AI automation in the insurance field: Is it time yet?
Operationally, the group benefits space is still littered with legacy systems and outdated processes.
We are experiencing one of the greatest paradigm shifts in history. Of all the data that has been created in human history, 90 percent was created in the last two years. Devices connecting us in real-time are changing how we live, what we purchase, how we stay healthy, how we recover when sick and more.
Behavior psychology is being influenced by massive amounts of data that is mined and trained using AI. Machine learning and predictive analytics are going to give way to machines knowing more about what we want, before we know we want it.
Netflix created the hit show House of Cards based on our viewing behavior. The lead actor, politics and nefarious behavior all proved to lead to higher ratings. Using this data, Netflix then made an investment in the rights as well as the content, and created its highest watched show at the time.
Related: Digging deeper: Health data mining platforms surge ahead
Amazon is working on developing its Last Mile program. This is a program powered by AI analytics that has your packages on a truck near you before you even order it. Our packages could arrive in less than an hour. The data is out there and they are able to predict what we will buy based on our past behavior and shopping habits.
So what does this mean for us in group benefits? Our goal has always been to get the right plan to the right person or group at the right time. Isn’t that the crème de la crème? Insurance coverage was borne out of our need to be and feel safe and secure. We all want to be healthy and financially stable. We want to protect ourselves against disaster and accidents we can’t foresee. An unexpected car accident or illness can remove our sense of security, particularly if we don’t have insurance to protect us from the financial downside of those events.
That said, operationally, the group benefits space is still littered with legacy systems and outdated processes. These substantially prohibit our ability to leverage software, data, and interconnectivity that would allow us to get more of the right products to the right customer at the right time. This begins with creating new products that meet the needs of customers. From there, we need to help those involved in distribution (whether directly, through a producer/agent/broker, a sales executive, the business owner, the employee or the carrier) have a much better user experience. Finally, we need to educate individuals about those products and find ways to stay engaged. These steps are critical; none of these things are strengths in our industry.
CB Insights has said that “it is estimated that 30 or fewer manual processes account for 40 percent of an insurer’s cost of doing business and 80 percent of customer activity. Digitizing these processes can eliminate 25 percent-plus of these manual labor costs.”
Think about that; that is a staggering number! Take any number of manual processes, for example using a census. If you think about everything that goes into producing a census: getting accurate data, reconciling a census during a renewal, uploading a census and determining which census template is required for which of the multiple systems one has to manage during the quoting process–the process is both daunting and can be fraught with error How many years of our lives have been lost to copying and pasting census information from one system into another?
How much of that time could be spent on more strategic and meaningful tasks that are more customer-focused and educational in nature? And what about the 29 other manual tasks we commonly encounter when servicing our clients? What if we could automate them and utilize data to give us insights into what our customers want and need, instead of doing redundant manual tasks?
Jason T. Andrew is CEO and co-founder, Limelight Health. Limelight Health automates and integrates workflows that link agents, brokers, and underwriters.
Read more: