research.
Engineering the Next-Gen Digital Claims Organisation for Australian General I...Cognizant
In recent years, insurers have invested in technology platforms and process improvements to improve
claims outcomes. Leaders will build on this foundation across the claims landscape, spanning experience,
operations, customer service and the overall supply chain with market-differentiating capabilities to
achieve sustainable results.
Profitability in the Direct-to-Consumer Marketplace: A Playbook for Media and...Cognizant
Amid constant change, industry leaders need an upgraded IT infrastructure capable of adapting to audience expectations while proactively anticipating ever-evolving business requirements.
Green Rush: The Economic Imperative for SustainabilityCognizant
Green business is good business, according to our recent research, whether for companies monetizing tech tools used for sustainability or for those that see the impact of these initiatives on business goals.
Policy Administration Modernization: Four Paths for InsurersCognizant
The pivot to digital is fraught with numerous obstacles but with proper planning and execution, legacy carriers can update their core systems and keep pace with the competition, while proactively addressing customer needs.
The Work Ahead in Utilities: Powering a Sustainable Future with DigitalCognizant
Utilities are starting to adopt digital technologies to eliminate slow processes, elevate customer experience and boost sustainability, according to our recent study.
AI in Media & Entertainment: Starting the Journey to ValueCognizant
Up to now, the global media & entertainment industry (M&E) has been lagging most other sectors in its adoption of artificial intelligence (AI). But our research shows that M&E companies are set to close the gap over the coming three years, as they ramp up their investments in AI and reap rising returns. The first steps? Getting a firm grip on data – the foundation of any successful AI strategy – and balancing technology spend with investments in AI skills.
Operations Workforce Management: A Data-Informed, Digital-First ApproachCognizant
As #WorkFromAnywhere becomes the rule rather than the exception, organizations face an important question: How can they increase their digital quotient to engage and enable a remote operations workforce to work collaboratively to deliver onclient requirements and contractual commitments?
Five Priorities for Quality Engineering When Taking Banking to the CloudCognizant
As banks move to cloud-based banking platforms for lower costs and greater agility, they must seamlessly integrate technologies and workflows while ensuring security, performance and an enhanced user experience. Here are five ways cloud-focused quality assurance helps banks maximize the benefits.
Getting Ahead With AI: How APAC Companies Replicate Success by Remaining FocusedCognizant
Changing market dynamics are propelling Asia-Pacific businesses to take a highly disciplined and focused approach to ensuring that their AI initiatives rapidly scale and quickly generate heightened business impact.
The Work Ahead in Intelligent Automation: Coping with Complexity in a Post-Pa...Cognizant
Intelligent automation continues to be a top driver of the future of work, according to our recent study. To reap the full advantages, businesses need to move from isolated to widespread deployment.
The Work Ahead in Intelligent Automation: Coping with Complexity in a Post-Pa...
The Insurance AI Imperative
1. Digital Business
The Insurance AI
Imperative
The insurance industry – from product development to
underwriting to claims – is being fundamentally transformed
by AI technologies. Although some companies are investing
aggressively in AI to slash costs while also enhancing the
customer experience, most insurers will need to accelerate
their efforts or risk discovering that it has become too late to
catch up.
February 2019
2. 2 / The Insurance AI Imperative
Digital Business
Executive Summary
Artificial intelligence is disrupting every step in the insurance
value chain, including chatbots that deliver customized
product recommendations and manage customer service
inquiries; underwriting that occurs in minutes by analyzing
a broader array of external data sources; and automated
claims processing that analyzes images of damage provided
by the policy holder or by drones. Meanwhile, insurtechs
are leveraging AI capabilities to introduce a new range of
innovative products such as instantly customizable life
insurance and on-demand property coverage.
While some major insurance companies are investing aggressively in AI, most insurers are
moving slowly, unsure how best to deploy these technologies. In our 2018 AI survey, only
51% of insurance executives said that AI technologies were extremely or very important to
their company’s success today, which was lower than for any other industry.1
Insurers need to pick up the pace of investment in AI or they will be left behind. In this
process, they can benefit by considering the following guidelines:
❙❙ Cast a wide net. Insurers should assess each aspect of their organizations to identify how
best to deploy AI. Rather than being a technology issue, the effort should begin with the
company’s business needs and opportunities and where AI can generate business value.
