Insurance

Industry Overview

The US Property & Casualty insurance market is expected to register a CAGR of 6% during the period 2019-2028, according to Mordor Intelligence. In recent hard markets and a very turbulent couple of years, the insurance industry has been forced to navigate the changing nature of risks, raise the standard on product flexibility, adapt new distribution models, modernise customer engagement, and improve operational efficiency. Companies are focused on finding optimal approaches to quickly improve combined ratios, utilise emerging data and technologies, and raise the bar on employee and customer experience. It is evident that embedded AI, intelligent automation, deep analytics across external and internal data, and new investment strategies are at the forefront of priorities for these companies.

The industry has historically operated on incomplete information, and inefficient home-office processes to analyse and accept submitted risks on their books. This ensures adverse operational impact, such as spending 70% of resource time on low-value tasks, heavy dependence on manual processes, and high premium leakage and loss ratios.

Challenges and Opportunity

One of the biggest and most common challenges across the insurance industry includes streamlining the experience to new-age expectations, using AI and data to contextually serve customers and out-select competition, and building technology agility. Commercial and Specialty insurance companies deal with data in gigantic volumes. Filtering out and recording the relevant details for properties and businesses is no easy feat.

At the front end, it is common to still find lengthy submission processing times and minimal exposure insights, causing the underwriters to spend unnecessary time on non-value added tasks. Moreover, fragmented information across external and internal sources causes further delays in risk evaluation and inconsistencies in decisioning due to gaps in information, underwriter biases or scenario-relevant hidden risks. There is a need to deliver faster decisions, reduce the loss ratio, and enrich the data sets used to evaluate the risk being written.

Furthermore, new risks and market changes require product flexibility and speed to bind to overcome the potential loss of ‘in appetite’ business. Underwriting is required to create a profitable and sustainable portfolio, and emerging technologies need to co-exist with legacy environments to support growth.

The Intellect Promise

We have invested in the utilisation of Artificial Intelligence (AI) augmented innovative solutions for new business and underwriting and underwriting lifecycle, with a simplistic user experience. Given the legacy environments at many companies, focused initiatives around cloud, APIs, and data management are at an all-time high.