The Rise of the Digital Worker in Commercial Insurance

Digital Transformation - March 25 2019

Artificial intelligence, natural language processing and machine learning present new opportunities as businesses look for new ways to address productivity gains, talent gaps, maintain competitive edge, profitability, and customer retention. This is especially true for the Commercial insurance market, a several hundred-year-old market that is being bombarded by new entrants, new business models, and new delivery systems.

As with any market, cloud-based technologies are increasing in popularity for their ease of use, ease of access and speed of delivery. They also present multiple cost reduction opportunities as insurers no longer need to maintain, support and buy hardware. Now servers can be spun up in five minutes in cloud hosting environments like AWS, Google, and others, making the integration of new technologies in existing infrastructures much easier and faster.

These technologies are not only making it easier for corporate procurement, but they are making it easier for new market entrants to bring new business models to market. With the likes of Uber, Lyft, Airbnb, and others introducing new consumption methods, insurers are being forced to rethink their business and delivery models. As millennials and new buying groups come to market with a plethora of new buying demands, insurance carriers and brokers are being forced to not only look at their current workflows but how they go to market, response times and the overall customer experience. We are living in a world where expectations run high for immediate gratification. Swipe, click, click, done.

According to by 2025, customer experience will overtake price as a key brand differentiator. Essentially customers will be willing to pay a premium for an exceptional experience. With the internet providing customers with immediate access to global buying options, commercial insurers are being forced to examine traditional workflows to identify new ways to accelerate their response times to optimize user and customer experiences.

By leveraging digital workers, who don't need coffee, feel great every day from Monday to Friday, Christmas Day, New Year's Day and “come into the office” 24/7 365 days a year, insurers can automate and standardize high volume, repetitive administrative tasks. Augmenting their existing workforce with digital workers allows skilled knowledge workers to focus on high-value customer-facing functions like providing advice, customer relationships, and generating more net written premiums. Experienced knowledge workers are better utilized to spend time with customers, not manually populating excel spreadsheets and spending their precious time on data entry in downstream systems.

Embracing new technologies like Artificial Intelligence (AI) enables commercial insurers to augment existing human staff with digital employees that can read unstructured insurance documents hundreds of times faster and with greater accuracy. Insurance carriers can respond to a broker’s submission request in minutes rather than days, weeks, months or not at all. Over time, delays and lack of responses can lead to forever lost business. Brokers can also benefit from AI by conducting quote comparisons and policy checks in seconds, instead of hours. Mitigating the risk of errors & omissions and reducing their time spent manually populating spreadsheets allowing them to better tailor their services to clients, giving them more time to make recommendations and build relationships with customers.

Investing in purpose-built AI solutions for commercial insurance to digitize and transform workflows like policy check, quote comparison, submission triage, and submission prioritization and others with digital employees helps insurers and brokers work smarter, reduce costs, increase premiums written, attract the next generation of insurance professionals and ultimately improve the overall customer experience.

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