Page 23 - Insurance Times April 2022

are adjudicated automatically but some require manual improve the quality of the end-to-end information
adjudication. An occurrence in the adjudication system pends management system which further enables greater claims
the claim and makes it an exception in an otherwise usual processing and consumer satisfaction.
claim exception process. In the absence of a workflow engine,
the claim would be sent to an employee for manual Barriers in implementing technology in
processing which would require additional time and increased the insurance industry
work in order to track down and assemble the mandatory
documentation. Insurers are getting ready for the future. They are among
the first to capitalise on technology for the advancement of
Predictive analytics for proactive their business. In the last few years, insurers have willingly
incorporated changes to improve their foundation for better
measures utilisation of new technology.
Machine learning backed predictive analytics has now
become the very essence of the latest services for businesses This is an ongoing process across the industry and several
that have embraced AI-powered solutions. This is not just insurers are devoting a large proportion of their resources to
limited to driving future insight into customer’s preferences fully realise the benefits of the transformation but in many
and customising relevant products. This smart capability is ways, AI is still viewed as a buzzword in the insurance industry.
helping insurance companies come up with rewards targeted There are several challenges the insurance industry is
at encouraging customers to look after their vehicles. If the expected to face in its attempts to implement AI -
vehicle does not get damaged,
companies don’t have to invest in
claim payment and management
processes and customers don’t have
to suffer from claim anxiety. With the
advancement of technology and the
growth of Internet of Things (IoT),
telematics, wearable tech, all of which
are set to become affordable and
popular, insurers can gain access to
intelligent data about their
customers. This data will empower
insurers to categorize consumers into
groups and provide them personalized
and dynamic pricing.

An uninterrupted flow of
business information

The fact that insurance ecosystem
involves piles of data and different
groups of employees varying from
agents, brokers, claim investigators to
market and support team isn’t exactly
new. Figure 1 (Source-McKinsey and Company)

Data processing capability of Artificial Intelligence can help Access to quality data
insurers create a strategically built ecosystem where There are several challenges in AI implementation, but the
information related to business and customer interactions first challenge is access to quality data. As it is said, you get
can smoothly flow from one specific department to another out what you put in, if the data fed is not good enough,
on a common platform without any chain breakers, helping insurers won’t achieve the benefits of the transformation.

The Insurance Times, April 2022 23