A tale of two reports: -
- EY Insurance Outlook: what should insurers do to prepare for tomorrow?
- LexisNexis "Future of Claims Study"
EY would have you invest in IoT, Blockchain, Big Data Analytics amongst seven key technologies. Lexis Nexis takes a more measured approach combining customer and operational priorities with the time needed to deploy technologies effectively.
Take advanced analytics and AI.
LexisNexis's glimpse into the future describes an "automation continuum".
- Today; limited use
- 3 Years; "Semi-artificial" intelligence
- 5 Years; Full AI for certain processes
- 10 Years; more sophisticated and broadly applicable AI
Insurers should beware consultants and vendors promises quick returns from technologies that by nature are hyped. AI is at least rooted in use cases but will require a thoughtful and strategy based approach over the timescales LexisNexis describe. Otherwise you will suffer unplanned consequences;
Blockchain will take longer and cost more so insurers must know why it will make a big difference before committing time and money.
Whether you agree with me or not you will be constrained by the challenge of legacy systems and the constant call to adopt new platforms that multiply the number of systems requiring support and adding to IT capital and operating costs.
Ensure any new platform you chose will : -
- Not require you making current core systems redundant
- Architecturally allow integration of "best-of-breed" relevant technologies like big data analytics and AI
- Support the timing phases described by LexisNexis.
Finally where is the human touch? The "2019 Future of Claims Study" sub-title is Balancing Claims Automation with Empathy. That is more in the nature of empathy with the customer. Important yes but there is also empathy with colleagues. There are both customer and adjuster & colleague journeys that must be optimised in parallel.
Any insurer must have the culture to innovate and organise that is included in vision, strategy and tactical plans. "you can’t have a digital transformation with an analogue culture” or as is often attributed to Peter Drucker "Culture eats strategy for breakfast".
Because its value proposition is so high, digital transformation for insurers is essential. Digital transformation delivers tangible and intangible value across the insurance value chain, with specific benefits in six key areas: Cost reduction Customer experience enhancement Speed to market Sales productivity Underwriting efficiency Claims efficiency