The recent Efma-Accenture Innovation in Insurance Awards 2017 offered a valuable opportunity to learn how global insurers are leveraging digital technologies to transform themselves into everyday insurers. The innovations we saw are built on exponentially expanding digital technologies such as Artificial Intelligence (AI), Internet of Things (IoT), big data, analytics, and blockchain, and are being applied across the entire insurance value chain, from product development to claims. To that end, leading insurers are embracing new technologies to shape innovative business models and client value proposition. From simultaneous translations, to machine learning natural language interface, to self-driving cars, artificial intelligence is becoming the new User Interface.
Crucially, by using AI, claims leaders can empower and equip adjusters to add the valuable human touch to the claims process. As outlined in the Accenture Technology Vision for Insurance 2017 report, AI isn't just relegated to back-office functions. While some analysts have expressed concern with the long-term ramifications of such touchless processing, it's hard to argue with the customer experience that Lemonade provided--responsive, on-demand and delightful. To learn more about Accenture Technology Vision for Insurance 2017 and the era of the intelligent insurer and our 100- and 365-day plans to help insurers capture the opportunities of AI.
So, how can insurers effectively analyse data help to combat insurance fraud? In addition, telematics-based solutions are helping insurers reduce fraud and manage risk effectively using big data technologies. Organisations such as Octo Telematics have transformed how insurers assess risk, deliver crash and claim services and detect fraud. The ability to identify high-risk policies early on and spot more valuable business opportunities will save insurers time and money dealing with expensive and complex policies down the line.
Hastings is the latest British insurer looking to invest in artificial intelligence after chief executive Gary Hoffman pledged to hire hundreds of data experts. Mr Hoffman said the FTSE 250 company was looking to hire a "few hundred people in the next few years, particularly data analytics people and people involved in AI [artificial intelligence]." Insurers are competing to embrace artificial intelligence or machine learning to spot risky behaviour and fight fraudulent claims, with Aviva confirming earlier this year that it was looking to acquire start-ups in this space. Mr Hoffman's comments follow a strong first half for the group, which reported a 22pc boost in profits to £86.5m after cashing in on the rising number of people shopping for a bargain on price comparison websites.
The push towards automation is largely driven by customers' need for faster and more convenient processing of claims. " In a traditional insurance setup, an adjuster -- a person who assesses insurance claims goes to the field, inspects the insured instrument, whether a vehicle, a property or anything else and prepares an estimate. The use and adoption of new claim processing technology might also help new players compete with large, traditional insurance companies with a slow rate of adoption for automation. Clearly, the industry is moving toward increasing automated claims handling processes driven by technology-enabled solutions that yield benefits for both carriers and customers" the study says.
"According to a recent survey of the general public by AXA Insurance, 2% of respondents openly admitted to filing a fraudulent or exaggerated whiplash claim, and 11% knew someone who had done the same. These fraudulent insurance claims cost insurers millions, in turn raising premiums for the consumer. At the start of the year, market research firm Forrester predicted that 500,000 IOT devices would suffer a breach in 2017. Business Insider estimates that annual cyber insurance premiums will more than double over the next four years, growing from to $8 billion in 2020.
Far too often when a broker is sitting opposite a client or has them on the other end of the phone they are unable to draw up a single customer view that shows all the policies that the client has taken out such as for example home insurance, car insurance, business liability insurance, making it impossible for to offer timely and relevant offers. It is, however, possible for experienced system integrators to collect data from these different systems and form a single repository for a complete and organic single customer view. Add to this the contribution of Artificial Intelligence and companies will be enabled to further improve strategy and decision making across the business in an over-arching Business Intelligence framework. It is therefore highly cost effective to engage with a third-party consultant to help provide a roadmap of the process of improving user experience via greater digitalisation and to help implement or entirely outsource the process.
And some insurance pioneers are already taking AI to the customer frontline, using it to streamline claims, answer basic customer queries and, increasingly, to offer straightforward advice about complex products to customers in a codified and consistent manner. Whether deployed alone or to augment agents and employees, AI offers insurers the potential of significant efficiency gains and scalable ways to improve service. Such assistants will, in time, evolve to answer more difficult questions and support the sale of more complex insurance products. Spixii is in early testing for both P&C and life insurance sales.
For velocity, Complex even processing or stream processing allows us to handle the velocity of time; real time generated by countless sensors involved in every bit and inch of the supply chain process can be automatically fed into stream processing which uses defined algorithms to analyze it almost instantly. Even when the evidence starts becoming more and more corroborative and certain, the insurers may not collect adequate premium as actuarial modeling using historical claims data for ratemaking. Consequences of liability catastrophes cab include bodily injury, property damage or environmental damage Commercial general liability insurance covers such liability catastrophes usually. To improve our chances of collecting adequate premium so that insurers do not go bankrupt when a new liability catastrophe arises, big data tools with machine learning algorithms focused around emerging risk approach is being utilized.
Often called out for being slow to change, the insurance industry is beginning to catch up quickly on cognitive technologies. Often called out for being slow to change, the insurance industry is beginning to catch up quickly. AI is the theory and development of computer systems able to perform tasks normally requiring human intelligence, such as visual perception, speech recognition, decision-making and translation. Automating repetitive processes means tasks are completed quickly with fewer errors, opening up new opportunities for employees to focus on more customer-centric tasks.