Future Of Insurance: Artificial Intelligence And Ecosystems

October 8, 2021

Digitization is currently experiencing an unprecedented boom. A fundamental digital transformation is about more than just providing technical infrastructure and supporting traditional processes. All possibilities should be used that the new technologies, such as artificial intelligence (AI), robotics and big data, have available. This results in entirely new strategies, business models, value chains and ecosystems.

Human-machine interaction and knowledge management: Processes in insurance companies often require a high level of customer interaction and specialist knowledge. The use of AI as a ChatBot, VoiceBot or voice assistant in the service centre or when processing customer concerns or complaints supports more efficient customer communication and optimized resources. Resources can be used for other activities.

AI algorithms and Robotic Process Automation (RPA): The synergetic combination of RPA technology and AI is apparent. Because RPA enables fast process processing with high process quality, AI systems perform tasks that allow interaction between humans and RPA without media discontinuity. This combination is, therefore, a central key for insurance companies. An RPA can forward an incoming damage report to the damaged area, and, in addition to the OCR engine, an AI can recognize the language and the context of the damage process. Another AI agent can also evaluate the attached images and validate the loss amount and the extracted loss event. The “RPA-RoBot” takes over the other claims process up to the completion of payment.

The development of sustainable AI, RPA and data strategies requires appropriate economic and technical expert know-how. For example, AI is about learning based on the decisions of the technical experts, the further development of the AI algorithms through structured and unstructured data, and the interaction between humans and machines.

Insurance companies should be aware of the objectives underlying the use of the respective technologies and data models to set up sustainable, successful strategies, set up roadmaps and provide reasonable budgets and resources for the projects.

Data and analysis methods are essential for implementing strategic goals of the transformation of the insurance industry and form the basis for the next level of digitization and data-driven insurance. A particular focus should be placed on the organization and operation to get the maximum potential from the respective technology and be in harmony with the corporate strategy. The organizational and procedural framework conditions are probably even more important here than the technical platform.

It has been shown that the organization and the people are decisive for the excellent development of an AI-supported and data-driven insurance company. The wisdom that the founder of modern management Peter Drucker once formulated applies here: “Corporate culture eats strategy for breakfast.” What applies to strategy in general also applies to technological strategy, initiatives and programs: only if the organizational framework is correct, only if the employees are taken along, only if they understand the meaning behind technology and are aware of the advantages of using it, then they will be ready to break new ground.

Also Read: Artificial Intelligence At Work For Health