❙❙ Look for opportunities to leverage data. For each business process, insurers need to
identify the data required to take advantage of AI, including data from external sources
such as wearables and from connected devices in the Internet of Things (IoT). Most
insurers will need to develop stronger data governance to ensure they have access to
accurate, timely data.
❙❙ Acquire AI expertise. Additional AI skills will be required through a combination of
hiring additional talent, partnering with third-party experts and partnering with, or even
acquiring, insurtech start-ups.
3. Creating Competitive Advantage from the Inside Out / 3
Digital Business
❙❙ Encourage experimentation – and discipline. Insurers must develop a tolerance for
experimentation but combine that with rigorous measurement of ROI so that failures can
be terminated quickly and successful pilots can be moved into full implementation.
❙❙ Prepare business processes for digitization. Layering an AI solution on top of a poorly
designed process will squander its potential. Insurers should first optimize the business
process through such approaches as system changes, standardization and consolidation
of fragmented systems.
❙❙ Design responsible AI. Applications that make inappropriate or biased decisions can
inflict significant reputational damage and loss of shareholder value. Yet, in our AI study,
only 41% of insurance executives said ethical considerations play a critical or significant
role at their companies when they develop or employ AI applications. Just as they have
ethics officers, insurers will need to establish AI ethics policies and procedures to ensure
their applications are designed ethically and continue to operate appropriately as they
learn and adapt over time.
Making the transition to an AI future is no longer optional. The market won’t be kind to
companies that choose to sit on the sidelines and wait until the path forward comes into
focus. To remain relevant, insurers will need to move quickly to infuse AI throughout their
strategy and operations. Those that don’t may discover that it is too late to catch up with
their more forward-looking competitors.
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Digital Business
On the precipice of disruptive change
AI technologies such as machine learning (ML), neural networks,
natural language processing (NLP) and computer vision are poised to
reimagine the entire insurance lifecycle from customer acquisition to
claims processing. These technologies can handle an ever-expanding
range of tasks more quickly and accurately than humans, while freeing
employees to focus on more complex and higher-value activities.
Many insurers have been slow to recognize the fundamental transformation underway. As mentioned
above, in our 2018 AI study of executives in the U.S. and Europe, only 51% of insurance executives
considered AI technologies to be extremely or very important to their company’s success today, the
lowest percentage of any industry (see Figure 1, page 6). Looking ahead three years, only 36% of insurance
executives felt AI would be very important, which was again lower than for any other industry.
Consistent with this lukewarm assessment of AI’s importance, only 68% of insurance executives said they
were familiar with an AI project at their company and, among this group, only 18% were familiar with an AI
project that was fully implemented.
AI is combining with three trends that are changing the face of the industry: an explosion of data, the
entrance of nontraditional competitors and the rise of ecosystems.
Data explosion
Insurers now have the opportunity to gain actionable insights from a proliferating variety of new data
sources, such as fitness trackers, drones, smart home appliances and telematics in automobiles. These data
sources are improving underwriting and claims processing, as well as enabling products where customers
agree to share their data with providers in exchange for improved service or lower premiums. One study
found that 80% of consumers across 11 countries said they would be willing to share more personal data
with companies in exchange for rewards.2
Innovative carriers are taking advantage of this trend. Progressive Insurance is applying ML to the 14
billion miles of driving data it has collected to improve its predictive modeling, while offering discounts to
customers who agree to provide their driving data.3
5. Creating Competitive Advantage from the Inside Out / 5
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AI is combining with three trends
that are changing the face of the
industry: an explosion of data,
the entrance of nontraditional
competitors and the rise of
ecosystems.
