Filed Under:Carrier Innovations, Technology Solutions

Execs look to artificial intelligence (AI) for insurance revolution

Integration challenges persist, according to new Accenture report

Despite sunny predictions regarding the capacity of artificial intelligence to revolution insurance services, insurers remain challenged by data quality control, privacy concerns and infrastructure compatibility. (Photo: iStock)
Despite sunny predictions regarding the capacity of artificial intelligence to revolution insurance services, insurers remain challenged by data quality control, privacy concerns and infrastructure compatibility. (Photo: iStock)

Insurance industry leaders are convinced artificial intelligence (AI) will “revolutionize the customer experience and empower agents, brokers and employees,” according to the Technology Vision for Insurance 2017 study from Accenture.

“Our research shows that insurers are investing in AI technologies to, among other things, improve customer interactions based on written and spoken interactions, gestures, interactive touch displays and hybrid mixed-reality platforms that merge the virtual and the real world, with each customer exchange becoming increasingly personalized,” said John Cusano, senior managing director and global head of the Accenture Insurance practice. Accenture is an international management consulting and business services firm based in Dublin, Ireland.

Related: 3 reasons startup entrepreneurs love InsurTech

Insurance executives see AI as the solution to providing a better customer experience by enhancing sales and services, claims processing and underwriting.

The new report, entitled "Technology for the People," also concluded:

        • Three-quarters (75 percent) of insurance executives believe that AI will either significantly alter or completely transform the overall insurance industry in the next three years.
        • One-third (32 percent) believe that their own company will be “completely transformed” by AI within that timeframe.
        • An additional 39 percent believe that AI will “significantly change” their company.

The study is rooted in research conducted with Accenture’s Technology Vision External Advisory Board. That group is made up of more than two dozen public and private sector professionals. Researchers also interviewed InsurTech experts and business leaders.

Despite the sunny predictions, insurers also are vexed by such innovation challenges as data quality control, privacy concerns and infrastructure compatibility. 

 “As the technology evolves, insurers will need to not only address data quality and privacy concerns, but also revamp their IT architectures to support AI’s features and technical dependencies,” Cusano said. “Insurers that focus on empowering people with a human-AI experience and intelligently integrating AI into their company will benefit from a powerful combination that drives deeper customer engagement, stronger brand loyalty and more-sustainable profits.”

See also:

Keeping the human touch as AI takes hold in insurance

5 top insurance tech trends for 2017

Insurance 2017: Priorities for innovation, automation and transformation

 

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