Global law firm DLA Piper, in partnership with The Fintech Times and The Fintech Power 50, recently hosted a fascinating evening event at its head office in London addressing how established players and disrupters in the insurance industry can navigate through the complexities of artificial intelligence (AI).

Regulatory hurdles and compliance intricacies emerged as focal points, with speakers exploring the complex landscape of legal frameworks governing AI including the EU AI Act and the UK regulator’s approach to AI regulation, highlighting the importance of understanding forthcoming regulatory changes and their implications.

Contractual considerations were scrutinised, illuminating the path towards leveraging AI while mitigating associated risks. Real-world insurtech use cases were also shared, showcasing the transformative potential of AI when deployed effectively. While ethical considerations prompted introspection on aligning technological advancements with corporate values.

Let’s take a look back at the evening’s highlights.

Opportunities with AI

Pierre Berger, a corporate, financial services and insurance partner in the firm’s Belgian offices, kicked off the evening with an introduction outlining how AI has the potential to profoundly reshape society, altering how we work and interact.

Despite concerns about job displacement, Berger sees AI as a source of innovation and prosperity.

He reassured the audience that regulatory hurdles and compliance issues need not hinder the opportunities presented by AI, citing examples of tech leaders viewing regulations as beneficial for business growth.

Berger also underscored the multifaceted roles AI can play, from serving as a personal assistant to transforming industries like insurance.

“My partners and I are convinced that there are many opportunities and, in our view, data governance, compliance and regulations do not necessarily negatively impact on those opportunities. Some leaders of big tech companies I speak with even stated AI regulations will help them growing their business in the field of AI,” said Berger.

AI and the law

Next up came James Clark, a data protection, privacy, and cyber security lawyer at DLA Piper’s Leeds office, who outlined the current and forthcoming regulatory landscape for AI.

He highlighted the diverse legal frameworks indirectly impacting AI development, including data protection, employment, and intellectual property laws. Clark also shed light on forthcoming regulations like the EU AI Act and the UK’s decentralised approach to AI regulation.

“If you are the provider of an AI system, you have to be able to demonstrate that you’ve put a range of controls in place when you are building an AI system in terms of data quality, data governance, technical security around the AI system, and then ultimately complete a conformity assessment,” he explained.

AI in insurance

Alexander Hamels, a financial services and insurance lawyer at DLA Piper in Brussels, then took the audience on a journey through the disruptive potential of AI in insurance.

He painted a vivid picture of AI’s transformative power, from shaking up product design to streamlining claims management. Despite the industry’s cautious approach, Hamels highlighted real-world examples of AI’s impact, such as a 30 per cent optimisation in claims management processes.

However, he didn’t shy away from addressing the risks, including biases, discrimination and customer satisfaction challenges. Hamels stressed the importance of responsible AI implementation, highlighting the need for robust risk assessments, governance measures and data protection safeguards.

Hamels commented: “The successful implementation of AI tools can be a competitive advantage for insurance undertakings. There are use cases across the entire value chain of the business. However, there are important risks involved, which are on the radar of regulators and legislators. It is the responsibility of the industry to proactively develop solutions to address these risks to avoid regulatory intervention.”

Contractual considerations for AI

DLA Piper legal director Nichola Donovan offered insights into the critical assessment of AI service commitments, cautioning against presuming inherent reliability and highlighting the necessity for comprehensive evaluation before implementation.

She explained the importance of scrutinising liability, intellectual property ownership, and potential third-party infringement risks. Donovan also discussed the evolving nature of liability in AI contracts, stressing the need for a balanced approach to risk and reward.

Finally, she outlined key considerations regarding restrictions on usage, service levels, and oversight, particularly in comparison to traditional human-led service delivery models.

“AI can be difficult to explain and understand and that can make oversight and control more challenging,” she said. “So perhaps think about putting the onus on the supplier to have those quality assured systems and controls in place, and also potentially a proactive obligation to notify you in the event that things go wrong so you get that critical early warning notice and you have the opportunity to take steps on your own side to mitigate those potential losses.”

Insurance use cases

Up next was Chris Halliday, director at Willis Towers Watson (WTW) – a primary and reinsurance broker, multi-discipline consultant, risk adviser and specialist technology provider – who talked about use cases in insurance for AI and data science, drawing from his extensive experience as an actuary.

He outlined the evolution of AI over the years, especially the emergence of generative AI and its transformative potential in areas like code development and customer retention strategies.

One area he underscored the significant impact of AI was on enhancing operational efficiency and improving customer service, particularly in the context of claims management.

Despite the opportunities presented by AI, Halliday also outlined various challenges, including organisational friction, integration with legacy systems, and governance and ethical considerations.

He advocated for a collaborative approach and a robust target operating model to effectively harness the power of AI in insurance operations.

AI and insurtech

Sharing her insights and experiences in on-demand insurance for SMEs and freelancers, Janthana Kaenprakhamroy, CEO at Tapoly, offered a refreshing perspective on the practical applications of AI in the insurance industry.

With a blend of personal anecdotes and industry knowledge, she touched on the value creation potential of AI, particularly in the development of new products tailored to specific needs and the enhancement of customer experiences through 24-hour service capabilities and personalised insurance offerings.

Kaenprakhamroy delved into real-life use cases, showcasing how AI can streamline operations, improve risk assessment and fraud detection, and redefine claim processing. She also highlighted the significance of aligning AI strategies with business goals and fostering a supportive team culture, saying:

“Culture, I would say, is one of the biggest challenges for any AI implementation. And from my personal experience of developing a successful AI strategy, the number one priority for me is to work out your goals goal and what the end result you want with your AI project.”

AI in insurance: panel discussion

Concluding the event Jonathan Clarke, partner at DLA Piper in Birmingham, moderated a lively panel discussion, touching on the key themes that drove the evening’s discussions. He was joined by Kaenprakhamroy, Halliday and George Mortimer, a partner at DLA Piper in London as they discussed the intricate relationship between the AI and insurance, focusing on ethical implications and sustainability considerations.

The panel discussion was particularly engaging, with many insurer and insurtech clients in the room adding to the liveliness of the session. Challenging questions from the floor further enriched the dialogue,with topics ranging from concerns over the insurance market’s dual focus on AI and environmental, social, and governance (ESG), and the impact on lawyers when the EU AI Act comes into force, in particular the need for additional training.

Transparency emerged as a key theme, with speakers discussing the importance of transparent machine learning algorithms and the regulatory focus on outcomes rather than understanding every parameter. Additionally, the discussion touched on the significant focus of the insurance market on AI and the emerging tension between AI adoption and sustainability due to energy consumption.

Evening finale

To end the evening with closing remarks, Anthony Day, partner at DLA Piper, acknowledged the existential threats posed by AI, such as fake news and deep fakes, but remained enthusiastic about the opportunities AI presents. He touched on AI training and stressed the importance of staying informed about regulatory developments.

“I’m actually hugely infused about AI and the opportunities in this space,” he concluded.