6. 6 / The Insurance AI Imperative
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Response base: 50 insurance executives
Source: Cognizant
Figure 1
Importance of AI technologies to company success
T O D A Y
Extremely important Very important
Extremely important Very important
53%
47%
36%
53%
41%
50%
Technology
Manufacturing
Insurance
Financial Services
Healthcare
Retail
40%
38%
46%
32%
42%
28%
93%
85%
82%
85%
83%
78%
29%
17%
21%
25%
14%
17%
Financial Services
Healthcare
Retail
Technology
Manufacturing
Insurance
45%
43%
38%
41%
45%
34%
74%
60%
59%
66%
59%
51%
T H R E E Y E A R S F R O M N O W
7. The Insurance AI Imperative / 7
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Nontraditional competitors at the gates
Traditional insurers are facing new competition from insurtechs, which leverage advanced technologies
to introduce innovative products. McKinsey estimates there are now 1,500 insurtechs globally, with 38%
headquartered in the U.S.4
Many insurtechs are leveraging AI technologies to slash costs, speed response times and improve
customer service. Life insurer Ladder, for example, offers flexible policies that allow customers to change
the size of their policy instantly online, rather than having to cancel and reapply for a new policy.5
Although insurtechs are demonstrating what AI technologies make possible, they are typically
undercapitalized and lack strong brands. But technology giants, like Amazon and Google, are also eyeing
insurance markets. These major players bring assets that insurtech start-ups lack: strong balance sheets,
well-known brands and a large base of loyal customers.
Amazon has applied to become an insurance agent in India, selling life, health and general insurance,
while also investing $12 million in Acko, an Indian insurtech start-up.6
In October 2018, the company
formed a partnership with The Travelers Companies to create a “digital storefront” in the U.S. that will offer
customers smart home kits and risk management information. Amazon is also reportedly discussing with
major European insurance companies its willingness to offer its products through an insurance comparison
site in the UK. 7
Google has purchased a minority stake in Applied Systems, a provider of technology solutions to insurance
agencies, and has said it is scouting for additional investment opportunities in insurance technology
companies.8
There are indications that consumers would be receptive to purchasing insurance from a major
technology firm. A 2018 survey by J.D. Power found that 20% of consumers would be willing to obtain their
homeowners insurance from either Amazon or Google, with millennials even more open to the idea.9
Rise of ecosystems
Technology companies are creating ecosystems that will define the rules of competition in a broad range
of markets including insurance. Ecosystems consist of a platform with core components provided by the
owner that are extended by applications devised by independent companies to offer new products or
services to end users. Ecosystems are arising in a variety of areas relevant to insurance such as housing,
healthcare, financial planning and personal mobility. Learning how to compete on these ecosystems will be
a new experience for insurance companies.
8. 8 / The Insurance AI Imperative
Digital Business
Insurers could also aspire to manage ecosystems themselves. For example, the Chinese insurer Ping An
has developed deep relationships with more than 350 million customers by providing a range of services
through its web portal One Account that includes auto sales, real estate listings and banking services.10
Ping An’s ecosystem has helped it become the second strongest brand in insurance according to Brand
Finance and is ranked 10 on the Forbes Global 2000 list.11
Building tomorrow’s insurance company today
AI will require insurers to rethink every facet of their organizations, from
front office to back office. Many of the operational tasks performed
in an insurance company each day are repetitive, manual tasks using
structured data that are susceptible to automation, thus slashing costs.
Beyond reducing costs, AI applications will enhance the customer
experience by providing personalized product recommendations, rapid
underwriting and quick resolution of claims.
Enhancing the customer experience
Most insurers have focused on customer service in their AI projects to automatically capture customer
information and respond to inquiries. In our survey, insurance executives who were familiar with AI projects
at their companies most often cited a customer service AI project (56%).
AI tools allow customers to provide information to a chatbot and quickly receive personalized product
recommendations and quotes. Consumers and small-to-medium sized businesses will be able to purchase
most insurance products online in minutes, aided by AI tools that provide instant underwriting and pricing
based on automated analysis of a customer’s profile, pulling in relevant third-party data sources. Amelia,
IPsoft’s virtual agent, is used at insurers such as MetLife and Credit Suisse to combine ML with NLP to
make decisions based on real-time conversations.12
Human agents will be available for additional advice, supported throughout the process by AI tools that
analyze the customer’s financial profile. Call-center representatives can even receive coaching tips from AI
tools that assess the sentiment and mood of a caller while a call is in progress. (See Quick Take on page 10.)
