Automated AI can remove mundane tasks in the insurance industry says expert
Published: August 9, 2019
Updated: September 1, 2019
Author: Luke Jones
CATEGORY: Industry Trends
Artificial intelligence (AI) has the potential to greatly improve the insurance industry while also being a significant disruptor. Job roles in the industry may disappear through the automation AI provides, but insurance companies may reap the benefits of the technology.
One industry expert believes automation will help insurers and brokers by removing tasks that are hugely time consuming at the moment.
Carlos Benfeito, Montreal-based head of insurance products at Element AI, said around 40% of an underwriter’s role is consumed by manual data entry and evaluation. The mundane and time consuming tasks could be removed through the automated AI models.
Speaking to Canadian Underwriter, he said the processes of data management are costing insurers time and money.
“All of those steps take time,” he said. “All of those steps require manual intervention.”
“[AI] It can really get the underwriter focusing on certain areas of an application or transaction while applying the AI in each of those [other] the areas,” Benfeito added.
Artificial intelligence can also improve how carriers handle data, allowing them to be more accurate with when to expect information to be delivered.
“We know that carriers are hard-pressed to get submissions out to their brokers or to their customers and win that piece of business – and getting that out as quickly as possible is important,” Benfeito said. “So using AI can help the underwriter either through certain steps or making decisions that really put the carrier in a place where they can respond to business and respond to the market much quicker than a traditional approach would allow.”
“It’s around customer satisfaction and broker relationship management, increasing their book of business, their top-line growth and even their bottom line as well,” Benfeito said. “The loss ratio and the expense ratio are driven by the efficiency around underwriting. So getting out quicker and using AI to enable that really has an impact across the board.”