Florian Mueller, a partner in Bain’s Financial Services practice, shares three factors insurance companies should consider when incorporating artificial intelligence into their businesses.

In this brand new series from Levvel, our industry experts discuss what the future of insurance looks like, how insurers are leveraging emerging technologies, and what steps established insurers can take now to prepare for the future.

* Watch the full video series here: https://www.levvel.io/resource-library/video-series-the-future-of-insurance

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* Watch ‘The State of the Industry’ series here: https://www.levvel.io/resource-library/vlog-series-state-of-the-insurance-industry

* Download the 2020 Insurance Technology Executive Report: https://bit.ly/insurance-tech-report-2020

* Download our Insurance Modernization Webinar, Part 1: https://www.levvel.io/resource-library/insurance-modernization-part-1-the-data-and-benchmarks-webinar

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Transcription:

David Antoline:

Anytime we talk about emerging tech, and this is true of the insurance industry as well, we like to focus first on really what are the real business drivers for adopting these technologies in the first place. It can be very easy for the market, for individual organizations to get caught up in the details of what a particular technology can or cannot do and how it might be applied. But at the end of the day, when you look at organizations that are truly doing a solid job of incorporating these technologies into their business, those are the ones that still remain focused on revenue generation, on improving operating margin, and on improving working capital. These are all the topics that remain tied to kind of the baseline purpose for going down those paths in the first place.

When we look at that across the industry, what we’re seeing primarily is a focus on data. There’s a lot of good reason for that. First and foremost, established insurers are sitting on mountains and mountains of data. In some cases you’re talking about decades of information that is not only valuable in the sense that it contains a lot of useful information, but it can also form the bedrock of a lot of application paths when you talk about emerging tech that’s out there.

For example, one of the things that we’re seeing is the idea of, can we collect more information? Can we collect more information about our customers and what they’re doing in relation to the product sets that we have available and some of the expected behavior? Can that be stored en masse? In other words, can we scale to the point where we actually have a handle on all of this information? Can it be moved within the organization quickly and retained for analysis? And then can we kick that back to end consumers, to internal users so that we can truly do something useful and pragmatic with it?

That process, whether it’s the application of machine learning and artificial intelligence, to creating predictive models that allow companies to sort of make sense of all the data that’s being collected, whether it’s using technologies that frankly allow data to be pulled down more quickly to not bog down the system in ways that historically, frankly, would’ve prevented these organizations from collecting what they needed to. All of these technology types are truly supporting this idea that at the end of the day, it’s really data that is most important. And the ability to move that data within the organization allow it to be consumed sometimes by external entities as well. And then to make good choices with what do we do with that information? How do we display it back? That really is at the forefront of where we’re seeing emerging tech applied in insurance.

If you look at organizations that are currently leveraging emerging tech in a way that’s truly working well, what you’ll notice is that they haven’t lost sight of really the combination of their business objectives and consumer demand. This can be really tricky because you’re really talking about a three-headed monster here. You’re talking about a push certainly from the market, certainly from technology groups to go further and further into some of these bleeding edge, cutting edge technologies that may or may not be at play currently within your organization.

You combine that with what the business certainly wants to be able to do…

Read the full transcription at: https://www.levvel.io/resource-library/video-series-the-future-of-insurance

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The insurance industry is undergoing fundamental transformation. Several disruptive factors have given rise to new players with disruptive business models. This short video by Strategy & (PwC’s strategy consulting team) looks at how insurance players should react to this major shift. The future of the insurance industry will be shaped by players who have the courage to commit to an identity based on how they create value for their customers and build the few differentiating capabilities that will allow them to deliver on that value better than anyone else.