Faster, more accurate underwriting
AI technologies can now be applied to a wider variety of data sources to improve the accuracy of risk
assessments and quotes. For example, these tools can automatically analyze real-time data from security
systems or from flyovers using drones when underwriting homeowner-insurance applications. Analysis of
telematic data can provide insight into driving behavior such as how fast the customer drives on average,
9. The Insurance AI Imperative / 9
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how quickly they accelerate, whether they drive faster than the speed limit, etc. Zurich Insurance Group has
partnered with the Swedish insurtech Greater Than to allow it to analyze a potential customer’s individual
driving data compared to a set of reference profiles created from more than a decade’s-worth of collected
data, allowing the company to customize the premium based on the individual customer’s driving behavior.13
Half of all U.S. consumers say they would be more likely to purchase life insurance if it was priced without
a physical exam, and Haven Life, a subsidiary of MassMutual, is providing that option.14
The company uses
ML applied to third-party data such as prescription and driving records to offer real-time underwriting,
allowing customers to buy life insurance online in just minutes without a medical exam.15
Reimagining claims processing
AI will allow the processing of most personal and small business claims to be automated, substantially
reducing operating costs. For example, U.S. insurers Allstate and Farmers use image recognition software or
computer vision to settle auto claims without the need for a visit from an adjustor.16
Home sensors, drones
and smart devices will often generate a first notice of loss (FNOL) before the customer needs to contact the
insurer. Rather than address straightforward claims, adjusters will concentrate on analyzing complex claims
and investigating potential instances of fraud.
10. 10 / Creating Competitive Advantage from the Inside Out
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Quick Take
Customer care done right with
real-time AI
We worked with a leading global property and casualty (P&C) insurer to apply AI capabilities
to improve the customer experience during the process of filing a claim with the call-center
staff. The insurer was experiencing extremely high call volumes of roughly 8,000 a month.
Although the calls were recorded by its third-party call-center software, it had the personnel
to review only about 40, and didn’t know whether these were truly representative of its
entire workload. Even more important, this after-the-fact analysis couldn’t advise customer-
service representatives in real time on how to quickly provide key information or how best to
serve a customer who is upset and worried after a loss.
Using IBM’s Watson, we analyzed customer sentiment during calls virtually in real time and
designed analytics to help the representatives gauge caller sentiment, as well as providing
prompts for them to respond with empathy – with questions and information relevant to a
customer’s situation.
Real-time recordings were translated into text. Then Watson was taught how to recognize
common call elements and the steps on the insurer’s call checklist. We then customized
the solution to the P&C insurance sector, incorporating into the lexicon terms specific
to our client’s business. A dashboard was created that showed agents how to proceed
correctly through a call. With speech analytics applied to calls as they happen, the checklist
automatically updates to show which tasks have been performed and which remain.
Supervisors can now monitor all 8,000 monthly calls while slashing the review time by as
much as 40%. By applying language analytics to the caller’s diction, word choice and tone,
agents can better gauge the sentiment of a caller and receive deeper insights from real-time
personality profiling and conversation cues. The results are expected to be shorter calls and
improved customer satisfaction.
11. Creating Competitive Advantage from the Inside Out / 11
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AI-powered underwriting of
flood insurance
One global reinsurer client sought an accurate assessment of the risk of reinsuring specific
tranches of flood insurance coverage for its clients and the ability to model risk factors by
geography down to the zip code level. We employed an intelligent algorithmic process to
analyze government flood hazard maps, as well as publicly available census and housing
data, and overlaid this information with our client’s internal database of historical claims.
The results of the analysis were captured in a dashboard with visualizations. By using NLP
to analyze digitized documents and combining this information with geospatial data on
flooding, our client can more accurately assess the frequency and severity of flood risk
by geography, and drill down to assign risk scores to individual homes or businesses. The
solution generated a 10-fold reduction in underwriting throughput time and aims to
improve acceptance rates by 25%. We have worked with the client to apply similar solutions
to evaluate risk in portfolios of policies for life and health insurers, and to assess risks in the
automobile insurance marketplace.
Quick Take
12. 12 / The Insurance AI Imperative
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These tools will help reduce claims leakage – the difference between what is paid out on a claim plus
expenses and what should have been paid plus expenses if best practices had been followed – which is
commonly believed to be about 5-10% of total U.S. P&C personal auto and home claims paid each year. 17
AI
technologies allow insurers to automatically audit thousands of open claims when action can still be taken,
rather than being content with reviews of a sample of claims after they have closed.
Insurers will be able to move beyond the traditional reactive model of paying claims after a loss to adopt
a proactive, preventive model of helping customers avoid losses in the first place. Commercial property
insurers can use data generated by smart buildings to help their customers reduce the risk of fire or water
damage. Data generated by telematics in vehicles can allow auto insurers to provide customers with feedback
on their driving behavior.
Some companies are taking innovative approaches to leverage AI to make claims processing a key part of
the customer value proposition. The insurtech start-up Lemonade, which provides renters and homeowners
insurance, leverages AI and behavioral economics to approve claims in minutes rather than days, while
keeping service costs low.
Crafting an AI strategy
Many insurance companies are moving slowly to implement AI
solutions, unsure what investments to make in an environment where
technology evolves rapidly. The lack of strategic focus is illustrated
by the fact that our survey found roughly the same percentages of
insurance executives who said they were using each of a series of
specific AI technologies in their projects: computer vision (44%),
analysis of natural language (44%), virtual agents (41%), advice engines/
ML (35%) and smart robotics/autonomous vehicles (35%). This
suggests that insurers are not yet at the point of understanding which
technologies can provide the greatest benefits to the business.
Creating an effective AI strategy should start with the company’s business needs and opportunities rather
than with the technology’s capabilities. Executives in the lines of business should play a leading role in this
effort, but many insurance companies find this difficult to achieve. One of the highest-rated challenges
in employing AI applications was securing buy-in by businesses, which was rated as extremely or very
challenging by 44% of insurance executives in our survey (see Figure 2, next page).
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AI’s key obstacles
Percentage of insurance executives who found AI extremely or very challenging to employ
Access to accurate/timely data
Securing talent
Time required for generating benefits
Retraining employees whose job responsibilities have
been changed or eliminated by AI
Securing buy-in by businesses
Attracting and retaining professionals with appropriate
experience and skills
Ability of employees to interact effectively
with AI applications
Interactions between different AI applications
Securing senior management commitment
Measuring impacts
Securing adequate budget
Monitoring and addressing potential instances of unethical
behavior, such as bias, in AI applications
Developing legal contracts that address the risk that
AI applications could make or support decisions with
negative impacts on customers
54%
46%
44%
48%
44%
44%
42%
42%
40%
40%
35%
36%
36%
Figure 2
Response base: 50 insurance executives
Source: Cognizant
14. Digital Business
14 / Creating Competitive Advantage from the Inside Out
Although each company’s situation is unique, the following are helpful guidelines for developing an AI plan.
❙ Cast a wide net. Insurers should conduct a comprehensive examination of their business processes to
identify where AI technologies can be applied, the potential benefits, the investment and time required
to achieve them, and the technical and human capabilities required. There is no recipe for leveraging the
potential of AI. Each business challenge requires different AI technologies, techniques and approaches.
To ensure the underlying algorithms in AI technologies “understand” the business context in which they
operate, cross-functional teams should be established to identify potential AI-enabled improvements
to processes and products.
❙ Look for opportunities to leverage data. As insurers assess how AI can be applied, they need to
identify what data is required for each business process to operate optimally. Generating value from
AI depends on access to accurate data, which is a challenge for many insurers. Having access to
accurate and timely data was the AI issue most often rated by insurance executives as extremely or very
challenging out of 13 potential obstacles to employing AI (see Figure 2, previous page). Stronger data
governance will be required to address fragmented data architectures that are plagued by multiple
legacy administrative systems and databases, often the result of growth through a series of acquisitions.
In addition, insurers will need to gain experience in leveraging external data generated by the explosion
of IoT-connected devices.
❙ Acquire AI expertise. Access to experience and skills with rapidly developing AI technologies is
essential. In our survey, 46% of insurance executives said that securing talent was extremely or very
challenging for their company’s AI efforts (Figure 2). In addition to hiring talent, more insurers are
partnering with or acquiring insurtech start-ups. For example, Allianz has invested in the digital insurer
Lemonade, MassMutual has launched the insurtech start-up Haven Life (mentioned above), and Aviva
Canada has created its InsurTech Growth Program to work with innovative start-ups.18
❙ Encourage experimentation – and discipline. There are no ready-made, turnkey AI solutions, and
each insurer will need to chart its own path forward. For this reason, managed experimentation will
be key. Insurers will need an increased tolerance for risk-taking and innovation, and balance that with
rigorous testing and measurement of ROI and tangible business value. It will be important to quickly
identify and terminate failures, while moving successful pilot projects into full production.
