Emerging technologies enable the automation of several processes across all areas of industry. And, in particular, artificial intelligence (AI), biometrics, cloud and alternative reality facilitate the insurance sector’s own digital transformation and automating processes of the sector’s value chains. As stakeholders become more cognizant, we expect to see this trend continue to accelerate.
ML Based Biometrics
An example of this growing trend is French reinsurance giant, SCOR, which provides a risk calculator—Vitae CVR— that considers indicators such as waist circumference and how physically fit a client is in order to assess cardiovascular risk and provide better judgment on pricing decisions. This is enabled by the use of automated ML-based biometrics, the algorithms embedded in SCOR’s underwriting manual, SOLEM.
Automated Claims Equal Consistency
Another example is the use of CoreLogic’s cloud-based Claims Connect platform by U.S. home insurance startup, Openly. Qualitative data and claim consistency are assured, and homeowners and independent agents reap the benefits, with secure access to claims data and QX in real-time.
Ask the Analyst
Q: Through the power of emerging data such as AI, IoT, blockchain and more, would you agree that data is becoming the world’s most valuable asset?
A: Yes, I do agree that with the industry 4.0 revolution disrupting all business ecosystems, emerging technologies like AI, IoT and blockchain are generating use cases that assert the importance of reliable and valid data generated in shaping modern business practices.
Q: Let’s talk about data ubiquity. Is this digital transformation largely driven by sheer volume? Does the continuous and growing need for processing data need to be refined closer to the end user?
A: Certainly, ubiquitous data facilitates digital transformation across industrial value chains, but the disruption need not necessarily be benchmarked by sheer volume. Several instances reveal that data, as a matter of fact, must be refined across all stages of process life cycles to get the most accurate analysis. However, we should bear in mind that end-users should be in prime focus as satisfied clients, along with process efficiency, bringing in more revenue while developing lasting business relationships.
Q: So, you agree that emerging technologies also enrich the customer experience and the apparent advantages of automation. But, what about older generation users, who don’t have or cannot manage technology such as biometrics to access their details? Do you believe there will still be a human element of support in the insurance industry?
A: I believe so, yes! Technology, with its advancement, should ease human efforts and not increase them. If we observe carefully, we would notice that technologies like AI & RPA help humans to utilize their time and efforts in productive work while autonomously handling monotonous and redundant jobs. Speaking about biometrics, in particular, it requires human input in the form of fingerprint, face or retinal data (dental and other ways are possible too) while the enabled technology takes care of the rest of the computational and analytical work.
Q: Will insurers who are slower in formulating and implementing comprehensive data strategies get left behind?
A: Gone are those days when such hurdles surfaced. What we are witnessing now is a healthy adoption rate of emerging technologies among several insurers. As a matter of fact, they are keenly observing multiple technology ecosystems, like the metaverse and decentralized economy, to streamline their processes and serve their clients better.
Q: Data is being created and processed on an unprecedented scale with multiple industries – including the insurance sector – dedicating resources to harnessing valuable insights from it. Will the end user always still retain a level of control over personal information?
A: No doubt about that! Most companies take data privacy quite seriously and roll out data usage disclosures before engaging in an activity with a client. They generally provide clients with the option to manage website cookies to maintain mutual trust and confidence.
Q: Presumably, automated claims companies, such as American home insurance startup Openly, which offers an automated property claims management solution using CoreLogic’s Claims Connect platform, will not only increase the level of consistency but also help to rule out fraudulent claims. Can you tell us more?
A: Yes, sure! CoreLogic’s Claims Connect platform offers end-to-end workflow management that helps provide better experiences for both adjusters and policyholders. It integrates property data and insights to facilitate integration with insurtech solutions and weather verification services. While simplifying property claim workflow, the automated solution has the potential to avoid fraudulent claims and offer better assessments and resolutions.
Q: Do you have any other comments?
A: The days of traditional insurance are slowly fading with the advent of emerging technologies to better manage risk, automate claims, and enrich customer experiences. In this evolution, the sector is switching from the current ‘find and fix’ approach to ‘predict and prevent’, the trend which will accelerate as its stakeholders become more cognizant of the new technologies.
Looking to the Future
Choudhury concluded, “While nobody can forecast exactly what the insurance sector might look like in the future, insurers must get smart on emerging tech-based trends. They must start formulating and implementing a comprehensive data strategy to develop engaging services, generate insights, streamline processes and lower costs.”