Dilemma for insurers- planning for the role and benefits of AI whilst still today struggling to deliver stage one of digital insurance transformation.
Until insurers have the vision, strategy, talent and resources to exploit data and AI they will fail. They must adopt the advice in this McKinsey Report.
The priority is to team with the right technology partners that free up insurers to deliver customer delight whilst collapsing costs this year and next. Yiu don't have more time as first movers and fast followers will cream off the lion's share of premiums and profits.
See the critical success metrics you should be aiming for now so you do not fall behind. That then gives you the opportunity to plan for and add world class AI to the digital platform of choice once you know why and what. The how will then fall into place.
Of course it's more than just technology.
"In addition to being able to understand and implement AI technologies, carriers also need to develop strategic responses to coming macro-level changes. As many lines shift toward a “predict and prevent” methodology, carriers will need to rethink their customer engagement and branding, product design, and core earnings. Auto accidents will be reduced through autonomous vehicle usage, in-home flooding will be prevented by IoT devices, buildings will be reprinted after a natural disaster, and lives will be saved and extended by improved healthcare." McKinsey & Company
You need technology partners that can deliver the urgent digital transformation over the next 12-24 months, the emerging need for AI over 24-48 months and still cater for longer term adoption of, say, blockchain where the use case is compelling
As AI becomes more deeply integrated in the industry, carriers must position themselves to respond to the changing business landscape. Insurance executives must understand the factors that will contribute to this change and how AI will reshape claims, distribution, and underwriting and pricing. With this understanding, they can start to build the skills and talent, embrace the emerging technologies, and create the culture and perspective needed to be successful players in the insurance industry of the future.