There is no doubt that we live in a time when insurance companies have been called upon to change their business offerings, infrastructure and operations. Successful transformation leads to new revenue opportunities, stronger customer relationships and lasting brand relevance. However, this need to develop cannot be addressed through superficial changes. Leading insurers are transforming their core offerings to completely reconsider their role in the insurance landscape. As the nominations and winners of the Efma-Accenture Innovation in Insurance Core Insurance Transformation award show, leading insurance companies begin their core transformation at the top and apply it to every point of contact in the business.
Nine pioneer nominees
The nine nominees in the category of nuclear insurance transformation lead nuclear insurance transformation in various innovations throughout its value chain. The nominations were:
- AXA for A.Iconic Claims
- Discovery for AI Quote
- RBC for their conversational AI platform, powered by Personal Insights for Life Insurance Application
- General for their fund transaction through blockchain innovation [1
- China Life Insurance for an intelligent sales force valuation system
- Multiasistencia for MACARENA, an innovative AI voicemail that provides 100% automated first notification of loss in home insurance claims  Humania for its pioneering income insurance for accident and disability
- Mapfre for Verbatims, a cognitive behavioral model that integrates feedback from customers
As evidenced by the nominees above, AI is a leading technology in the core insurance transformation. In fact, each innovation used technology in new, structured ways to create a lasting impact on their business. Let's take a closer look at the winners and what their innovations say about how to lead the Nuclear Insurance Transformation 2021.
Discovery is changing the way brokers and clients interact with them through the introduction of their AI quote service. Users can upload a PDF or images of competitors' insurance and investment documents by phone or computer and receive a corresponding Discovery quote in seconds. The whole trip can be completed in under one minute. Brokers can take the quote to their clients and where a client has completed the direct journey, they will be called by a salesperson to discuss the details of the quote and close the sale.
Romek Sadowski, Discovery Life's Chief Marketing Officer, says, “Ultimately, AI-powered optical character recognition (OCR) technology has been able to equip us with a seamless journey for customers, advisors, and employees in the business as a whole. For customers, the benefits include getting a comparable quote in less than a minute and an improved understanding of Discovery products relative to the market. For advisors, important benefits are more accurate and consistent competitor comparisons, as well as a reduction in sales and citation of frictions. By automating the process of extracting data from policy documents and then converting them into comparable Discovery Life benefits, our advisors can spend less time on manual labor and more time helping our clients.
AI Quote has also created opportunities for Discovery Life to incorporate digital tools into many of our existing processes and create a single, seamless, digital journey for both advisors and clients. Additional innovations, such as Virtual Underwriting, which enables clients to undergo underwriting wherever they choose, have been developed and refined to make this goal of a seamless digital journey a reality. [
This is a major innovation in the South African insurance and investment landscape, which is highly developed and innovative, and is characterized by frequent product updates and improvements. Although the products are fine-tuned to meet customer needs, it is difficult for brokers to keep track of different products on the market and how they compare from one competitor to another. Customers also do not have the opportunity to understand how their financial products compare exactly with competitors.
“The South African insurance industry is a complex environment with a wide range of sophisticated products. Financial advisors face many competitors, each with multiple products and options, resulting in countless different quote combinations. By automating the comparison process, AI Quote simplifies the new business experience for both advisors and customers, increases the conversion rate and improves stakeholder satisfaction. AI Quote ensures that customers who have existing policies with our competitors receive comparable Discovery benefits and gives advisors confidence that they give customers the best possible advice when comparing policies.
By removing sales frictions and automatically performing comparisons, Discovery & # 39 ;s AI Quote discovers aims to improve the company & # 39 ;s exposure to potential customers, attract brokers to sell Discovery products, improve exchangers' accuracy, and market Discovery & # 39 ;s brand as a market leader innovator. With an efficient client- and broker-centered platform, Discovery has taken quotes to the next level.
However, the potential for AI has only begun to be untapped. Romek concludes: “The insurance landscape is developing and we have seen an influx of micro-insurance suppliers, direct-to-customer insurance companies and niche players in the market. When it comes to life insurance, customers are faced with an incredibly large number of alternatives – and that number is increasing. Within such complexity, manual processing of data to generate benefit comparisons is simply inefficient. An important advantage of AI is that it can complement or replace manual processes and enables a much more streamlined user experience.
Outside of the new business process, AI has shown tremendous success in other areas such as customer service, warranty and requirements. . Chatbots are now often used by insurance companies around the world to help customers and answer their questions. Car insurance has changed fundamentally through advances in telematics. Big data is more easily accessible and can be used with the help of AI to make faster and more accurate pricing and subordination decisions.
Generali carried out a profound transformation of how they deal with their counterparts and guardians through the use of blockchain technology.
Generali France currently processes 250,000 orders for funds (to cover unit-linked insurance) per year through classic depository schemes. The goal is to create a direct link with asset managers for trading in funds without using the depots' costly transfer agent.
With this change in mind, Generali France invested in a startup called Iznes and developed a fundraising platform for blockchain technology. With this as a basis, Generali has begun to link its IT and operations to the innovative platform.
The innovation can serve all middle and back offices for investment departments and asset management companies. It crashes transaction costs and creates a direct link between the buying side and the selling side. The total cost of Generali Unit-linked orders is expected to decrease by half, provided that 50% of counterparties join the platform.
Led by their customers' needs and vision to change how people feel about insurance, FWD Group Data developed a "Smart Insurance Framework" that looks at the business in an "AI-everywhere" method. The platform has transformed the entire insurance journey for both their customers and employees with the help of advanced technology and AI power.
To create a simpler and smoother insurance experience for customers, FWD created a modern data architecture framework that improves operational efficiency internally and convenience externally. Group Office Data Platform (GODP) streamlines and integrates all data into a single platform that is smart, secure and scalable. This platform enables business users to leverage data, insights and run analytics across all of our markets to support a range of FWD data initiatives. The smart use of data enables FWD to develop and predict customer responses more accurately, develop a better understanding of customer needs and behavior, and in turn serve them better.
As the nominees and winners show, the insurance industry embraces technology to anticipate, analyze and streamline customer, broker and employee experiences. We would like to hear how you are changing your core insurance business. Submit your core insurance innovation to the Efma-Accenture Innovation in Insurance Awards for 2022.
See the full announcement of Efma-Accenture Innovation in Insurance winners here.
Get inspired. See the library for insurance innovation 2021 here.
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