Additional reading materials on AI can be found here: Patentability of AI – A Legal Perspective on Emotional Perception / DLA Piper, Common ground between the US AI Executive Order and the EU AI Act

This March, The Fintech Times has turned Its focus towards insurtech, shedding light on the innovative advancements and sustainable initiatives within the insurance sector.

Today, we explore the role of artificial intelligence in insurance and the delicate balance between leveraging technology and preserving human expertise.

Is the insurance sector risking over-reliance on artificial intelligence, and what’s the balance between innovation and human expertise?

In part two of our spotlight on AI, let’s hear more from our community… (part one here).

Allianz Partners

Simon Powell, head of travel claims at Allianz Partners, one of the UK’s largest travel insurers, addresses the integration of AI alongside experienced colleagues to streamline travel claims processing.

“We very much see AI and people working alongside each other: we are already using AI alongside experienced colleagues to speed travel claims for clients. We use AI to pick up some routine administration and to straight through process straightforward claims frees up staff to focus on more complex and involved claims – for example medical repatriations – that need their skilled and experienced management.

“Allianz Partners has got two AI bots working on travel claims. The first of these, Edith, can handle claims submitted through our own portal which often white labelled in partners’ apps. For simple claims, such as flight delays, which meet our criteria Edith will check the claim against then policy rules and can move directly to settlement, giving us genuine straight through processing capability.

“Florence, the second bot picks up some of the routine administration that can slow down claims – for example it automatically chases customers to provide documents that they’ve promised to get to us. The quicker we get them, the faster we can settle the claim.

“Right now Allianz is using AI to help improve its claims customer service. However, we do see future roles for the technology across the entire customer journey, which includes being able to deliver personalisation at scale.”

Publicis Sapient

Daniel Cole, senior managing director, financial services and insurance at digital transformation company Publicis Sapient, highlights the significant opportunities AI presents for the insurance industry.

“AI presents much opportunity for the insurance industry from enabling greater robustness of customer engagement, giving customer operations ”super-powers’ in the background while unlocking efficiency at the same time. However, the risks for AI are real and have been well reported on a cross-industry basis.

“We need to remember that the adoption pace by the large insurers is still slow, steady and narrow – typically around pricing analytics and machine learning orientated operations. Many insurers are still grappling with their data – the very cornerstone of getting AI to work well.

“But the sooner that insurers start establishing robust guard rails, governance and processes, the sooner they can start realising the true value of AI.”

Mphasis

The insurance sector has currently reached the crossroads of advancing with the power of AI and rethinking the concerns about over-reliance, according to Vijay Mahendrakar, head of insurance business solution, Europe at information technology services and consulting company Mphasis.

“AI has been a game changer and excelled in analysing vast data sets, enabling accurate risk assessments, fraud detection, and streamlined claims processing. For instance, it has the potential to offer personalised coverage and pricing tailored to customers’ needs. However, there are concerns about potential biases in algorithms, diverse and dynamic nature of threats and lack of transparency in decision-making.

“Hence striking the right balance between automation and human expertise is crucial to enhance efficiency without compromising risks due to automated decisions. Human intervention and expertise are crucial in areas like complex risk analysis, ethical considerations, and building trust with customers. AI is augmenting human capabilities rather than replacing them.

“So, insurers are looking at a collaborative approach in dealing with AI now. This is done through transparency at every stage and preventing some tasks from being fully automated by keeping humans in the loop as it is important until the technology fully matures.”

Protegrity

“The potential of AI and the ambitions of AI advocates continues to grow, the insurance sector finds itself at an important juncture,” says Alasdair Anderson, vice president at data protection company Protegrity.

“Yes, artificial intelligence brings dazzling efficiency and precision to our fingertips, but it also whispers the question of over-reliance. My perspective? It’s crucial we don’t lose sight of the human element that’s always been the backbone of insurance.

“AI is a tool, not a silver bullet. It offers a way to analyse data at a speed and scale never seen unearthing insights that might otherwise remain buried. However, the essence of insurance goes beyond algorithms and data points; it’s about understanding life’s complexities and offering a safety net that’s as much about empathy as it is about economics and data.

“The real magic happens when we blend AI’s analytical prowess with the nuanced judgement and emotional intelligence that only humans can provide. This balance ensures that while we embrace the innovations AI brings to our sector, we also preserve the irreplaceable human connection that builds trust and loyalty with our clients which also goes hand in hand with keeping their data secure.

“Embracing AI shouldn’t mean sidelining the human touch. Instead, it’s about forging a future where technology reinforces our human strengths, ensuring the insurance industry remains both innovative and inherently human. However, in doing this it is critically important that customer data remains secure and only relevant data is shared across AI platforms.”

SS&C Blue Prism

Despite the uptake of AI within insurance firms, no insurers are relying on AI to make decisions, suggests Rob Paisley, industry director for financial services and insurance at SS&C Blue Prism, a specialist in digitising operations across financial services, insurance, health and pharma, and banking.

“AI is only useful when it works in tandem with human intelligence. In the insurance industry, AI helps  underwriters identify risks and threat vectors, helping them to work more efficiently. AI’s revolutionary ability to help humans identify hidden patterns, signals and opportunities is an industry game changer.

“It has the potential to create new niche insurance businesses with unique coverage parameters. However, these models need constant retraining to remain accurate. Humans need to identify obvious errors and inconsistencies that help improve model performance. That feedback loop is also essential to maintain model health and prevent bias.

“By delegating certain tasks to intelligent automation, workers can optimise their time, prioritising business expansion. A human-centric approach to governance, including mandatory awareness, transparency, and policy enforcement, is essential to strike the right balance.

“Achieving a balance between AI and human expertise will be pivotal for insurance enterprises to fully capitalise on the advantages of AI while navigating its limitations. Only a joint effort can propel insurance companies into the future. Without this, companies risk over-using AI and not drawing on the creative benefits of having human intervention alongside AI-led innovations.

“To summarise the true impact of AI on the insurance industry, I would reframe it as augmented intelligence. These tools are designed to improve human performance rather than replace it.”

SAS UK & Ireland

Over recent years, we’ve seen more insurers turn to AI to provide the best, personalised experience for their customers, while also helping facilitate innovative risk solutions, outlines Andrew Pollard, insurance specialist at analytics specialist SAS UK & Ireland.

“While there aren’t any tangible indications to suggest the insurance industry is relying too much on AI, like everything, there must be a balance to ensure the right safeguards are in place for AI to work effectively and complement human efforts.

“For one, it’s vital that AI models are transparent so that decision-making can easily be explained to regulators or customers. New research has emphasised this priority for insurers, with many now turning to their AI software vendors for guidance.

“To avoid the consequences of over-reliance on new technologies, insurers will also want to make sure they account for common pitfalls like bias. If AI or machine learning is applied to data that is inaccurate, it has the potential to magnify the errors and cause unintended bias in results – which is why human intervention is still vital at various points of AI implementation and beyond.

“The right AI modelling can help reduce bias, alongside significantly speeding up the process through automation. Ultimately, it’s all about finding a happy equilibrium between AI innovation and human expertise – with AI providing the leg work and human oversight ensuring the technology is utilised to the best of its ability.”

