How insurers can free up stuck value in their business and increase returns with AI
In my previous post, I presented an important problem that insurers are facing today: many invest considerable amounts in innovative technology but are still struggling to unlock their probable potential and release firm value into their business.
In this post, I discuss how insurers can use advanced technologies such as artificial intelligence (AI) and intelligent automation to reduce costs, improve business, and improve the efficiency of future organizations.
Run new revenue with AI
In our research on "The new, new normal exponential growth", 56 percent of managers agreed that the AI expansion will drive new growth and revenue opportunities through to accelerate new products and services. Fifty-eight percent said that AI-enabled revenue growth comes from increased customer satisfaction and commitment; while nearly 50 percent believe it will spur a change in their business models.
In the 2017 Vision for Insurance survey, 76 percent of managers said that AI would significantly or completely change the industry over the next three years, while 72 percent thought it would have a similar impact on their organization. But fewer than half of the interviewed executives said their company conducted extensive AI programs over their companies.
What do the companies that successfully use AI programs for the entire company have in common? 43 percent use intelligent automation
] To really achieve AI-led growth, organizations need to:
- Move beyond automation for only efficiency and cost reduction to focus on true growth,
- Redefine ecosystem boundaries Redefine ecosystem boundaries within which you and your customers are located;
- Create [A] fast AI proof of concept providing truly quantified business value, creating ability to scale these evidence, and starting to establish
- AI governance .
Building Long-Term Capabilities with AI
Accenture Strategy was examined 1,100 executives worldwide to measure AI adoption, technology use in business, and its role in driving value.
Financial managers know that AI should be a critical part of its competitive strategy. Two-thirds of our respondents identified it as a top strategic priority, and 85 percent said it would create new product categories, business models, and markets. But most companies are stopped in pilot phase or in early stage AI adoption. The problem is that many organizations implement the technology in silos and discrete projects – an approach that will not cause them to unleash their real potential.
The organizations that create a driving force and build long-term ability with AI are
Creating value in insurance with intelligent solutions
The following chart shows how insurers in the United States create value using intelligent solutions:
] Source:  Reimagining insurance processes with intelligent solutions
There are many uses for intelligent solutions in insurance. Accenture has identified over 100 life and P&C value chains, including:
|Requirements Management||Intelligent solutions can automatically automate vehicle data, detect potential fraud and analyze fraudulent business trends. An Accenture life and health client expects to reduce their management time for disease and disability from 100 days to 5 seconds using a combination of optical character recognition, text analysis and machine learning.|
|Underwriting||These solutions can help with extraction|
|Sales||AI can alert agents to prospects that are ready to buy, which helps drive higher conversion rates.|
|Product and prices  Intelligent data analysis can include a wide range of risk factors for a more precise price risk.|
|Customer Experience||Process automation enables completely new levels of personalization and convenience in customer service. Co-op insurance customers in the UK can get an automated insurance estimate after answering four questions from a chatbot on Facebook Messenger.|
In my next post, I explore the value of cloud and DevOps for insurers. Before that, contact me here to read more, or read the following research material. I think you find them useful: