The Insurtech boom is well known: insurance companies are integrating digital technologies into their traditional processes and everyday workflows in order to reduce manual efforts, time and costs. Process automation and new digital experience impact all sectors but the insurance is perhaps the most affected sector of all.
The World Insurtech Report 2018, released last October from Capgemini, states that the Insurtech sector saw “investment increase at a compound annual growth rate of 36.5 percent between 2014 and 2017.” In its Global Insurance trends analysis 2018, EY said that “Insurtech continues to be a hot area within the overall Fintech investment space having seen deal values rise 32% YoY and 45% CAGR since 2012.” According to Technavio, who published a new research report on the global Insurtech market, “the global insurtech market will grow by almost USD 15.63 billion during 2019-2023,” at a CAGR of more than 41%.
Therefore, it seems that insurtech attracts attention and a lot of investments, and in the future it will also continue to play a key role in using new technologies to provide a strategic advantage in the insurance sector.
Driving value for insurance: Insurtech and AI
Transform the value chain, improve the customer experience, enable human capabilities, increase efficiencies, create new products and redefine business models: new technologies can impact the insurance industry in several ways. Among the different emerging technologies impacting insurance companies, Artificial Intelligence implementation is effective because it can be applied to the most data-intensive processes, providing gains and extracting insight from textual information. AI can read documents in the same way people do, recognizing the useful information they contain automatically. This reduces the time spent on insurance tasks from hours, down to seconds. Using AI, insurance companies can :
- Accelerate claims management
- Accelerate underwriting
- Reduce leakage
(To learn more about cognitive automation and AI applied to insurance, download the White Paper “Three unique ways to improve the economics of insurance with artificial intelligence”)
The example of AXA XL: Cogito AI is a great partner for insurtech
“AXA XL is using artificial intelligence software to help reduce its risk consultants’ workload; the latest example of an enterprise adopting software that can help it do more with less.” This is how AXA XL was defined in a recent interview in CIO.com with Tim Heinze, its director of strategic operations for the company’s North American property unit. AXA XL leverages AI to enhance its property risk engineering capabilities using Expert System’s Cogito Platform.
The core technology used in this project is Expert System’s Cogito Knowledge Graph, which embeds millions of concepts and their lexical forms, properties and relationships, to help disambiguate the meaning of words and expressions contained in text. The software leverages machine learning algorithms to enrich its knowledge automatically from text.
Expert System’s Cogito AI technology, capturing all the useful data from the reports, provides several benefits to AXA XL, such as improved accuracy, time savings and a digital edge over competitors.