Yeah, you have read that right! Artificial Intelligence is getting into insurance and underwriting sector too. There is strong anticipation that a lot of insurers are under the influence of the high-paced digital transformation. This wave is prevalent because many insurers are betting on technological innovations. With the investments getting large-scale and transformational in the front-office competencies, insurers are wanting to get into underwriting. The widespread consensus is that underwriting is here to change and modernise the core functions and infrastructure for increasing customer value.
So, are Underwriters Going to be the Heroes of the Future?
Conventionally, the insurance underwriting is considered as a science and an art, both. But it is surpassing art, science and entering into technology as well. This trend is going to stay ahead, which is predicted, and it then will move from being just as a back-office trend to a front-office one.
According to a report of Aite Group, the top 10 financial services trends of 2018 showed the extent of unstructured data under PC (Property and Casualty) underwriting and claims in the global insurance industry. So, the derivation of this was that people want faster decisions of underwriting and claims so that it compels carriers to convert unstructured data.
You can check the 2019’s trends here which show what’s there with AI, data, and digital consideration worldwide.
Countless Third-Party Sources
The propagation and indulgence of all the third-party data sources lessen the reliance of insurers on the internal data collected. They can get all the insights via the data mines called social media. Their every consumer is using internet-connected devices like smartphones, laptops, and other such devices with various apps and websites; ensure you of ‘anonymity’ via their ‘privacy guidelines’ collecting only ‘some information’ has lead every business to know about your details, likes, and interests. An irony, I know! But, this data serves as a rich source for insurance companies as well, showing your behavioural patterns.
Now, in this world, we can also access the previously much forbidden public-sector data with the help of advanced technologies, and this serves as a tremendous potential reserve for the third-party data scrapers. The increasing access to this external data is letting insurance companies understand their potential and current customers much better, they can make new plans as they recognise the risks better than before.
The underwriters are getting streams of information from conventional and non-conventional sources, and therefore, they can now access more in-depth histories, active actions, and an entire scenario of that applicant.
To enable the development of faster solutions, they equip the underwriters with all the tools for accessing and analysing the information from the third-party sources. As per the behavioural analysis, they can dynamically underwrite applications and renew the policies. This facility creates a customer-friendly process with fewer frictions of tedious work.
