Life insurance is on the brink of a transformative phase. While insurers have been gradually embracing digital transformation, the advent of AI, including generative AI, is propelling change at an unprecedented pace. As we step into a dynamic new year, life insurance companies are ramping up their efforts to reinvent themselves. This is a pivotal moment that demands bold action.
The following predictions in underwriting offer valuable insights into how life insurers can take decisive steps to truly embrace digitalization this year.
Generative AI is revolutionizing customer-centricity
Generative AI-driven customer-centric approaches are narrowing the gap between life insurers and their customers, enabling highly personalized product offerings and services. This trend is expected to soar to new heights in the coming year as advanced technologies facilitate deeper connections between customers, advisors, and insurers. Recent research by Accenture indicates that today’s insurance customers seek protection beyond traditional offerings, such as mental health coverage. To address these evolving needs, personalized guidance from advisors is indispensable. Generative AI extends the reach of hyper-personalized solutions to a broader audience, bridging existing gaps within the customer-advisor-insurer framework. Digital agents, diverse chat functionalities, and enterprise-level generative AI solutions are rapidly enhancing the customer experience within the industry.
Last year, it was emphasized how AI and automation advancements would enhance real-time underwriting decisions, facilitating a streamlined digital purchasing experience. This trend is expected to continue as more life insurers embark on digitalization initiatives this year.
The development of generative AI underwriting tools, such as Underwriter Co-pilot at Accenture, is anticipated to play a pivotal role in enhancing underwriting efficiency, risk management, and process optimization, while providing valuable insights. These technologies are crucial as insurers grapple with skilled labor shortages across the insurance value chain. While new technologies augment rather than replace advisors, they address different skill shortages. With the impending retirement crisis in insurance, the collaboration between humans and machines will become increasingly vital to support employees across core business functions.
A concrete example of industry implementation is Accenture’s assistance to a large A&H insurer in automating its claims process using advanced voice AI, AI-powered human assist capabilities, and digital virtual assistants. These initiatives resulted in smoother customer experiences and real-time guidance for agents during interactions.
Accelerating digitalization to kickstart the reinvention journey
While many life insurers may espouse digital underwriting processes, analog operations still prevail in numerous areas. The transition to real-time data and true digitalization is now more feasible than ever, provided insurers demonstrate the vision and leadership to embark on the reinvention journey. The goal is to achieve end-to-end digitalization in life insurance, transforming every aspect of the business by leveraging real-time data. By transitioning from paper-based operations to digital processes, insurers can unlock numerous benefits, including cost savings and improved efficiency.
Though complete reinvention may not be achievable this year, it is imperative to initiate the journey by focusing on key aspects of the business. Drawing inspiration from industry leaders like Ping An, who successfully launched digital solutions to enhance agent planning and sales performance, can provide valuable insights.
Transitioning from experimentation to implementation
Taking action is essential to kickstart any transformational journey. In the year ahead, several life insurers are expected to move beyond proof of concept and begin implementing transformative tools and mature technologies. This implementation phase will drive business transformation, revolutionizing everything from underwriting and claims processes to customer experiences. Intelligent data ingestion, a burgeoning technology area in insurance, offers significant advantages and serves as an excellent starting point for this phase.
In conclusion, the emergence of comprehensive beneficiary care services as a distinctive value proposition for new product offerings is a notable development to watch. As we navigate through this transformative period, it’s crucial for life insurers to embrace digitalization, leverage advanced technologies, and prioritize customer-centric approaches to stay ahead in an evolving landscape.