❙ Prepare business processes for digitization. Applying AI technologies to a poorly designed,
fragmented business process will lead to disappointing results. Insurers should consider first optimizing
processes through such approaches as system changes, standardization and consolidation. In some
cases, insurers will need to integrate fragmented systems that have resulted through a series of mergers
and acquisitions – for example, by using a business-process-as-a-service (BPaaS) solution.
15. The Insurance AI Imperative / 15
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Designing responsible AI
To capture the full potential of AI, people must trust it as a responsible
partner. AI applications will interact with customers, employees and
partners, running business processes and making important decisions.
Although some consumers have been nervous about interacting with
AI systems, as these technologies become more familiar, their attitudes
are becoming more positive. In a global survey by the IoT solutions
provider ARM, of consumers who knew at least something about
AI, 61% believed it would make society better, compared to 22% who
thought it would make it worse.19
If AI applications are not well designed and managed, however, they could end up making inappropriate,
or even unethical, decisions, imperiling customer relationships and damaging the company’s reputation
and brand. The right governance structures are required to guide the design and use of AI applications
and to establish a process for monitoring and correcting AI behavior. To that end, insurers should consider
establishing an AI council to oversee their AI applications.
Building trust will require transparency – i.e., allowing people to understand how an AI application has
made its decisions. AI systems tend to be “black boxes” whose operations are opaque and make people
uncomfortable.
Although some consumers have been nervous about
interacting with AI systems, as these technologies become
more familiar, their attitudes are becoming more positive.
Digital Business
16. 16 / The Insurance AI Imperative
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Providing transparency will also be essential to complying with regulatory requirements such as the
European Union’s General Data Protection Regulation (GDPR), which applies to all companies wherever
headquartered that have access to the personal data of EU citizens. GDPR gives consumers the right to
require an explanation of any decisions taken by AI applications that affect them. This can be difficult with ML
applications, which are not explicitly programmed and where it may not be clear why a decision was made.
Insurers will need to build in the ability to drill down into an AI decision to understand which factors triggered it.
Insurers must also establish policies and procedures to ensure their AI applications are acting ethically.
This not only means designing ethical AI systems but also ensuring they continue to operate in ways that
are consistent with corporate and societal values. For example, AI applications that learn from historical
underwriting decisions could pick up gender or racial biases hidden in the data. Ethics will become more
important as AI becomes more ubiquitous and as ML applications increasingly “learn” from other AI
applications, rather than from human input.
Many insurance companies have not yet recognized the critical role of ethics in the success of AI. In our
survey, only 41% of insurance executives said that ethical considerations play a critical or significant role
when their company develops or employs AI applications. Every company has an ethics officer for human
decisions, and they will need to devote the same attention to the ethics of the decisions that are now being
turned over to AI systems.
Unless AI is seen to be responsible, it won’t be accepted by customers or embraced by employees.
Given the significant reputational damage and loss of shareholder value that can result from instances of
inappropriate or biased AI decisions, ensuring that AI applications operate ethically will need to be a key
element in an insurer’s AI strategy.
17. The Insurance AI Imperative / 17
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The way forward
AI is a disruptive force that will change insurance as we know it. Rather
than a technology issue, AI will become central to business strategy,
encompassing both the products offered and the customer experience
delivered.
Executives in the lines of business should lead the effort to assess how AI can generate business value and
increase ROI in business processes across the organization. An experimentation mindset will be essential,
as well as a tolerance for failure and risk-taking. Experiments that fail should be jettisoned quickly, while
successful pilot projects should be quickly scaled up into full implementation.
As AI systems take over many of the activities and decisions currently handled by humans, the impacts
on the organization will be far-reaching and change management will be essential. As less complex tasks
and decisions are increasingly taken over by AI applications, employees will shift to activities that are more
complex and provide greater value. Companies need to be ready to retrain their staff to provide them with
the skills needed for these higher-level responsibilities.