One Inc

Ian Drysdale, CEO of One Inc, a digital payments network for the US insurance industry, acknowledges the significant advantages AI offers to insurers in enhancing operations and customer support, but highlights concerns around biases and privacy risks,

“The insurance industry, traditionally slow to adopt new technologies, faces a shifting landscape with the emergence of innovative startups and established giants venturing into the sector. This prompts traditional insurers to catch up or risk being left behind.

“The rise of artificial intelligence offers significant advantages to insurers, including smoother operations, better risk evaluation, and improved customer support. Predictive and prescriptive analytics are particularly valuable, enhancing underwriting capabilities and managing loss ratios effectively. These technologies can predict the likelihood of water loss and recommend where to place sensors. In the event of a car accident, they not only estimate the loss but also can outline necessary repairs and recommend an auto shop.

“However, social concerns and risks hinder widespread adoption, with some fearing that dependence on AI algorithms may exacerbate biases, compromise privacy, and erode human judgment.

“Despite these challenges, finding a balance between AI and human expertise is achievable. While AI and automation streamline processes and enhance efficiency, human judgment offers intuition, empathy, and nuanced understanding.

“Integrating AI and human expertise improves accuracy in underwriting and claims processing while maintaining customer trust. This symbiotic relationship enables insurers to adapt to market changes while providing personalized service. Embracing innovation while honoring human insight is pivotal for the insurance sector’s success in the digital era.”

This March, The Fintech Times has turned ts focus towards insurtech, shedding light on the innovative advancements and sustainable initiatives within the insurance sector.

Today, we explore the role of artificial intelligence in insurance and the delicate balance between leveraging technology and preserving human expertise.

Is the insurance sector risking over-reliance on artificial intelligence, and what’s the balance between innovation and human expertise?

In part one of our spotlight on AI, let’s hear what our community says… (part two here).

LexisNexis Risk Solutions

Artificial intelligence is already becoming a key area of competition, having a direct impact on the speed of deployment, efficiency, improved customer experience, targeted pricing and customisation,” says John Beal, senior vice president, data science, LexisNexis Risk Solutions. “However, it is not a panacea for all our data problems.”

He continues: “For insurance providers, machine learning cannot effectively manage, cleanse, analyse and deploy data without input from a highly experienced data scientist.

“Algorithms are incredibly helpful and intelligent but without manual intervention by a data scientist, algorithms are not able to accurately structure data or use them for the correct business acumen, especially within Insurance while keeping in mind the relevant regulatory requirements as they model to a loss curve. Understanding the problems, how a solution will work, and how it should be implemented still requires human expertise.

“With human involvement playing such a fundamental role in data and analytics for insurance, ‘applied intelligence’ or ‘machine augmented intelligence’ are better descriptions rather than full artificial intelligence. This is the application of automation within the insurance workflow, alongside the essential human intelligence and business acumen, rather than a fully machine run operational process.

“LexisNexis Risk Solutions has been undertaking data science in this way for more than four decades. While today AI is increasingly helping within the insurance analytics process it is best utilised by a team of expert data scientists who understand the fundamentals of insurance.”

INSTANDA

Kevin Gaut, chief technology officer at no-code insurtech platform INSTANDA, suggests that while artificial intelligence is increasingly ingrained in activities, the idea of replacing humans with machines, especially in fields like insurance, would be too hasty.

‘’AI has seamlessly integrated into our lives, yet the notion of replacing humans with machines, especially in insurance, remains premature. AI, exemplified by Siri or Alexa, operates on predefined rules, executing tasks deterministically.

“In contrast, generative AI, like ChatGPT, uses learning techniques, continuously refining decision-making processes based on available data. These approaches embody different capabilities and characteristics. While ChatGPT has significantly advanced in the last 18 months, the extensive groundwork in machine learning preceding these advancements must be acknowledged.

“Although fears of job displacement are legitimate – Goldman Sachs predicts 300 million jobs worldwide could be affected – the technology is still in its infancy. In the short to medium term, AI’s role should be viewed as a support system, enhancing user capabilities rather than supplanting them. Comparable to a colleague offering assistance, AI provides tools that users can leverage as needed.

“Take underwriting. By streamlining the underwriting process, underwriters can do what they do best – harnessing more data, but quicker and more efficiently. By using a rich vein of data to make better, more informed decisions, AI does not remove human expertise, but saves time and frees underwriters to be even more productive.

“Essentially, AI doesn’t replace human expertise but rather enhances efficiency, allowing individuals to focus on skill development. Looking forward, AI’s trajectory promises continued evolution, presenting opportunities for collaboration and long-term skill refinement.’’

Financial Technology Research Centre (FTRC)

Fintech consultancy, the Financial Technology Research Centre is hosting an AI in Financial Advice event this summer. Its founder Ian McKenna says there’s no doubt that AI can offer substantial benefits to the insurance sector.

“While much of the sector is only just becoming acquainted with the potential benefits of AI, human expertise is crucial on several levels. AI providers themselves need to have a very clear and specific use case for the insurance sector to ensure the most effective and valuable outcomes for both the sector and the end consumers.

“Second, insurance providers need to conduct extensive due diligence to ensure that there is a complete understanding of the outcomes generated by using an AI service. This is particularly fundamental following the introduction of Consumer Duty.

“For example, there are cases where it would be unwise to use generative AI due to the risks of hallucinations while predictive AI may be more reliable and auditable. All these nuances therefore need to be assessed on a case-by-case basis with human expertise.”

Venteur

It would be a mistake to suggest the insurance sector is over-reliant on artificial intelligence, according to Stacy Edgar, licensed insurance broker and the CEO and founder of health startup Venteur.

“We’re in the early stages of the technology, and while there’s excitement around the tech, the insurance industry is the most risk-averse industry out there. There are valid concerns around data privacy and potential data biases, but these can be overcome if you approach implementation thoughtful.

“In particular, transparency is key. At Venteur, we have publicly share how we trained our AI, where we got the data, and how data is used. This not only helps to meet regulation concerns, but also helps build trust in our AI technology with our clients.”

Carpe Data

Geoff Andrews, chief operating officer at Carpe Data, which provides next generation predictive scoring and data products to life insurance companies, says the insurance sector is not currently in danger of over-relying on artificial intelligence, as most insurers are still figuring out how and in what areas to apply it.

“Insurance has always had to adapt to changing market conditions and human behaviour, but rarely has it adapted fast. Today the best use cases for advanced generative AI models in insurance are focused on efficiency and accuracy.

“With the looming talent gap presented by an aging workforce, insurers must use AI to maximise the efficiency of time-consuming manual tasks, reduce overall costs (time and resources), and empower human expertise rather than replace it.

“Some examples: AI can automate rating and quoting processes in underwriting so insurers can be more intentional about refining their risk appetite and selection while providing a superior customer experience. And, AI can simplify passthrough toll gates for smaller claims, as well as monitor open claims at scale to flag potentially fraudulent activity.

“Done right, AI will enhance ‘human-in-the-loop’ processes but never entirely replace them. People should be the brain and AI the engine, automating repetitive tasks and organising data-driven insights so people can make more confident decisions with better context while exhibiting the knowledge and compassion integral to insurance.”

