Page 21 - Insurance Times December 2020

the latest data, Malaysia’s general in- Mr Biswas concludes: “Despite the Tadashi Yamanaka, Staff GM, Claims
surance business is expected to grow regulatory push, the recent surge in Administration Department at ADI,
at a compound annual growth rate infection rate across the country is said: “Tractable’s AI will change how
(CAGR) of 2.4% during 2019-2024 com- expected to further dampen growth insurance claims are processed. As a
pared to the earlier forecast growth of prospects. Weak export demand and result, drivers across Japan will see a
4.9%. uncertain economic scenario are ex- faster response time to their claims,

Sangharsan Biswas, Insurance Analyst pected to limit the short-term growth proving ADI’s commitment to deliver-
at GlobalData, comments: “Malaysian potential of the general insurance busi- ing the best possible service.”
economy is projected to contract by ness.” As well as Japan, MS&AD operates
4.9% in 2020, which will adversely im- MS&AD to use Tractable’s across over 40 countries, and its core
pact consumer spending. The recent units, MSI and ADI, have extensive for-
floods in the country will further AI across Japan to acceler- eign auto operations in Asia, the
dampen economic growth, resulting in ate recovery from auto Americas and Europe. MS&AD is the
lower premiums for general insurers.” fifth-largest P&C insurer globally.**
The slowdown is most evident in the accidents Alex Dalyac, co-founder and CEO, Trac-
motor insurance business, which ac- MS&AD, one of the world’s largest table, said: “It’s inspiring that one of
counted for 48.3% of the total general property and casualty insurers*, is to the world’s leading insurers is making
insurance premium in 2019. According use AI to accelerate how it processes a bold move into the future with Trac-
to the Malaysian Automotive Associa- auto claims, speeding up recovery for table. By deploying our AI across Ja-
tion (MAA), new vehicle sales regis- its policyholders. pan, MS&AD will enable its policyhold-
tered a decline of 41.1% during Janu- The AI solutions, created by technol- ers to benefit immediately from cut-
ary to June 2020, compared to the ogy company Tractable, use computer ting-edge technology that shortens the
same period in 2019, due to lockdown vision to analyse photos of car damage claims cycle by weeks.”
restrictions and stalled production. In auto insurance claims, time is fre-
- making sense of it as a human would,
Despite government efforts to improve in near-real time. quently lost scheduling visual apprais-
automobile sales through sales tax ex- MS&AD will deploy the AI across both als of the damage, which may occur
emptions, the uncertainty related to of its subsidiaries, Mitsui Sumitomo multiple times throughout the claim.
economic recovery and weak domestic By capturing images with AI and con-
demand is expected to impact new pre- Insurance (MSI) and Aioi Nissay Dowa verting them into instant appraisals,
mium collections for motor insurers. Insurance (ADI), where it will be used Tractable’s AI allows the insurer and
across hundreds of thousands of auto repairer to move claims forward im-
Similar decline is observed in property claims a year, accelerating how quickly mediately, accelerating the process by
insurance, which was already facing each is processed by as much as two as much as two weeks. For its adjust-
stagnancy. As per National Property weeks per claim. ers, MS&AD believes the advance will
Information Centre (NAPIC), property save as much as 360,000 hours of time
sales by value recorded a 31.5% de- These deployments signify wide-scale, every year.
cline in the first half of 2020. Decline mass adoption of AI across MS&AD’s Tractable’s AI has been trained on pho-
in construction activity and negative operations, and mean that vehicles will tos and human repair decisions across
sentiment for purchasing residential be returned to policyholders in Japan millions of historical accidents. Through
property due to the current economic more quickly than previously possible. experience, the AI has learned to un-
scenario has impacted the growth of Keiji Goto, GM for Technical Support, derstand damage to any passenger
property insurance business. Claims Division at MSI, said: “By apply- vehicle across Europe, Asia and the
Bank Negara Malaysia (BNM) is explor- ing Tractable’s market-leading AI, we Americas. The system continually im-
ing options to improve the business will be able to solve long-standing chal- proves as more insurers and repairers
potential of the country’s insurance lenges to the claims cycle, such as how benefit from its use.
business. BNM is introducing measures to accelerate supervisor approval of Tractable’s AI has processed over $1
such as detariffication of fire and mo- work carried out by our appraisers. billion in auto claims for the world’s top
tor insurance business lines. It is also We’re excited by the standard of the insurers, including Ageas UK, Covéa,
promoting digitization to enhance cus- AI and its capacity to help us make the largest auto insurer in the French
tomer interaction and improve opera- better, faster decisions for our custom- market, and Talanx-Warta, the sec-
tional practices of insurers. ers.” ond-largest auto insurer in Poland.
The Insurance Times, December 2020