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As the insurance industry continues to navigate the pace of change, complexity and uncertainty in our world, Consumers continue to give feedback, expecting companies to be more responsive to their needs. This year’s underwriting predictions provide guidance on how carriers can respond swiftly.
1. Growth of cognitive technologies will help insurers capture opportunities from more discrete market segments
Technological advancements in AI and data analytics are helping insurers further refine market segments. As these more discrete segments grow, so too does the opportunity for insurers to address them with new products and services offered through a wide range of digital distribution channels. such a channel embedded insurance—Insuring customer visits to non-insurance companies—For example, offering life insurance during the mortgage application process.
New Cognitive Insurance Platform Providing a life carrier to these new products and distribution channels provide a way to capture that opportunity, and as these platforms evolve, they have tremendous potential for an underwriting function. Already, these insurance platforms are automating evidence gathering and providing recommendations based on constantly updated data analytics engines. With this level of automation and intelligence, underwriting decisions can be made in real time. Cases requiring further investigation are automatically sent to a human underwriter. With most of the evidence already collected, the human underwriter is free to focus on further analysis, leading to more efficient decision making – a clear competitive advantage in rapidly expanding digital distribution channels. We believe innovation in this area will continue to grow over the next year. In fact, our report fuel the future of insurance Describes on page 11 how a life insurer in China is improving operational efficiency and customer experience by leveraging AI and a smart algorithm.
2. Customer Experience Will Continue to Drive Underwriting Innovation
In the last year underwriting predictionsIn this article, I discussed how customer experience will determine who will win the digital competition for new business. We expect this trend to continue, but with increasing awareness of consumer expectations and how insurers can respond more quickly to their changing needs. For example, our Accenture Insurance Consumer Studies Research Recognized that millennials and younger consumers are not the only group embracing the digital experience. The 55 and older group is becoming more comfortable with digital interactions. And if insurers are to attract and retain customers, a digital customer experience is table stakes. Underwriting plays an important role in supporting the digital customer experience, especially with the proliferation of customer experience technologies available through ecosystem partners.
As our industry moves from indemnity to protection products, digital technologies will be essential to deliver differentiated experiences that leverage these platforms and ecosystems to capture opportunities from new product innovations . We believe product and underwriting innovation will provide a significant source of revenue over the next several years. However, this will require the expanded use of AI, automation, data analytics and cloud run profitably revenue,
As insurers modernize their legacy core systems, freeing up siled data, they are able to automate their underwriting workflows to deliver a faster digital buying experience while connecting to additional data sources that give them the tools they need to manage risk. Help to apply the proper level. Not only does this shorten underwriting timelines and reduce costs, it also improves the customer (and underwriter) experience. Similarly, it supports the enhanced experiences consumers are looking for – intuitive, proactive and personalized.
According to a Gartner® report (Richard Natale, Kimberly Harris-Ferrante, August 2022), “By 2027, digitally engineered underwriting will reach mainstream adoption in the life insurance industry, resulting in significantly increased revenue and underwriting profitability.” and the customer experience has improved. ,
3. Human + Machine operating model will help address the underwriting skills shortage
Digital technologies such as AI and automation are not replacing underwriting jobs. On the contrary, these technologies will become even more essential as insurers continue to face a shortage of skilled labor. Besides, they will Need a talent and investment strategy that targets no-/low-code capabilities alongside digital skills and access to data analytics Flexible workforce to optimize underwriting functions,
For example, with the increasing use of third-party data, AI and automation Provide an efficient way to ingest data and make it useful to underwriters. This frees up underwriters to do what they do best—assess and price risk,Make effective decisions, while driving on time. What’s stopping them is the administrative work it takes to hand 40 percent of their timeaccording to our Survey of 500 US Life Insurance Underwriters,
The first step is to improve the efficiency of back-end underwriting operations. interoperability The key is to simplify all customer-facing functions, including product delivery, marketing, sales, service and commerce, in addition to using an integrated technology stack across platforms and ecosystems. The cognitive platforms mentioned above can help here as well. As insurers improve their digital capabilities to quickly meet the ever-changing needs of consumers with more discrete insurance products and distribution channels, underwriting capacity will need to keep pace. This human + machine combination can facilitate a better experience for underwriters and potential policyholders.
This is good news for the insurance value chain and further strengthens my optimism about the abilities of our industry and insurers to meet the challenges and opportunities ahead. We are ready to help. let’s talk About getting the most out of your technology and human ingenuity.
Fuel the future of insurance: Technology modernisations, such as AI and cloud-fuelled data analytics, help insurers deliver profitable growth through both increasing revenue and cutting costs.
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