There will also need to be an important cultural transformation. At one time, we may have asked if a task was
handled by a machine or a human. In the near future, that distinction will become obsolete. Humans will
need to become comfortable working side by side with AI robots. As employees concentrate on higher-
value-added activities, such as complex issues or sensitive human interactions, they will rely on advice
from AI applications that identify unnoticed patterns in data, analyze customer profiles or even assess a
customer’s mood in real time during a call. For such complex situations, insurers will find that a combination
of human intelligence plus AI is more powerful than either on its own.
AI is driving changes that will soon make insurance virtually unrecognizable. Unless they move quickly,
some insurers might soon find they are no longer competitive in the AI-powered insurance environment
now emerging.
At one time, we may have asked if a task was handled
by a machine or a human. In the near future, that
distinction will become obsolete.
18. Digital Business
18 / The Insurance AI Imperative
Endnotes
1 Poornima Ramaswamy, James Jeude, Jerry A. Smith, “Making AI Responsible - and Effective,” Cognizant Technology Solutions, September
2018, www.cognizant.com/artificial-intelligence-adoption-for-business.
2 “The Data Exchange Economy: Consumers willing to share personal data for a fair return,” Aimia, September 8, 2015, www.aimia.com/
newsroom/news-releases/the-data-exchange-economy-consumers-willing-to-share-personal-data-for-a-fair-return/.
3 Kumba Sennaar, “How America’s Top 4 Insurance Companies Are Using Machine Learning,” Techemergence, July 19, 2018, www.
techemergence.com/machine-learning-at-insurance-companies/.
4 Ari Chester, Nick Hoffman, Sylvain Johansson and Peter Braad Olesen, “Commercial lines insurtech: A pathway to digital,” in Digital insurance
in 2018: Driving real impact with digital and analytics, McKinsey & Company, December 2018, www.mckinsey.com/~/media/McKinsey/
Industries/Financial%20Services/Our%20Insights/Digital%20insurance%20in%202018%20Driving%20real%20impact%20with%20
digital%20and%20analytics/Digital-insurance-in-2018.ashx.
5 Ainsley Harris, “4 Life Insurance Startups Asking Millennials To Face Their Mortality,” Fast Company, July 21, 2017, www.fastcompany.
com/40442090/these-life-insurance-startups-asking-millennials-to-face-their-mortality.
6 Nathan Golia, “Report: Amazon plans to become insurance agent,” Digital Insurance, September 18, 2018, www.dig-in.com/news/report-
amazon-plans-to-become-insurance-agent; John Russell, “ Amazon leads $12M investment in India-based digital insurance startup Acko.”
7 Bethan Moorcraft, “ Travelers announces major Amazon partnership,” Insurance Business, October 10, 2018, www.insurancebusinessmag.
com/us/news/breaking-news/travelers-announces-major-amazon-partnership-113456.aspx; Carolyn Cohn and Simon Jessop, “Amazon
‘considers’ setting up insurance comparison site in UK,” Reuters, August 16, 2018, https://uk.reuters.com/article/uk-amazon-insurance-
exclusive/exclusive-amazon-considering-uk-insurance-comparison-site-sources-idUKKBN1L10HH.
8 Mark Hollmer, “Google Invests in Applied Systems, a Maker of Cloud-Based Software for Independent Agencies,” Carrier Management,
October 16, 2018, www.carriermanagement.com/news/2018/10/16/185405.htm; Mark Hollmer, “ After Applied, Google ‘Definitely’ Looking
for Other InsurTech Investments,” Carrier Management, October 17, 2018, www.carriermanagement.com/news/2018/10/17/185465.htm.
9 Denny Jacob, “J.D. Power study: How interested are consumers in Amazon, Google for insurance?,” September 5, 2018, www.
propertycasualty360.com/2018/09/05/j-d-power-study-how-interested-are-consumers-in-am/.
10 Tanguy Catlin, Johannes-Tobias Lorenz, Jahnavi Nandan, Shinish Shgarma and Andreas Waschto, “Insurance beyond digital: The rise of
ecosystems and platforms,” in Digital insurance in 2018: Driving real impact with digital and analytics,” December 2018, www.mckinsey.
com/~/media/McKinsey/Industries/Financial%20Services/Our%20Insights/Digital%20insurance%20in%202018%20Driving%20real%20
impact%20with%20digital%20and%20analytics/Digital-insurance-in-2018.ashx.
