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Artificial intelligence (AI), which enables machines to simulate and augment human intelligence, is coming of age at a time when insurance is facing widespread digital disruption. Although AI technologies are still evolving, they already have the capacity to support substantial, real-world business outcomes.
Across insurance, intelligent automation is replacing repetitive manual tasks; supplying workers with enhanced judgment; and improving interactions with customers. The technology is driving growth, profitability and sustainability for insurers that grasp the opportunity it presents.
AI allows insurers to redefine existing processes, create innovative products and transform customer experiences. But, to get the most out of AI, insurers must adopt a people strategy that adapts, upskills and augments the human workforce. They must also evolve how they work, from basic robotic process automation (RPA) to AI-powered intelligent decisions. And, they must unlock trapped value in new and existing datasets, by allowing AI to leverage data in creative ways across the entire value chain.
We believe the insurers that benefit most from AI will be those that are prepared to re-think their approach to their people, their processes and their data. With competition heating up and consumers’ expectations of their insurers growing, insurers must find new ways to improve operational efficiency, drive product innovation and transform customer and employee experiences.
This is especially important because insurance products are themselves changing, as carriers evolve from a pure compensation business model to one characterized by accident prevention and risk mitigation. This means that insurers must be able to monitor and proactively respond to vast amounts of data – from connected vehicles, for example – and often in real time. These changes call for a revolution in products and customer service, and insurers recognize that AI will play a defining role. In fact, 63 percent of insurers participating in Accenture’s Future Workforce Survey said that intelligent technologies will completely transform the industry.
Most insurers around the world report that they are investing more in AI technologies than they were two years ago, and that they plan to increase their investment in the future. Many insurtechs have also put AI at the heart of their strategies. Accenture’s global analysis of more than 450 insurtech deals revealed that the number relating to AI or intelligent automation roughly tripled between 2014 and 2016.
In the next blog in this series, we will look at how insurance organizations can best make use of AI’s extraordinary new capabilities. In the meantime, register below to learn more about AI’s transformative power.AI: How smarter technologies are transforming the insurance industry