Homeprotect

“If anyone’s worried that AI is coming to take our jobs, I think it’s worth looking back at the history of technology in the industry,” says Dan Huddart, chief technology officer at specialist home insurer, Homeprotect. “Just like all technology evolutions, advances in AI will fundamentally change the jobs that we do to meet what customers need and expect from us.

“Insurance changed forever when computers landed on desks. It changed again when the internet linked them all together. Each evolution in statistical modelling has driven a bow wave through the way we calculate prices, analyse risks and design products. Large language models give us new tools and ways to work with text and speech at speeds and granularity that were unthinkable until recently. Advances in image and video technology will drive similar shifts in how we analyse and interact with real world risks and claims.

“Human expertise has been critical through every technology change. For example, the role of an underwriter has the same purpose after each tech revolution, but the tools and productivity per person look very different.

“What AI takes away in single-person productivity, it replaces with new opportunities and new roles. We now gather more data, in new ways, than ever before. Customer expectations go up over time. Risks evolve, and new products need to meet new customer demands. Human expertise is essential in adapting to these new opportunities and we rely on technology including all forms of AI to give us the productivity boost to tackle them.”

Sprout.AI

Roi Amir is the CEO of insurtech Sprout.ai, where he is driving Sprout.ai’s mission to work in partnership with insurance companies, building AI and data-led products. He suggests that although it may sometimes feel AI hype is everywhere, it is only pockets of the insurance industry that are adopting AI.

“Incumbents, for example, have still been slow to catch on to the opportunity that technology presents. Key hotspots include marketing, fraud detection, customer service, and claims management and automation. These processes have all existed without AI for many years, but AI can drastically improve the efficiency levels, leading to a knock-on effect across the wider industry.

“Claims AI technology can reduce the time for a claim to be processed from weeks or months, to near real-time, and at a 97 per cent accuracy rate. That being said, some of our research shows that both insurers and customers believe that we shouldn’t totally hand over complete control to AI. By automating the mundane, while maintaining other important elements of the traditional insurance model, we can avoid over reliance. AI should be there to enhance, not replace roles.

Humans are crucial

“There’s been a broad misunderstanding of AI in the insurance industry up until now – that the purpose of AI is to replace claim handlers all together. But the human element is as crucial now as it’s ever been. Our research found that nearly 30 per cent of insurance customers are concerned about losing human interaction where AI is used, and a further 43 per cent lack trust in AI’s decision-making.

“However, different people look for different things in their insurance claims process. In some circumstances, such as a claim on a vet bill, people prefer the journey to be fully automated due to the speed at which AI can solve these cases. Although, people still value human expertise and communication when it comes to more complex scenarios, such as complex medical claims, for which it’s important that the option of that support is reserved. It’s horses for courses, but one should not come without the other.

“Rather than replacing claim handlers, the use of this technology frees up crucial time in the claims process, so that insurance professionals can provide better and a more personal customer experience. With AI innovation, claims handlers will be able to handle more complex claims and spend more contact time with their customers.”

Medallia

“The insurance sector’s seeming reliance on AI isn’t risky, it’s savvy,” says William Perry, VP UK&I and MEA at management software company Medallia. “Initially fuelled by a need to manage the rising proliferation of data, it has resulted in industry-wide innovation – enhancing the entire customer journey from initial policy purchase, right through to underwriting and making a claim. Such is its perceived value, that Allianz believes it could add $1.1trillion to the insurance market annually.

“AI is arguably just helping the insurance sector to keep pace with the scale of innovation it has to respond to. Indeed, from the rise in autonomous cars with self-driving capabilities, to the continued prevalence of connected devices, insurers need to use tools like AI to connect, use and analyse the data generated – or risk being left behind.

“As with all successful implementations though, technology must be coupled with the requisite human expertise if it is to reach its potential. Securing buy-in from the C-Suite to invest in engaging the right people to mould the strategies to harness the full power of AI, will be essential over the coming months and years.”

Stellarman

Will Larcombe co-founded technology and change delivery consultancy Stellarmann in 2020, with his business partner Alex Colwell. He thinks investing in AI is a must.

“The greatest risk to the insurance sector is surely not investing in AI, he says. “Businesses cannot afford not to, if they are to meet customer expectations, drive time and costs saving efficiencies, gain competitive edge, and detect fraudsters – who are themselves a step ahead with GenAI.

“There are literally hundreds of potential applications for AI in insurance though, so businesses must prioritise by identifying the solutions that make most sense for their specific operations, customer base and architectural framework.

“Highly specialist human expertise is essential to successfully manage the introduction of AI and businesses will need to bring in expertise in the following areas:

• Understanding the businesses areas where AI will bring most value
• Implementing the technology
• Maintaining up to date, relevant, clean data – as AI is data dependent
• Negotiating changing regulations
• Ensuring all stakeholders know what and why things are changing

“The talent pool in this emerging area is still small and relatively undefined. As such, finding and and retaining these new skills and experience is the first step towards successful AI adoption and so competition for human expertise will be high. To attract the best and get the most from AI implementations, organisations will need to show they are serious about investing in AI.”

This March, The Fintech Times is shifting its spotlight towards insurtech, such as how advanced data analysis is driving efficiencies across the insurance sector.

From enhancing risk assessment accuracy to personalising products and services, insurers are leveraging data analytics to optimise decision-making processes, mitigate risks and cater to evolving consumer needs.

Industry experts share insights into the pivotal role of data in reshaping insurance operations and strategies worldwide.

Huge impact

Data analysis, particularly predictive analytics, have made major strides to improving risk assessment in insurance, says Ashleigh Gwilliam, director of insurance industry growth at customer lifecycle intelligence platform FullCircl.

“Vast amounts of information can be analysed allowing for more accurate pricing, individualisation of policies and mitigation of future losses.

“Algorithmic analysis is also having a huge impact on actuarial departments, identifying hidden trends in data that can uncover the real reasons for claims, advanced analytics can also identify key trigger moments when a claim is likely.

“Fraudulent claims are a key concern for every insurance company. Data analytics can improve detection rates – analysing documents and information for areas of potential miss-representation and inaccuracy – whilst ensuring claims are paid quickly and cost effectively.

“In BIBA’s 2024 Manifesto, it encourages brokers to “meet the needs of the modern economy” and “respond to emerging risks”. Advanced data analytics will have an increasingly important role in modern insurance decision, identifying trends and customer needs and driving innovation in products and services.”

Streamlining workflows

Rajeev Gupta, co-founder and chief product officer of Cowbell, an adaptive cyber insurance company, suggests that advanced data analytics, particularly in cyber risk assessment, enables businesses to gain clarity, simplify processes and improve efficiency and accuracy.

“Data analytics is not new to insurance. Actuaries have been analysing data for pricing and claims reserving for decades. However, the landscape has evolved lately, with advanced data analytics now used by insurers in all other areas of the business – from risk assessment and fraud detection to improving operational efficiency and even refining product roadmap.

