Large insurance companies are not known by themselves. Many of the largest global insurance companies have been in more than a century, and business models that have been tested for time and operations have changed very little. They are like supernatural sclerosis. For them to change trends take a long time.
Technology has not been presented, not surprising, as a means of global insurance companies to become more innovative and efficient, and have spent billions of building technology systems over the past two decades aimed at doing so. Few realized any gains with great production.
“Most industries, such as cars and technology, have witnessed continuous productivity improvements over the past decade. Insurance has not been,” said Simon Kaisler, a partner at the Frankfurt office in McKinsey. “Digital technologies improved some things, but they were not changing to games for this industry.”
However, the game may be about to change, with artificial intelligence as an incentive. With hundreds of innovative Insurtech companies that have now focused on bringing artificial intelligence functions to commercial insurance operations, the industry appears to be preparing to turn to acceleration.
“We are entering a decisive new stage at the country level,” says Milani Kulp, CTO for the 99 -year -old multi -lines insurance company. “We transform from the technology -led experience into business -led. This development is an opportunity to re -imagine what our comprehensive works can look with the strength of artificial intelligence.”
At least in theory, artificial intelligence has a good deal to provide the insurance industry. Big language and gynecological models can analyze huge amounts of royal and external data to assess the risk of subscription quickly, accurately and accurately, and settles quickly. These tools can help automate bills and improve customer experience by responding quickly and intelligence to inquiries.
“Insurance is a contract -based industry with a lot of non -structured data and unorganized operations,” Kaysler notes. “Amnesty International works well in that environment.”
“We can see productivity improvements from 30 % to 40 %. Companies can serve from 30 % to 40 % of policies with the same number of people.
The challenge is to integrate new advanced tools such as AI and machine learning with insurance companies and operations without damaging customer and loyalty service. Depending on the insurance company and technical chimneys in place, this may be difficult.
“We have a large technical drug that must be integrated with ENSURTECH, and it should be able to expand our frame and sit in the framework of our control and security,” says Scott Kis, chief technology and operations official at Prudential Financial. “Whether it is a new or old technology, you should be smart on how to combine it with your business operations.”
Prudntial always monitors the market for new technical tools, including a third -party artificial intelligence solutions that can help its employees and agents make faster and better decisions. Despite the failure of the 2019 acquisition of Assuance IQ, the Insurtech company that corresponds to consumers with insurance policies, PRUDENTIAL continues partnership with external companies for technology solutions and distribution deals. Last year, a deal with the 123seguro digital insurance company was concluded to distribute insurance products in the Latin American markets that are not insured on the company’s platform.
For the case, potential cost savings are not what drives the prudential dependence of new technology.
“This is related to the art of possible customers and the service the way they want to provide,” he says. “With the expansion of these solutions, many will achieve cost savings, but the key is to keep pace with customer needs and serve them better.”
Aaron Brasad, US Director of DELOTTE, who focuses on insurance, says, while merging new technologies into Legacy Systems is a challenge to all insurance companies.
“Application programming facades have become more powerful now, allowing the integration of new technologies into old nuclei more easily,” he noticed. “It makes the easiest partnership with others and achieve the goals of the return on investment.”
Brasad is attributed to INSURTECH companies with the axis of their business models and the assistance of the current insurance companies to address friction points in their operations, whether in the subscription process, the demand management, bills, or customer participation.
He says, “The momentum picks up.” “Insurtech companies play a big role in reshaping the industry and has started a very positive impact on the insurance market.”
Pioneers and partners
Brasad divides INSURTECH into two Dutin: Those who focus on their growth in the insurance market focus, and who have focused on improving the operations and operations of current transport companies. On the first front, Insurtech companies barely made a ripples in the Global CHK global insurance market of $ 8, which represents about 1 % of global written insurance premiums. There, however, a lot of shocks.
Zhong AN, an online insurance company, was launched in 2013 and was published in 2017, in 2017, on millions of customers in China. The company is now cooperating with SOPO Japan Nipponkoa to expand in Japan, providing experience in information technology while benefiting from the presence of SOPO in the market. New York -based Lemonade Inc had 2.4 million customers at the end of the first quarter and exceeded one billion dollars in power installments. Allianz giant Allianz has strategically investing in the company in 2017.
Globally, many companies have achieved remarkable success. Alan, a French institution that sells health insurance for corporate customers and arranges health care services for its employees, to evaluate more than 4 billion dollars based on its last tour of private financing. It now covers 745,000 customers and expanded in Belgium, Spain and recently, Canada.
“The world -class market is enormous; only in geography, there is currently, there are 120 million believers, which provides a great opportunity to continue growth at at least 40 % growth rates in the future,” says Alan Cfo Mihaela Albu. “We have proven that we can expand a scale across different markets in Europe and now we will go globally.” The company targeted profitability by the end of next year.
“It was artificial intelligence in our fibers from the beginning,” says Albou. “One hundred percent of our employees use it through operations per week,” and helps the company to settle 98 % of customer claims within 24 hours; 2 % is marked as fraudulent.
Palo Alto, the next California -based insurance, which focuses on the commercial insurance of the small business market, grows rapidly. She has more than 600,000 commercial customers and is preparing to increase growth after acquisition by Munich in March for $ 2.6 billion.
“The merger gives us long -term stability, the level of technical management capabilities, risk management and infrastructure of a strong insurance network,” says Chris Rhodes, the next chief insurance employee, who was previously working for Farmers Insurance and Metlife. “Our aspirations for the next stage of growth have amplified.”
NEXT acquisition can also help implement artificial intelligence tools through their operations, noting how to increase cooperation between innovative Insurtech companies and current dominant insurance companies in the deeper shift in the industry. If the current insurance companies are able to expand the scope of the digital technologies for Insurtech to their business models, they can follow the benefits of companies and customers.
“There are some great things that happen in the insurance industry now,” says James Rotolo, SAS SAS, chief financial services director. “Some innovation occurs directly within insurance companies, and in other cases, they cooperate with some of the latest Insurtech service providers.”
As a godfather of data analysis programs, SAS was established, nearly 50 years ago, 47 are one of the 50 largest international insurance companies as customers. Ruotolo helps insurance companies identify technology solutions to work problems and integrate them into old systems. Like all analysts in the industry, it is closely monitoring how Munich Re/Next Merger is running.
“I think we may see a rise in acquisitions,” he noticed. “With these technologies gain a foothold and begins to show real value in the market, some insurance companies will be keen to capture them.”
Insurance companies look already.
