As the insurance industry continues to navigate the pace of change, complexity and uncertainty in our world, Consumers continue to respond and hope that businesses will respond more to their needs. This year’s underwriting forecasts provide guidance on how your career can respond faster.
1. Evolving cognitive technology helps insurers to acquire opportunities from more individual market segments
Technological advances in AI and data analytics can help insurers improve their market segments further. As these more individual segments grow, insurers also have the opportunity to address them with new products and services offered through the broader digital distribution channels. One such channel is Embedded insurance– Insurance placement on non-insurance clients’ journeys – For example, provide life insurance while applying for a mortgage.
new Cognitive Insurance Platform It supports these new products and distribution channels to provide life carriers with ways to capture the opportunity, and as these platforms evolve, it has great potential for underwriting capabilities. Already, these insurance platforms automate evidence collection and recommendations based on a continuous, updated data analytics engine. This level of automation and intelligence allows underwriting decisions to be made in real time. These cases that require further scrutiny are automatically called to human underwriters. With much of the already completed evidence already complete, human underwriters are free to focus on further analysis, leading to more efficient decision-making and a clear competitive advantage in rapidly moving digital distribution channels. We believe innovation in this sector will continue to evolve over the next year. In fact, our report Promoting the future of insurance Page 11 explains how Chinese life insurance companies are improving operational efficiency and customer experience by leveraging AI and smart algorithms.
2. Customer Experience continues to drive underwriting innovation
last year Underwriting forecastI discussed how the customer experience will determine who will win the digital competition for a new business. We expect this trend to continue, but there is growing awareness of consumer expectations and how insurers can respond more quickly to changing needs. For example, we Accenture Insurance Consumer Research We identified sub-millennial consumers as not the only cohort to embrace digital experiences. Over 55 cohorts are becoming more comfortable with digital interaction. Additionally, when insurers attract and retain customers, the digital customer experience is a table stakes. Underwriting plays a pivotal role in supporting digital customer experiences, particularly with the surge in customer experience technologies available through ecosystem partners.
As our industry moves from compensation to protective products, digital technology is essential to leveraging these platforms and ecosystems to deliver a differentiated experience that captures opportunities from new product innovation. We believe product and underwriting innovations will provide a major revenue stream in the coming years. However, it requires a wider use of AI, automation, data analytics and cloud. Promote profitable revenue.
As insurers modernize their legacy core systems and free up siloed data, they can automate their underwriting workflows to speed up the digital purchasing experience and connect to additional data sources that help them apply the right level of risk management. This not only reduces underwriting time frames and reduces costs, but also improves the experience for customers (and underwriters). Similarly, it supports the sophisticated experiences consumers are looking for.
According to the Gartner® Report (Richard Natale, Kimberly Harris Ferrante, August 2022), “By 2027, we had reached mainstream adoption in the life insurance industry through digital engineering underwriting, significantly increasing revenue, undertaking profitability and improving customer experience.”
3. Human + Machine Operation Models Help to reduce the lack of underwriting skills
Digital technologies such as AI and automation are not replacing underwriting jobs. On the contrary, these technologies will become even more needed as insurance companies face a continuous lack of skilled labor. Plus, they’ll do that You need personnel and investment strategies to use along with digital skills in data analysis and the use of no/low code features. Flexible workforce to optimize underwriting functions.
For example, due to the increasing use of third-party data, AI and automation It provides efficient ways to ingest data and help underwriters. This will free the underwriter to do his best – valuation and price risk–While driving effective decisions in a timely manner. What stops them is the management task that occurs. 40% of timeaccording to us Survey of 500 US life insurance underwriters.
The first step is to improve the efficiency of backend underwriting operations. Interoperability In addition to using an integrated technology stack across the platform and ecosystem, it is key to simplifying all customer-facing features, including product distribution, marketing, sales, services, commerce, and more. The above cognitive platforms are useful here too. Underwriting capabilities need to stay pace as insurers improve their digital capabilities and quickly address consumers’ ever-changing needs through more individualized insurance products and distribution channels. This human + machine combination can promote a better experience for underwriters and potential policyholders.
This is good news for the insurance value chain and further strengthens my optimism about the industry and insurance companies’ ability to meet future challenges and opportunities. We are ready to help. Let’s talk About making the most of your technology and human ingenuity.
Facilitate the future of insurance: Technology modernizations such as AI and cloud fuel data analytics can help insurers achieve profitable growth, both with revenue growth and cost-reducing.
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