“At Cowbell, we are actively assessing the cyber risk posture of over 39 million businesses in the US and the UK. With our rich data pool, we enable businesses to gain clarity about their cyber risk posture in relation to their industry peers in just minutes, while also simplifying and expediting the quoting process for agents, and making the underwriting process more objective.

“By automating processes and streamlining workflows, they are able to reduce costs, improve speed, and increase accuracy across various workflows.”

Improved efficiency

AI-driven tools are enabling personalised quoting, dynamic policy management and streamlined claims processing, according to Scott Logie, chief commercial officer at independent UK consultancy.

“Data analytics, particularly tools underpinned by AI, is powering more efficient, intelligent decision-making across the insurance pipeline and customer lifecycle.

“At the beginning of customers’ journeys, analytics is making quotes generation more personalised. Historically, insurers grouped customers into broad segments based on basic profiles. Now, machine learning models enable more datapoints to be analysed, creating accurate risk profiles for designing bespoke offers. We see this technology in action on comparison sites, which are underpinned by models trained on existing quotes for age, location, house type, and car make or model.

“Analytics is also used by insurers to manage ongoing policies. AI tools review customer data and suggest edits to premiums when a customer’s situation changes. For example, moving into a higher risk area or buying a more expensive car.

“Finally, AI is making claims decisions more efficient. Often, the basics around who, why, when and what are now dealt with automatically based on machine learning models trained on past claims. With fewer manual tasks, insurance advisors and experts can dedicate more time to complex cases and tasks that bring more value to the business.”

Better policy decisions

For Sarah Carver, head of retail banking, wealth and insurance at global financial services provider Delta Capita, insurers can make better, more informed decisions, optimise their internal processes and create value for both the business and the end customers by leveraging advanced data analysis.

“We see particular value driven in three key areas:

• Risk: Insurers can use advanced data analysis to both evaluate risk and then personalise risk assessments using both historical data and predictive scenario based modelling to predict future behaviour. This can also be meshed with individual behaviour patterns allowing for an enhanced risk picture and better policy decisions.
• Customer insights and servicing: Data-driven insights can help insurers understand customer preferences, behaviours, and needs better leading to much better servicing of these customers whether on a micro level of individual servicing or on a macro level to future product development and marketing strategies. Advanced data analysis can also help identify and prevent fraud before it occurs saving cost and retaining customer trust.
• Efficiency and precision: Whether in processing claims more efficiently through analysis to determine where time should be spent, setting precise pricing by using better data to offer both competitive pricing but also less generic ‘one size fits all’ approaches.”

Getting ahead

Alex Littlejohn, executive VP at US insurance brokerage Alliant Retail P&C, says that with the insurance industry’s increasing ability to understand analytics and uses for collected data, analytics are taking on a larger role in how underwriters review, charge and provide capacity on insurance programmes, in addition to leveraging claims analytics to understand how losses impact coverages.

“Assessments conducted based on insureds’ data affects how the insurance community rates and evaluates risks.

“From an insured perspective, analytics allow them to get ahead of underwriters’ decisions, enabling decision-making on limits and deductibles for programme optimisation, both prior to shopping the insurance market and then evaluating conditions they receive back from the market.

“We’ll always move forward in terms of how data and analytics impact decision-making, both in how clients decide to buy risk and mitigate their risk, and how insurance companies decide to provide capacity and charge for the risk.”

Better price risk

Insurance companies worldwide are adopting AI to understand better how insureds drive, says Rashid Galadanci, CEO and co-founder of Driver Technologies, an AI-based mobility tech company

“Specifically leveraging video telematics-based scoring, insurance companies can now underwrite and classify the risk based on how an individual, or even a whole fleet, really drives instead of traditional factors like credit scores or motion-only telematics, which miss critical factors like tailgating and traffic sign adherence.

“Telematics with video analysis is also incredibly valuable for the claims process for users as visual ground truth cuts substantial time and costs from the claims lifecycle and, in many cases, can eliminate any need for arbitration.

“Additionally, to assess and design safer communities, we must understand our current road infrastructure by studying anonymous road safety and road risk information to develop insights into the types of improvements we need.

“By analysing real-world, location-specific road risks derived from regular and image-based road segment data (RSD) using telematics and computer vision data, insurance companies can better price risk while educating their insureds with insights into the most dangerous intersections and best roadways to keep them safe.”

Better predictions

David Bairstow, chief product officer at EagleView, a provider of aerial insights for insurance companies in the US, underscores the critical role of data and analytics in helping insurers address significant challenges such as talent retention, increasing population density in disaster-prone areas, and economic pressures.

“The insurance industry is facing significant challenges. Employees with deep experience are retiring. Attracting new talent is proving difficult. Externally, more people now reside in areas often affected by severe events, increasing pressure on insurers to more effectively underwrite those property risks.

“Further, large-scale events also present challenges in effectively servicing insureds after such events occur. And recent inflationary trends continue to damage insurer economics.

“To stay competitive, carriers will need to use data and analytics to pro-actively assess climate risk and model property portfolio exposure. Being able to better predict catastrophic impact and forecast maximum exposure value – before events even occur – will help insurers manage their underwriting and pricing strategies.

“In the aftermath of large-scale events, property intelligence and analytics can be critical tools to help insurers better service their customers. For example, leveraging timely, high-resolution aerial imagery captured at scale across affected areas can help insurers to begin processing claims much faster and, in many cases, before First Notice of Loss (FNOL) is even filed by the insureds.

“Innovative data, analytics, and technology approaches like these will help insurers better serve their customers while also helping improve the structure and financial performance of the carriers’ property insurance portfolios.”

Improving accuracy

James Harrison, global head of insurance at Dun & Bradstreet, a business intelligence and data company.

“In today’s insurance landscape, the power of data analytics cannot be overstated. Advanced data analysis techniques are revolutionising how insurers assess risk, price policies, and make strategic decisions within the industry.

“One primary way data analysis is reshaping the insurance sector is through improving the accuracy of risk assessment. By leveraging vast amounts of data from multiple sources, insurers are better positioned to conduct real-time risk analysis for individual and systemic risks, which leads to precise underwriting decisions and reduced exposure to losses in a volatile risk environment.

“Moreover, data analytics enables insurers to personalise products and services to meet the evolving needs of customers. By analysing data like customer demographics, behaviour and preferences, lifestyle habits; insurers can tailor offerings, pricing, and coverage options according to the consumers; thus enhancing customer satisfaction and loyalty.

“Data analytics is empowering the insurance industry by utilising data-driven decision-making to optimise the entire value chain. In a competitive landscape today, insurers who embrace these technologies and leverage the power of data will not only simply survive but also set a precedent for a new era of more customer centric innovation.”

There is a strong demand for travel insurance products across all age groups according to new research from KoverNow, the digital insurance platform. Its research, done with the National University of Singapore, has revealed a preference to use digital channels when selecting and buying policies.

The KoverNow research, looking into the attitudes and behaviours of smartphone users towards the purchasing of insurance products and services, also revealed an inclination toward ‘metered’ policies that can be turned on and off on demand.

