Unlocking New Frontiers in Claims, Data and Technology Accelerate  February 1st 2023

Unlocking New Frontiers in Claims

One way to think about the application of data science and machine learning is that it’s a tool to aid the conversion of information (data) into action. In this context, machine learning is applied to enable better and more efficient decisions, as well as identifying previously hidden risks and opportunities. Essentially, data science helps an insurer to perform significantly better, whatever their goals.

The application of advanced analytics is already well ingrained in the world of insurance pricing and underwriting. However, it is only more recently that it has begun to exert more influence in claims operations.

In the overall insurance value chain, substantial resources and effort have been applied to better understand a customer’s risk and purchasing behaviors to help charge the most appropriate price. Fresh benefits still to be mined in the pricing and underwriting space are relatively scarce. In contrast, huge untapped value is waiting to be realized by insurers reducing their claims spending or better understanding and optimizing their claims processes.

Pardeep Bassi, Global Proposition Leader, Willis Towers Watson

Are Personal Lines Insurers Accelerating Transformational Tech Plans Post-Pandemic? - Strategy Meets Action

The COVID-19 pandemic was a catalyst for technological change across the insurance industry, especially within personal lines. Customers demanded virtual and digital interactions, so insurers responded by accelerating the development and investments in transformational technologies. Although it may not be accurate to classify our current era as post-pandemic, insurers have adjusted their plans to match the needs of society today.

In SMA’s newest report, "Transformational Technologies in P&C Personal Lines: Insurers' Progress in 2022 and Future Predictions," annual research findings are revealed that track insurers' plans and progress in transformational technologies. Thirteen transformational technologies have been identified that are revolutionizing personal lines and are explored in the report, which offers insights into insurers' progression with each based on impact and activity.

Mark Breading, Tom Benton, Heather Turner - SMA

How to Know If You Need Telematics

Telematics can provide strategic value and returns on many levels in the insurance business. Here are six questions to ask to see if you can benefit.

Insurance telematics has been explored by insurers for the past couple of decades, and insurers have approached it with varying degrees of curiosity, commitment and disillusionment. The same has recently occurred with insurtech.

There have been more telematics failures than successes, but these successes clearly show what is achievable if the technology is used well. When a market is in its “disillusionment phase,” all the failures are used as excuses for a lack of innovation.

But the best practices have already demonstrated what can be achieved. As Dr Jan Myszkowski, the author of 50 Shades of Leadership, said during the last peer discussion of the IoT Insurance Observatory, “The world is full of customers and money; if you don’t grow… the problem is you!”

Matteo Carbone, IoT Observatory

Ranks of Quiet Quitters Climb as Layoffs Mount

Ranks of Quiet Quitters Climb as Layoffs Mount

Close to one in five workers has fully checked out on the job, and employees’ sense that they’re being treated fairly has plummeted, according to two new surveys that paint a dismal picture of the American workplace.

The share of US employees engaged at work as measured by Gallup declined for the second straight year to just 32%, with 18% actively disengaged, making for the worst ratio between the two measures since 2013. Fewer than half of workers now trust their organization to give them a fair shake, down to 46% from 54% last year, according to a separate survey from the Society for Human Resource Management. The discontent, while widespread, was most acute among younger workers, women and those managing multiple teams across remote and on-site schedules.

Why the current challenging insurance market 'is going to favor the bold'

The year is 2023, but it seems like the same problems are plaguing the insurance industry once more.

The COVID-19 pandemic’s economic impacts remain sore spots for many businesses, natural disasters seem to be getting worse each year (in fact, Guy Carpenter recently announced that global natural catastrophe losses in 2022 could hit $112 billion), and inflation continues to put further pressure on the markets. While major insurance companies might be able to weather the effect of these issues, the same cannot be said of smaller insurance underwriting operations.

How can underwriters navigate this difficult period?

Once more, Insurance Business turned to Jeff Rake (pictured), CEO of insurtech Accelerant, for his insights on the current state of P&C insurance, and how his company plans to support underwriters in this challenging time.

Property/Casualty Insurers Aren’t Slowing Down in 2023

Insurance has traditionally been viewed as resilient to recession and economic uncertainty. Yet, besides the tough economic conditions, the insurance industry is facing an unprecedented number of business challenges: increasing claims severity rates due to supply chain issues and rising inflation, climate risk and ever more frequent natural catastrophes, increased regulatory oversight, and greater customer expectations.

Normally, in a difficult environment, insurers would be tightening their belts, yet in 2023, Aite-Novarica Group anticipates many insurers taking a different approach by increasing investment in IT and implementing new technologies to improve operational efficiencies, increase revenue, and enhance customer experience.

Martina Conlon, Head of P&C Insurance Practice, Aite-Novarica Group

A Class-Action Wave Is Coming for ESG Claims

Lawyers are bracing for an increase in ESG-related cases as corporate disclosure requirements stiffen around the world.

A survey by the law firm Norton Rose Fulbright found that 28% of more than 430 general counsel and in-house litigation leaders said their so-called ESG dispute exposure increased in 2022, and 24% expect it to deepen over the next 12 months. The key reasons are the absence of clear environmental, social and governance metrics and requirements, and the heightened regulatory scrutiny on the importance of ESG.

AI tools such as ChatGPT to drive digital transformation of insurance

COVU, an AI-enabled digital platform for insurance agencies, has released an executive forecast on the industry shift toward using generative AI tools to help insurance agencies streamline operation, customer service and cross-selling opportunities.

The insurance platform was founded by insurance industry veterans Ali Safavi and Tasos Chatzimichailidis with the goal of helping independent insurance agents and carriers better manage risk and make smarter insurance decisions through AI-driven policy recommendations, business services and sales support.

The InsurTech’s team of insurance, finance and technology innovators believe AI tools such as Chat GPT, built by OpenAI, will be a factor in the digital transformation of the insurance industry in the year ahead.