So far, I’ve talked about the specifics of Claims, Underwriting and Pricing, and Product Development—but I haven’t really talked about the back office administration functions.
If you’ve been with me so far, you won’t be surprised to hear that I think AI, robotics, and other automated systems will transform those functions as well, and empty them of people.
The Insurer of the Future will reorganize its back office using automation—but it will do so “smartly.” By smartly, I mean that it will figure out how and where to automate to gain the greatest commercial benefit.
Some processes will need to be transformed by using stronger, more automated, core systems.
Some processes, or sub-processes, will gain most from the use of AI/cognitive capabilities: chatbots, vocalbots, machine learning, recommendation engines, etc. And any gaps might best be filled using robotic process automation (RPA) or even non-technology tools such as Lean.
There will be instances where it makes sense to use more than one of these techniques—perhaps capturing short-term efficiency gains through interim RPA of a sub-process, while a more comprehensive longer-term solution is being developed.
The source of success for the Insurer of the Future, however, will be figuring out (smartly) exactly what to apply where, and in what order, to create the highest return on investment.
Please see Part 9—Human Capital for further predictions.