4 Ways AI Can Benefit the Insurance Industry
You may be thinking, AI in the insurance industry…really? Sure, historically this industry isn’t exactly known for its technological innovation, but as Bob Dylan once sang, the times they are a-changin’. As it stands, 21 percent of insurance organizations report they are currently preparing their workforce to adopt AI-based systems. AI has revolutionized the insurance industry, which was once known for being full of time-consuming tasks and manual inefficiencies. The automation revolution has proven beneficial at helping insurance companies grow, save money, reduce fraud, and increase efficiencies. However, leaning too heavily on technology and completely removing the human touch from insurance processes can be detrimental.
Digital transformation and the legacy of insurance
The insurance industry is mid-transition during an economic slowdown and investment drought. So what does the immediate future look like?
It’s fairly safe to say that, when it comes to digital transformation, the global insurance industry was a touch late to the party. Incumbents were process and paperwork-heavy. Worse still, customers were conditioned to accept the status quo, which involved waiting weeks for claims to be processed and payments to be made – because that’s just how the system had always been. Then COVID-19 came along and everything changed.
Insurtech has a ‘real role’ to play in seeing things from a customer perspective
The insurtech sector has a “real role” to play in helping the insurance industry see things from the point of view of the customer. This is according to former Lloyd’s of London chief executive Dame Inga Beale, who spoke during the first keynote on day one (1 March 2023) of Insurtech Insights Europe at the London Intercontinental hotel. Beale explained: “Insurtech is actually delivering better to customers which is great – I would still recommend putting the customer first, [because] hardly any insurance players put out customer positive products.”
Top Insurance Tech Startups in US
Americans like to be sure that they are protected from threats, potential disasters, and property loss. Many enroll in home, auto, and health, hoping to secure against potential risks and secure peace of mind. Enrollment barriers like convoluted eligibility requirements, complex coverage options, and fine print to decipher mean the insurance sector needs a significant overhaul. This is where the Insurtech startups have addressed the critical conditions. Insurance sector professionals now have the option of an online web development certificate that can boost their career growth.
Digital disruption in insurance: cutting through the noise
“Digital disruption in insurance: cutting through the noise” — helps paint that picture by drawing on McKinsey’s experience in the industry and that of some 30 executives whom we interviewed. Importantly, we spoke not just to incumbents but those who are helping to force change in the industry, including for example giant technology companies, companies that promote the use of data-collecting sensors in our homes and cars, and newcomers to insurance. All shared their insights on what is happening in insurance and why, and where success lies.
Does a top-up to your base health insurance plan benefit you?
A top-up health plan is a booster shot for your already existing basic health plan. It is an additional benefit for your health reimbursement policy which kicks in once you have exhausted the sum insured. However, experts advise that before you opt for a top-up plan, you need to ensure you have a comprehensive basic plan which will truly benefit you in a medical emergency.
Top healthcare insurance trends to watch out for in 2023
The last several years have been tough on the health insurance industry, with claims activity declining substantial over the course of the Covid-19 pandemic. Fortunately, insurers are getting smarter and more sophisticated, embracing new technology to optimise once cumbersome processes — a trend that will only continue in 2023. In this article, Omnia Health looks at the most notable healthcare trends to watch out for over the next 12 months.
How Covid has changed the life insurance marketplace
U.S. life insurers paid more than $90 billion to beneficiaries in 2020, a 15.4% increase in payments compared to 2019 — the largest year-over-year jump since the 1918 influenza epidemic, according to data from the American Council of Life Insurers. Payouts to beneficiaries increased by nearly 11% in 2021, jumping to over $100 billion, the organization’s latest report shows.The demand for life insurance policies also jumped as consumers rushed to protect loved ones.