Of the 500 Singaporeans surveyed by KoverNow, 64 per cent of all respondents, irrespective of income, said that they had previously bought travel insurance and plan to purchase it in the future. 43.7 per cent travel two to three times a year. Of this group, a huge 91 per cent said that they would buy travel insurance in the future.

Twenty-eight per cent travel more than three times annually, of which 84 per cent currently own, or have previously bought, travel insurance. Only 1.5 per cent have never bought a policy to protect them while travelling.

Stephan Kaiser, CEO at KoverNow, said: “Singaporeans love to travel, and believe in the importance of insurance to protect themselves and their valuables. The sentiments expressed in the survey can be seen in the attitudes of our own customers, who use the KoverNow app to ensure they purchase both travel cover and dedicated items in one easy transaction.

“We also now clearly see the tip of the iceberg in consumer preferences entering the market through Gen Z customers who won’t even consider non-digital supply channels … which is a clarion call to the entire insurance industry.”

Purchasing preferences

While 53.4 per cent of all respondents have used an online website for purchasing insurance, 11.8 per cent have used a mobile app. A third (33 per cent) said they had previously used a non-digital channel, such as a financial agent, or a broker, as their preferred channel. However, only eight per cent had used a landline phone. Among those who travel two to three times a year, just 5.8 per cent chose a non-digital channel as their preference.

The majority (70 per cent) of the respondents in the survey were between 22 and 40 years old, and 30 per cent were aged between 40 and 60.

When asked for their views on mobile insurance apps, 38.2 per cent of the 56-60 age group – which accounted for 11 per cent of respondents – ranked their level of comfort with mobile applications at two (with one being most comfortable and five being least comfortable). 31.7 per cent of 22-25 year olds said the same, as did 31 per cent of 41-45 year olds. Among the younger age group, 95 per cent were comfortable overall with purchasing insurance using an app.

This finding reflects the results of a 2021 KoverNow survey of Millennials in Singapore which showed that they would be open to using a mobile app to purchase insurance. It is also reflective of the rapid hockey stick adoption rate for apps among Gen Z consumers.

The top five most important factors for Singaporeans when choosing a channel to buy insurance are: personalisation; brand reputation; clearly presented products and services; the provider being available where the customer is; and prompt service. The least important aspect is the removal of human interaction.

Policy preferences

The KoverNow research also asked respondents for their attitudes to policy features. Across all age groups, 79.6 per cent said they thought it was important to have ‘metered’ insurance that could be turned on and off on demand. When asked about the ability to value an item as an additional service, 45.3 per cent said it was very, or quite important. Premium affordability and coverage, however, is the most important priority.

This March, The Fintech Times is turning its focus towards insurtech, shedding light on the innovative advancements and sustainable initiatives within the insurance sector.

As the world grapples with the increasingly urgent need to address climate change, industries across the board are being called upon to play their part in mitigating its effects. Among these, the insurance industry stands as a critical player uniquely positioned to drive sustainable initiatives and proactively manage climate-related risks.

To shed light on the ways in which the insurance industry can take the lead in this endeavour, we’ve gathered insights from industry experts into the strategies, policies and innovations that can empower insurers to navigate the challenges posed by climate change while advancing sustainability goals.

‘Decarbonise portfolios, innovate insurance solutions’

The insurance industry has a critical role to play in the fight against climate change, says Gus Majed, CEO and founder of insurance group Paratus, pointing to initiatives such as the Net-Zero Insurance Alliance (NZIA) aimed at decarbonising underwriting portfolios.

“Launched in 2012, the UN Environment Programme’s Principles for Sustainable Insurance Initiative (PSI) acts as a framework for the industry to tackle ESG risks and opportunities. One of the most important programmes to come out of the PSI is the Net-Zero Insurance Alliance (NZIA) which along with its partners is focused on decarbonising insurance and reinsurance underwriting portfolios.

“There are currently 535 corporates committed to it, however, the conflict between the NZIA commitment and the need to produce electricity at an affordable price, has resulted in members’ exits over the last couple of years.

“This power industry challenge is also tied to the issues around renewable power generation and how infrastructure owners optimise their financing to attract institutional capital from banks and infrastructure funds. The Paratus Group’s purpose is to facilitate decarbonisation by accelerating the transition to renewable energy and sustainable fuels. This is the exact industry challenge that created the opportunity for us to innovate and try solving the problem through our energy price risk insurance products, thereby
allowing the economic gains to pass directly to the insured.

“Our developed renewable power price protection policy (pending regulatory approval by the Guernsey Financial Services Commission) mitigates balance-sheet price risk and thereby enables renewable power and sustainable fuels to be more economically competitive, whilst concomitantly reallocating more capital to the energy transition. So, it supports both the renewable power generation sector and those with a renewable power transition programme.”

‘Better predict and manage risks’

Heikki Vesanto, manager of GIS data science in the insurance division at LexisNexis Risk Solutions UK & Ireland, outlines the urgency of addressing climate change-induced flooding in the UK.

“The current annual £700million cost of flood damage to the UK could increase by more than a fifth in today’s terms over the next century due to climate change, unless all international pledges to reduce carbon emissions are met.

“A stark fact, yet with the UK climate already moving towards drier summers, with wetter, warmer winters the urgent need for better planning, increased flood resilience in buildings and use of appropriate geospatial data to mitigate risk, is pressing. In direct response, the data insurance providers need to better predict and manage risk is growing – from basement indicators to ‘live’ flood alerts, geospatial data intelligence for insurance is expanding at a pace.

“The use of targeted geospatial data at point of quote through data enrichment or in map form through geospatial data visualisation tools such as LexisNexis® Map View, is helping to identify customers and properties at present or future risk – from flood to subsidence to windstorm activity. It allows insurance providers and their customers to assess the risks of today and help prepare them for those of the future.”

‘Innovate with climate-conscious actions’

Ryan Cox, senior director and head of AI at Synechron, a global digital transformation consulting firm, also endorses the critical role of data in insurance.

He says: “Insurance companies play a pivotal role in combatting climate change. Leveraging weather data and predictive analytics, they empower individuals and businesses to reduce their climate impact. By offering specialised insurance for natural disasters and promoting green investments, such as aligning portfolios with environmental objectives, they redirect capital towards renewable energy and green bonds.

The insurance industry also creates new insurance options for climate risks and collaborates with stakeholders to advocate for eco-friendly policies. By integrating climate risk into their core operations, insurance companies make tangible contributions to sustainable initiatives.”

‘Reduce electric car insurance costs’

John Ellmore, editor and spokesperson for Electric Car Guide, has stressed the need for insurance companies to address the high cost of electric car insurance, which acts as a deterrent for UK drivers considering the switch to electric vehicles.

“The current cost of electric car insurance is too high and it’s becoming a deterrent to UK drivers looking to switch to electric.

“Insurance companies must step up their efforts to address this challenge. By developing tailored insurance products that cater specifically to the unique needs of electric cars (such as specialised coverage for battery life, electric motor issues, and advanced driver-assistance systems) they can start to reduce overall costs for consumers.