11 Insurance 100: 2018, Brand Finance, March 2018, http://brandfinance.com/images/upload/brand_finance_insurance_100_2018_report_
locked.pdf; Shu-Ching Jean Chen, “Chinese Giant Ping An Looks Beyond Insurance To A Fintech Future,” Forbes Asia, June 2018, www.
forbes.com/sites/shuchingjeanchen/2018/06/06/chinese-giant-ping-an-looks-beyond-insurance-to-a-fintech-future/#69ef1e9d48f3.
12 George Anadiotis, “Who’s automating the enterprise? Meet Amelia and the future of work,” ZD Net, November 8, 2017, www.zdnet.com/
article/automating-the-enterprise-and-the-future-of-work/.
13 Peter Littlejohns, “AI in insurance: Seven company automation innovations,” Compelo, January 11, 2018, www.compelo.com/insurance/news/
ai-in-insurance/.
14 “2018 Insurance Barometer Study,” Life Happens and LIMRA, April 10, 2018, www.lifehappens.org/blog/2018-barometer-study/.
15 “How one company learned to reinvent itself daily in the AI age,” VentureBeat, Oct. 6, 2017, https://venturebeat.com/2017/10/06/how-one-
company-learned-to-reinvent-itself-daily-in-the-ai-age/.
16 Sara Castellanos, “Farmers Insurance Tests AI, Automation’s Potential For Speeding Up Claims Process,” The Wall Street Journal, June 28, 2018,
https://blogs.wsj.com/cio/2018/06/28/farmers-insurance-tests-ai-automations-potential-for-speeding-up-claims-process/; Will Mathis, “AI
Will Thrash the Economy Like a ‘Tsunami,’ Allstate CEO Says,” Bloomberg, June 28, 2018, www.bloomberg.com/news/articles/2018-06-28/ai-
will-thrash-the-economy-like-a-tsunami-allstate-ceo-says.
17 For a discussion of reducing claims leakage in property and casualty insurance, see Cognizant’s report Property & Casualty: Deterring
Claims Leakage in the Digital Age, www.cognizant.com/whitepapers/property-and-casualty-deterring-claims-leakage-in-the-digital-age-
codex3332.pdf.
18 “Lemonade Raises $120 Million Led by the SoftBank to Fund Global Expansion,” Insurance Journal, December 19, 2017, www.
insurancejournal.com/news/national/2017/12/19/474730.htm; Have Life web site, https://havenlife.com/about; Lyle Adriano, “Aviva Canada
selects the start-ups to participate in insurtech program,” Insurance Business, April 5, 2018, www.insurancebusinessmag.com/ca/news/
digital-age/aviva-canada-selects-the-startups-to-participate-in-insurtech-program-97039.aspx.
19 AI Today, AI Tomorrow, ARM / Northstar, https://pages.arm.com/rs/312-SAX-488/images/arm-ai-survey-report.pdf, accessed 1/22/19.
19. The Insurance AI Imperative / 19
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About the author
Michael Clifton
Senior Vice President, Insurance Strategy, Platforms & Ventures,
Cognizant
Michael Clifton leads the Emergent Business Group within Cognizant’s Global
Insurance Practice to bring next-generation venture start-ups, partnerships and
platforms to market. He is known as a senior leader and strategist with broad
expertise in assessing operations and business challenges, developing strategies
and delivering results. Michael brings extensive experience in driving innovation
and change for business transformation. He has a diverse background in the
insurance, financial services and technology industries (software and services), focused on delivering global
initiatives that align corporate targets. His specialties include IT modernization of infrastructure and legacy apps,
and guiding our global clients in developing digital narratives across the value chain. Michael has worked closely
with large-scale and geographically distributed work forces to enable change. Prior to Cognizant, Michael held
C-level positions at the Federal Bank of Boston and the Hanover Insurance Group, and he founded and divested
a number of start-up businesses. He can be reached at Michael.Clifton@cognizant.com | www.linkedin.com/
in/michael-clifton/.