Canadian Insurance Industry: 2022 InsurTech Trends
As we near the end of 2022, the Canadian insurance industry is in a positive place, setting itself up for long-term success in a remote-first and digital-forward environment. Globally, the insurance market has transformed into a digital business model. The digital insurance landscape had an estimated worth of $102.2B at the end of 2020, yet by 2026 it is projected to grow to $169.2B. Canadian insurance companies are benefiting from cloud-based platform technology. With an increased focus on personalized premiums and usage-based coverage, insurers are leveraging the internet, advanced analytics, and machine learning in many aspects of insurance.
Global Insurance Report 2023: Reimagining life insurance
Life insurers have responded to broader trends and industry shifts by reevaluating their traditional business models. The industry will face persistent challenges in the coming years, such as returns after cost of capital and geopolitical risks, as well as new challenges and uncertainty, such as high inflation and volatile macroeconomic environments. Nonetheless, there are pockets of optimism and opportunity for those who can identify, invest in, and capitalize on their distinctive capabilities to meet the expectations of their owners and stakeholders. Ultimately, a changing industry landscape can allow insurers to overcome current performance challenges by transforming both where and how they generate value.
Five takeaways from InsureTech Connect 2022
Automation is more challenging, however. Many companies said they can complete a wide spectrum of actions digitally—from product customization to efficient claims processing—but many of those services have yet to be built or offered with enough accuracy to fully replace human capabilities. Claims estimating in auto insurance has been the most prominent use case for replacing manual processes with automation and AI to improve customers’ experiences. Beyond auto claims, AI applications in areas such as universal workflow and liability detection are starting to emerge. As these new capabilities become more prolific, it’ll be important for companies to distinguish their competitive advantage and develop clear use cases to stand out.
Insurtech: The Future of the Insurance Industry
Insurtech, in its broad meaning, refers to technology-enabled innovations that help insurers offer user-friendly products streamlined for best customer experience. Insurtech may provide AI-driven solutions for insurers, but it is the human who must make the proper decisions. Thus, it is important for insurers to train their employees to understand how technology works and provide the answers thoroughly. Employees should be tech savvy and team up with insurtech to work more efficiently and make more accurate data-driven decisions.
Connecting The Insurance Ecosystem: An Imperative For Truly Digitized Insurance And Straight-Through Processing
Many insurers are already utilizing the cloud in claims and other external transactions. For example, when an insurer uses a third-party information provider solution to manage external aspects of claims, such as requesting an estimate of repair cost and making a damage inspection assignment, chances are that the connections between carrier, customer, adjuster, and the repairer are taking place in the cloud. To validate this, I spoke with Marc Fredman, chief strategy officer at CCC Intelligent Solutions. He confirmed that the cloud is hard at work for its insurance clients, adding that the CCC Cloud has facilitated more than 150 million cloud-based interactions on behalf of its customers.
Twenty Leading P&C Claims InsurTechs Making A Difference Today
Anyone who says InsurTech is an up-and-coming space hasn’t been paying close enough attention. The InsurTech movement, which began around 2010, is long past its infancy and is both maturing and evolving. This is especially true in the P&C claims space, where companies are gaining traction and having a significant impact on their customers. To gain greater insights into the claims space, SMA has been tracking over 175 P&C claims vendors in the North American market, including 75 InsurTechs (startups initiated after 2010) and over 100 incumbents. This year we set out to identify the Top 20 InsurTechs in Claims. Given the number of companies and the flurry of activity, this was not an easy task.
It Is Time for Insurers to Meet Needs of Tech Driven Businesses
To describe the past couple of years as tumultuous is something of an understatement. The global pandemic overlaid with hard market conditions in many insurance classes has kept many in our industry awake at night.
The pandemic undoubtedly helped accelerate already hardening markets – but it also led to accelerated growth in the innovative and creative sectors as we had to find new ways to stay connected, work differently and find entertainment and distraction from a simultaneously boring and disheartening period.
