Insurance innovation accelerating, claims Donnellan
The impact of automation on the insurance industry is happening at a staggering pace, according to Michael Donnellan, executive business process services leader at DXC Technology.
Speaking at the Intelligent Automation in Insurance: unlocking the artificial intelligence revolution conference, taking place in London today, Donnellan said there was an unprecedented rate of change in the market at the moment, as technology affected companies.
Donnellan said that technology was leading to an increasingly flexible workforce, with companies now able to operate 24 hours a day, seven days a week.
This is resulting in changes to the value proposition of many companies, with a 60 percent increase in unit cost as front offices automate, accompanied by a 50 percent reduction in automated back/mid office costs, he said.
For example, new technologies can allow new policies to be issued in 30 minutes and not three days, while at the same time technology allows the cost of claims to go down as overclaiming is steadily eliminated as the result of realistic claims being processed.
Donnellan said that the industry was facing three horizons: (i) robotic process automation; (ii) the creation of artificial intelligence engines; and (iii) the integration of intelligent automation platforms.
He added that companies need to understand exactly where they can automate and where they need to be agile to make changes. He also underlined the upcoming EU General Data Protection Regulation—how companies host their information is critical, as they need to host information in a secure environment, he concluded.
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