“Insurance companies must also be agile in responding to emerging data about the safety of electric cars. As evidence mounts showing that EVs can be safer than traditional vehicles, insurers must adjust their risk assessments and pricing models accordingly.”

‘Incentivise sustainability, invest in green’

Neeraj Gupta, CEO at insurance marketplace Policybazaar UAE, advocates for insurers to incentivise sustainable behaviours and invest in green projects to address climate-related risks.

“The insurance industry can play a pivotal role in advancing sustainable initiatives and addressing climate-related risks through several strategies. Firstly, insurers can incentivise policyholders to adopt environmentally friendly practices by offering reduced premiums for sustainable behaviours such as energy efficiency, EV vehicles and more.

“Additionally, insurers can collaborate with government agencies to develop innovative insurance products tailored to climate resilience, covering risks associated with extreme weather events and rising sea levels.

“Moreover, the industry can invest in green bonds and sustainable projects, fostering a transition to a low-carbon economy. Embracing advanced technologies, such as satellite-based risk modelling, can enhance risk assessment and support more accurate underwriting in the face of climate change.

“Insurance companies can also engage in public awareness campaigns, educating businesses and individuals on climate-related risks and mitigation measures. Lastly, by actively participating in industry forums and supporting regulatory frameworks that encourage sustainability, insurers in the UAE can contribute significantly to broader environmental and climate resilience goals.”

‘Integrate sustainability measures’

Luca Russignan, head of insurance at Capgemini Research Institute for Financial Services, suggests a pivotal shift towards integrating sustainability within insurance operations. He highlights the importance of integrating environmental, social, and governance (ESG) considerations into corporate strategies.

“As climate change escalates loss events, property and casualty (P&C) insurers have an opportunity to champion sustainable resilience solutions that bolster financials results, ensure trust, and tackle growing insurability concerns.

“Some insurers are already restricting investments and coverage of unsustainable companies. Although, exclusion is not enough. The industry needs to play a bigger role in enabling the transition to a more sustainable economy. The urgency is significantly rising, with 56 per cent of senior executives surveyed in 2023 expressing concern about climate events, up from 44 per cent in 2022 as per a recent Capgemini report.

“Forward-thinking insurers are integrating Environmental, Social, and Governance (ESG) resiliency into corporate sustainability strategies. This requires re-evaluating the business model to balance risk management and risk prevention, while partnering with clients, local governments and regulators to develop diversified and sustainable risk transfer solutions.

“Essentially, climate resilience demand insurers to fully embed sustainability within their strategic and operational DNA to deliver innovative solutions, tackle insurability concerns, and remain profitable over the long term. Yet, according to the Capgemini World Property and Casualty Insurance Report 2022, only eight per cent of insurers lead on this agenda with superior governance, advanced data and insights, preventative risk services, and ESG factors embedded across investments and underwriting decisions.

“As losses accelerate, it is critical that insurers deploy their risk management expertise to help the industry and society overall to navigate these challenges.”

Insurance Innovators Nordics is returning to Copenhagen, Denmark for its ninth year from 18 to 19 March 2024, at the Radisson Blu Scandinavia Hotel, welcoming over 500 insurance leaders from across the Nordic region. 

Insurance Innovators Nordics returns to bring together a community of industry leaders and innovators to network, learn, and define the future of insurance.

Geir Holmgren, CEO of Gjensidige, the Norwegian non-life insurance company, is set to address insurance leaders from across the Nordic and Baltic regions at the event.

Geir will present on how to thrive in a new insurance landscape, and join a panel on ‘Strategic priorities for 2024 and beyond’ debating the implications of topics such as geopolitical risk and economic uncertainty, the rise of new insurance risks and a hardening reinsurance market.

Gjensidige will join a host of other leaders from major insurance brands including Henrik Ryden, CEO of Marsh McLennan; Ursula Clara Deschka, CEO of ERGO Baltics; and Guðbjörg Guðmundsdóttir, CEO of Vörður.

2024’s edition of the event plans to cover a broad range of key themes:

• The green transition
• Embedded insurance and ecosystems
• The rise of on-demand insurance
• Innovations in underwriting
• The future of motor insurance
• The generative AI revolution

See the full speaker line-up here.

Travellers have sometimes struggled with protecting their valuables like smartphones, tablets and laptops due to poor insurance clarity on how to make a claim and if they are entitled to coverage. A new partnership between insurtech bolt and WorldTrips, the travel insurance plan and assistance service provider, is looking to solve this pain point.

Covered travellers will have access to fully digital 24/7 online claims process provided by bolt, allowing them to file a claim easily at any time and from anywhere in the world. The long wait till they get home from their trip to make a claim is no longer a factor.

Travellers have access to bolt’s global repair network that will help them get quickly reconnected to keep in touch with friends and family while traveling. They will also be able to maintain access to important features like cameras and location sharing, and information such as digital wallets and emergency contacts stored on their devices.

Clayton Bodnarek, EVP of alternative distribution, bolt, said the partnership reinforces the company’s mission to respond to customer needs and protect customer devices when they need it most.

“Our work with WorldTrips speaks to the importance of staying connected with friends and family while travelling, especially for students and those who are travelling for business,” he said. “Together, WorldTrips and bolt developed a solution that is affordable and easily accessible to every type of traveller, providing peace of mind that you will be protected and connected even when you’re away from home.”

Only pay for what you need

With bolt and WorldTrips’ offering, travellers can add this important coverage for their devices when purchasing their travel insurance and pay only for the device protection they need while they are travelling. The plan covers all individuals and their devices in the travelling party of the insured, helping customers save time and money.

“At WorldTrips, we are constantly considering pain points that impact travelers and finding ways to address them with simple and affordable solutions,” said Mark Carney, president and CEO, WorldTrips. “We see bolt as an ideal partner because of their unique device protection product that is easily accessible at any time and anywhere in the world. With people storing so much critical information on their devices these days, it is paramount to ensure those devices are protected when people travel.”

Since launching its device protection capabilities in June 2022, bolt has announced partnerships with several global insurance leaders. Additionally, partners have seen up to four times year-on-year growth in policies sold through the program.

WorldTrips, located in Carmel, Indiana, is a member of the Tokio Marine HCC group of companies. Tokio Marine HCC is a specialty insurance group and a member of the Tokio Marine Group, a premier global company founded in 1879 with a market capitalisation of $49billion as of December 31, 2023.

Google Cloud has strategically partnered with Admiral, the financial services company in the UK, to improve its core insurance operations and enhance customer experiences.

Following the agreement, Google Cloud will power Admiral’s core insurance operations, including insurance policy administration and digital systems. Admiral will also use Google Cloud technologies to develop new digital products and services, such as making further improvements to its customer-facing mobile app.

Using its centralised view of data, Admiral will deliver more personalised and seamless digital experiences to its customers, including personalised offers and tailored services. Admiral also plans to use Google Cloud to bolster its digital channels, including its website, mobile app, and contact centre.

Admiral explained that the collaboration will enable it to accelerate time-to-market for new products and services by deploying containerised cloud applications and adopting new software development practices. The firm will also continue to improve operational efficiency using Google Cloud’s data analytics capabilities, and better serve its customers with Google Cloud’s AI and machine learning services.

