Insurtechs often promise the ultimate competitive edge with AI, Robotic Process Automation, Chatbots , Blockchain, device specific insurance products- you name it you'll find it!
CIO from IDG graphically highlights the pitfalls - caveat emptor!
"Perhaps your company is like others that believe Artificial Intelligence (AI) can contribute to their business. But you’ll find that as soon as you start to think about AI, you start to think about data and data sources. That unleashes a substantial amount of work in building data warehouses. You may encounter a hurdle that many companies often find: data sources are less reliable and less precise than you had hoped. As a result, your company will need to build new data sources or improve the existing data sources. That effort will likely move your company to implement cloud technologies, along with the analytics software and data-management software that comes with cloud."
Peter Bendor-Samuel CIO from IDG
The lesson is to get those ducks in line and set priorities. Like all "solutions" AI is no panacea and there are many simpler digitally transforming technologies that will deliver significant benefits to customers, claimants, the insurance teams, contractors and supply chain partners.
Combinations of Digital Customer Engagement Platforms that:-
- Let insurers focus on customer rather than internal systems and existing workflows
- Reform analogue processes into Amazon style digital ones
- Orchestrate all participants from customer to supply chain
- Communicate effectively in real-time
- Provide real-time analytics for better decision making and execution
- Fight off digital disrupters
- Don't cost the earth and deliver 10 times financial returns and more.
Of course they won't so everything, and you may need multi-vendor partnerships. But they can
- Start pragmatically and fast- first digital claims in 3 months and within 12 months all perils
- Iterate fast- constantly improve
- Make significant digital transformation happen over the year- beat your competition
- Be the platform to make all unstructured data "AI Ready"
- Add AI, RPA from world-class solution providers as practical - probably a two-three year project- in cost-effective manner exploiting platform APIs
- & over 5 years plus test if blockchain is relevant to your business
- Make sure you solve compelling problems rather than add AI as a corporate ego strategy.
Insurers should plan to leverage AI but must know WHY and prioritise against the other many shorter term technology that must be deployed.
And again remember- it will take longer and cost more than you imagine
Commercial AI projects, on the other hand, provide end-to-end, ready-to-use solutions that organizations and individuals can purchase and immediately employ to solve problems. They’re easy to use and accessible to people and organizations that don’t have AI expertise. But often, they’re not open to modifications and are hidden behind the walled garden of the commercial entity that develops them. The developers usually don’t share details on how the AI technology works and consider it IP and business secrets. Some entities take ownership of the data you generate when you use their AI system, and the service comes at hefty costs (they do have to pay those expensive AI researchers, after all).