Insurance Carriers: How to Win in 2020
Trends will be underpinned by solutions that enable increased efficiency, improve underwriting and risk management, and perpetually advances the customer offering and experience. These tangible evolving trends are:
Learn to derive value from your own data
Exploring their own information that has been collecting and accumulating over decades, can unlock incredible value for carriers. The particular attention to data infrastructure, lakes and warehouses aids in using this data, specifically the historical data that can now be mined for the execution of risk evaluation, providing coverage, taking losses and servicing all inquiries.
The use of Content Management Systems will start to transform into Intelligent Management Systems with returns manifesting in future-facing and future-proof decisions and actions. Carriers will transform into analytics-driven businesses by using AI and content mining capabilities, that converts traditional files into usable insights, along with external data sources.
Bring the CUO onboard
Effective risk management has been the bedrock of insurance carriers, and the Chief Underwriting Officer is there to ensure the books are made up of good risks, by maintaining solid underwriting disciplines and philosophies. And herein lies the digital unlock.
Technologies, be it AI, data science, and risk technologies, can contribute to improved underwriting time and accuracy, and really propel consistency in assessment and decision-making. It is now up to the Insurtech to create the digital risk management solutions, that will convince the CUO to get on board.
Omnichannel is not just for distribution
Technologies like NLP and AI are already commonplace in our homes in the form of Alexa and Siri, fused with web and email channel automation, steer carriers towards efficiencies in workforce management, improved issue resolution, tracking and monitoring of interaction data of their customer to enable analysis towards better products and services, overall improvement of the Customer Experience (CX).
Thanks to the industry getting better at understanding and building Machine Learning (ML) and Artificial Intelligence (AI) models, Intelligent Process Automation (IPA) could further advance the industry. By unlocking the carriers own data they can equip a bot with learning, evaluation and decision-making capabilities – therefore increased material impact in the form of higher business returns.
Adopt a digital ecosystem model
McKinsey predicts that by 2025, ecosystems will be responsible for 30% of global revenues. Carriers who use digital platforms, build ecosystems of customers, providers, and specialist service providers, and Insurtech startups are pivotal partners to traditional carriers who are looking towards a digital transformation.
The barrier to entry is the conception of a single solution for an individual problem or portion of the business process. The way to facilitate change is to adopt a smartly orchestrated ecosystem approach, where one delivers an enterprise platform solution as opposed to the conventional bolt-on solution.
The overarching trend is towards an external perspective rather than a conventional internal solution. Carriers are looking outside of their traditional value chain, and even outside of their industry towards solutions offered by other industries and the digital economy. Carriers are becoming reliant on ecosystem partners in 2020.