Committed to upskilling

Alan Patefield-Smith, CIO at Admiral, commented: “With our customers at the heart of everything we do, Admiral is delighted to join forces with Google Cloud to help us achieve our strategic goals. Google Cloud’s cutting-edge tech and expertise allow us to accelerate our digital transformation journey and help us to deliver forward-thinking customer experiences.”

As part of the partnership, Admiral will work with Google Cloud to upskill its employees in cloud computing and data analytics skills. The move comes in an attempt to ensure that Admiral is able to take advantage of the latest cloud technologies and deliver better products and services to its customers.

Helen Kelisky, MD of UKI at Google Cloud, also added: “Admiral is an innovative insurer that has delivered many firsts to the market. We are proud to support its continued commitment to giving its customers the very best products and services across its insurance portfolio. We look forward to strengthening our existing relationship with Admiral to help it accelerate its change strategy and deliver even better experiences.”

Admiral will continue to support external initiatives such as Code First Girls in collaboration with Google Cloud.

The world of insurance was present in Fulham at the Hurlingham Club in February as the two-day Digital Insurance Summit set out to tackle some of the biggest hurdles in the industry.  

The common denominator throughout the Digital Insurance Summit was understanding your customer, in turn allowing you to provide them with the best possible experience without compromising risk or cost. The event had over 150 attendees hear from industry experts exploring how to set up product development teams for success, how to completely uproot and revolutionise legacy tech, how to leverage new technologies and more.

A variety of panels and discussions took place throughout the day covering what was needed to build the best customer-centric experience, how to grow digital partnerships, and more. Here are a few of our highlights from the day.

The Digital Insurance Summit began with an opening keynote by David Clamp, founder and chair of the Camelot Network who welcomed everyone to the event. Having set the scene for what the following two days would have in store, Clamp was joined on stage by Steven Zuanella, group chief digital and innovation officer at Generali Group. On stage, he highlighted the variety of new digital capabilities and how an innovative culture can drive operational efficiencies.

Delivering a customer-centric experience 

Zuanella highlighted the importance of the customer in the insurance cycle: “Never has it been more important in my view to have the customer at the heart of everything you do and that’s not always an easy way of working in large organisations with lots of priorities – particularly on efficiency and investment. It’s about finding a balance between genuine customer centricity and everything else that drives change.”

The conversation between Clamp and Zuanella turned to customer experience vs cost efficiency. Despite a desire for a focus on the customer experience, Zuanella admitted “in the short term cost efficiency will always win [the funding].” He explained that customer experience investments can take a couple of years before a positive, worthwhile outcome can be seen. Due to cost pressures everyone is under, it is no surprise firms are looking towards short term cost efficiency first and foremost.

Although the idea of a digital world has spread like wildfire, Clamp aimed to strip it back to its true meaning, asking Zuanella what digital meant. The group chief digital and innovation officer responded by saying: “Digital is what your business strategy looks like today. It can be short-term automation, CRM, customer propositions or digital distribution channels – all these are digital.

“The best way to find out what is digital for your company is by asking your customers and employees. We do this every year and what we’ve seen is people want the business simplified, with the bureaucracy taken out. It’s a lot easier said than done.”

The duo then discussed the digital tools firms use, with Generali as an example. “Automation is a really big area of opportunity because you can access the sweet spots to improve customer experience and cost efficiency at the same time. For me, that’s a win-win,” concluded Zuanella.

A buzzing environment 

The optimistic nature of the conversations had at the Digital Insurance Summit Europe was reflected in the audience’s response throughout the event. Tables were constantly encouraged to discuss topics being presented, contributing their responses to the greater discussion with the panellists. Laughs were had by not only the audience but the panellists too as audience responses took jabs at the slow nature of incumbents and the uncertain future of budding insurtechs.

While there was an air of lightheartedness across the event, the responses the panellists gave to the questions were in-depth and insightful. What made conversations even more engaging was the diversity of opinions.

Evolve or innovate?

The first panel of the day, titled Differentiating your products: How can you create and launch new products that add value for tour customers and capture more market share, featured Richard Boyd, head of product – digital claims, Lloyds; Christopher Moore, head of ibott, Apollo; John Pyall, head of underwriting and product, Greal Lakes Assurance SE and was moderated by David Clamp, founder and chair, The Camelot Network. 

Following an introduction, Clamp proposed the question “what is new product innovation?” Having heard Moore’s response about how differentiating costs can lead to innovation for customers, Pyall said: “I’m beginning to hate the word innovation. We’ve been saying that at conferences I’ve been to for the last six/seven years. What I want to see evolved policies – not just a massive internal project.

“Let’s use our culture to evolve properly.” Moore defended innovation, understanding evolution was a needed phase. However, he explained that innovation must be embedded into company culture as even the smallest tweaks could result in massive growth. “I still count that as innovation,” he concluded.

Barriers remain

Boyd was brought into the conversation and hit on a common theme in the insurance sector: “Legacy tech is holding us back.” He further added that 85 per cent of tech capacity grows on maintaining systems rather than changing them completely. “If you get the infrastructure and culture set up, then you can move to an evolution model and make change happen quickly. This is instead of having to do a massive innovation project.”

The conversation turned towards customer-centricity with Pyall noting how regulators influence organisations’ decisions more than consumers. Looking at UK Consumer Duty he said: “Wonderful idea in concept right? But we actually stopped worrying what the actual customers wanted out of consumer duty and looked at what regulators required.”

A culture of innovation was one of the most important ways products could be differentiated according to Boyd. Finding one that fits within your existing operations, rather than coming up with a crazy idea off to the side or putting innovation on a pedestal is the best way significantly deliver value to customers.”

Collaboration vs competition 

Another notable panel from the event was Moving from competition to collaboration: How can you establish the right insurtech partnerships to bridge your CX gaps, drive efficiency gains and achieve agility?

Bessem Ayari, head of innovation strategy and scouting, ERGO Group AG; Ed Gaze, CEO and co-founder, Innovative Risk Labs; Elliot Gradwell, commercial director, Assurant Europe; Rosie Denée – head of Lloyd’s Lab Accelerator, Lloyds all took part on the panel with Tony Tarquini – director of strategy, 5189 Limited, moderating.

Tarquini set the scene, establishing insurtech to be the number one destination for venture capital funding in the world. As a result, he posed the question to the panel: why is investing in insurtechs so important?

“We don’t have to do everything on our own,” said Ayari. “Ultimately we need to find a balance between the agility that insurtechs can provide and the reliability and trustworthiness of incumbents in the sector.”

“The innovative minds of insurtech really challenge the box mindset of traditional insurers,” said Denée. She further highlighted the importance of having the right attitude when looking for an insurtech partner. “You need to be thinking five years into the future, not just months. You need to future-proof your organisation and this can’t be done by someone who has a BAU attitude.”

Gaze then noted that many people in insurance don’t want to take risks due to the possibility of failure. He explained the culture of procrastination and consulting which takes place which prevents any meaningful change from taking place.