Insurance has always been a touchy subject. By its very nature, it is innately associated with negative outcomes: customers are compensated if they lose something, like a tangible asset or a loved one.
Today, digital transformation is here to turn the traditional insurance model on its head. Rather than relying on negative outcomes, we can use the intelligent enterprise to calculate risk and prevent it from happening. Intelligent insurers can effectively use their data assets to achieve their desired outcomes faster – and with less risk.
What is an intelligent enterprise?
Over a 50-year period, we have watched technology advance from mainframe and PCs, through the advent of dial-up internet, then cloud, mobile, and Big Data at the turn of the century. What we have in the 2010s is intelligent enterprise – using machine learning, artificial intelligence, blockchain, and the Internet of Things (IoT) to make predictions and optimize business decisions. So how about putting this theory into practice – how can we apply this to insurance?
Insurance and financial services
With an increasingly competitive marketplace, insurers need to embrace the intelligent enterprise to create better business opportunities. New technologies allow us to:
- Mitigate risk – To stay competitive, we need to move away from focusing solely on the financial implications of a potential outcome. Rather than looking at loss, artificial intelligence and machine learning draw conclusions from historical data. This helps them calculate physical risks to our customers, which insurers can present and advise on prevention.
- Offer rapid solutions – We need to be responsive to the ever-increasing customer demand by creating new business processes. We can do this with cloud-based solutions: these are flexible, adaptable, and can handle big changes quickly.
- Manage vast amounts of data – Data is no longer limited to simple customer information. Using connected networks offered by the IoT, we have more data to power decision-making and deliver a better solution for our customers.
- Focus on higher value tasks – Previously, insurers focused too much time and energy on repetitive tasks. Automation allows these to be carried out digitally, giving us time to focus on higher value tasks such as acquiring new customers or upselling to existing ones. Our aim is to increase business value by broadening our product offerings and focusing on new revenue streams.
- Streamline processes – Using real-time data to monitor boardroom decision-making, we can better identify our challenges as insurers. We can also speed up the claims process by using sensors to detect issues, rather than relying on customers to call us. Finally, using spatial data processing, we can analyze weather patterns to predict natural disasters and protect our customers.
Intelligent enterprise puts customers back in the picture, thereby making insurers more competitive. From protecting our client base to saving costs with automation, we can streamline our processes, make better decisions, and overall add value to the business.