How insurtechs can accelerate the next wave of growth
Insurtechs are the driving force of this evolution, and investors are taking note. Venture capital (VC) investment has grown faster than the more mature private-equity or public-markets funding. In 2021 alone, the total amount of VC invested in insurtechs surpassed $11 billion, double the amount invested in 2020.3 In addition, private-equity investors are increasingly looking to invest sooner, further increasing the amount of capital flowing into the market.
Here’s the type of insurance you’ll need at each stage of life, experts say
What type of insurance should you have at different stages of your life? When asked, financial advisors pointed to disability and life insurance as most important kind of coverage at any stage, as they apply throughout our lives. In addition, advisors discussed often overlooked considerations for different points in your adult life. Here’s a look at some age-specific insurance advice, from your days at university to your golden years of retirement.
How Technology is Driving Big Data & the Insurance Industry
As Big Data gets bigger, we take a look at the challenges faced by the insurance industry and insurtechs collecting and turning information into insights. Every day, the world seems to move a little faster as technological advances connect businesses and people more efficiently. For the most part, it goes on unnoticed. We barely register the fact that our broadband connections are now so swift that instant video streaming is an expectation, not a luxury.
Why Advisors Need Insurance Strategies for Clients
Insurance may be the least understood and most underappreciated asset a client owns, even by financial advisors. It certainly is the subject of a long and ongoing debate in the financial industry. However, as the COVID-19 pandemic has continued globally, many more advisors are being asked questions about the value of life insurance as well as long-term care, health and other health-based coverages.
Insurance 2030—The impact of AI on the future of insurance
The industry is on the verge of a seismic, tech-driven shift. A focus on four areas can position carriers to embrace this change. With the new wave of deep learning techniques, such as convolutional neural networks, AI has the potential to live up to its promise of mimicking the perception, reasoning, learning, and problem solving of the human mind. In this evolution, insurance will shift from its current state of “detect and repair” to “predict and prevent,” transforming every aspect of the industry in the process.
2022 insurance industry outlook
Digital and talent transformation accelerating as insurers adapt for postpandemic growth. 2021 saw widespread vaccine deployment and easing of pandemic-related restrictions—important catalysts that helped rebuild confidence among people and businesses alike, while fueling economic recovery. But the battle with COVID-19 is far from over, and a level of uncertainty will likely persist— perhaps indefinitely. Might this undermine the insurance industry’s outlook heading into 2022?
Top 5 Trends in the Insurance Industry
The USD 5 Trillion global insurance market is in the midst of a game-changing course correction that will re-define ‘business as usual.’ A ‘digital first’ urgency is sweeping across the landscape, driven by a new generation of consumers, data, automation and Artificial Intelligence (AI).
Let’s take a look at the top trends that are shaping the insurance industry and how digital technologies are driving irreversible change.
A Family’s Health Insurance Cost More Than $22,000 in 2021, Survey Finds
The average cost of employer health coverage for a family plan passed $22,000 this year, according to a new survey, rising at a rate that indicates the Covid-19 pandemic had little impact on the total expense.
Yet the pandemic did lead to some changes for workplace health benefits, including enhanced access to telemedicine and mental-health services, according to the yearly poll of employers conducted by the nonprofit Kaiser Family Foundation.
Four challenges shaping the future of corporate insurance
The Covid-19 pandemic has given the insurance industry a chance to prove its worth, but has also demonstrated that the industry must become more efficient in order to meet the evolving needs of its clients.
The worst global pandemic in a century has presented all businesses, large and small, with unprecedented challenges. The Covid-19 pandemic pulled apart strong constructs that had been built over decades within just a few weeks. It revealed vulnerabilities and fragilities in sophisticated global supply chains.
Check your medical coverage before crossing the border: Pacific Blue Cross
Canadians should check their medical coverage in preparation for the land borders to the U.S. reopening in November.
Life and health insurers paid $100 billion to support Canadians through the pandemic, 2020 data shows
Canadians received over $97 billion in benefits from life and health insurance products in 2020, a period that included the first nine months of the COVID-19 pandemic economic slowdown.