Realizing new value ininsurance with AI:A snapshot

Insurance customer trends are shifting at a rapid pace.

More revenue is earned by brands that have a superiorcustomer experience than their competitors.

Customers have shown interest in using fast andconvenient automated advice for buying insurance.

Customers stay with brands that offerhigh-quality customer service.

Artificial Intelligence (AI) holds the promise of transforming the insurancesector into a modern, customer-oriented industry. It harnesses the immensepotential of the constant stream of incoming insurance data to transform theholistic insurance experience.

Here is a big picture of the key challenges with manual processes incritical operations in insurance and how AI can impact them.

42%

46%

5.7x

From manual to magical

Manual data entry andextraction are inefficientand highly prone tohuman error.

90% automation of quotecreation process throughRPA bots and OCRcapabilities brings downTAT by 80% and FTEby 50%.

Manual processing oflow-quality data leadsto human errors andoperational inefficiencies.

Manual data extractionfrom unstructuredformats and filing intoan AMS* is mundaneand prone to errors.

Manual reinsurancecapacity evaluation andcalculation of reinsurancevalue is inaccurate,time- consuming anderror-prone.

Automated data extraction,claim settlement, fraudprediction bring downclaims cycle TAT by 66%.

Automated documentclassification andinformation extractionimproves productivityby 80%.

95% automation of thereinsurance capacitycheck process leads to60% reduction in TAT

Challenges

AI impact**

Quoteautomation

Claimsprocessing

Documentindexing Reinsurance

This has a positive domino effect in the insurance value chain.

* Agency Management System

Based on Imaginea’s experience of working with three of the top ten globalinsurers, several mid-sized carriers and multiple insurtech companies

**

AutomatedAI-driven operations

Improvedprocessefficiency

Easedout userjourney

Better customerexperience

Higherretention rate

Robustbusiness

growth

Strongerinvestmentcapabilities

The AI virtuouscircle in

insurance

A positive outlookMore and more insurers are positive about the tech’s transformationalcapabilities and jumping on the AI bandwagon.

74%Insurance executives say AI willrevolutionize the way they gaininformation from and interactwith customers.

90%Insurance executives say theyhave a long-term plan for techinnovation in place.

63%Insurance executives sayintelligent tech will totallytransform the industry.

A rich future aheadThe promise and impact of AI in insurance is also routing big fundsinto the industry. The otherwise laggard industry is getting a freshlease of life - in terms of global worth - thanks to AI.

$301mn

Total value of funds pumpedin by investors into insurtechfirms in Q1 2020. $20bn

Total value of global AI-underwrittenpremiums by 2024.

$1.1T

Total potential annualvalue if AI is fully appliedto the insurance industry.

https://www.pwc.com/us/en/moneytree-report/assets/pwc-moneytree-2020-q1.pdfhttps://www.accenture.com/us-en/insights/financial-services/digital-transformation-remaking-insurancehttps://www.accenture.com/us-en/insight-insurance-distribution-marketing-consumer-study#https://www.slideshare.net/AccentureInsurance/realizing-the-full-value-of-ai-in-insurance-infographichttps://www.slideshare.net/AccentureInsurance/insurance-technology-vision-2017-iinfographichttps://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/the-executives-ai-playbook?page=industries/insurance/https://www.insurancejournal.com/news/international/2019/08/19/536716.htm

References

Customer Policy

ClaimHistory

HistoricalData

Third-party Data

SmartPolicy

Workflow

FasterClaims

Delivery

AutomatedCustomer

Interactions

SmartUnderwriting

Quotes

EXPERIENCEDATA

To know more about therise of AI in insurance,download our report.