In the early years of digital transformation, life insurers vying for top market position leaned on the newest technologies to boost the speed and operational efficiency of their services. 

Given the near-ubiquitous nature of digitization, the effectiveness of this approach may have run its course. Advanced technology, particularly AI, has become such a permanent fixture that it has leveled the playing field, no longer serving as the ace in the hole it once was for competing life insurers.

But AI is not a perfect solution for every pain point, and relying on it risks overshadowing the value of human touch. Insurers and agents can understand and address the varied needs, concerns and circumstances of individual customers empathetically – and for now, that remains beyond the realm of artificial intelligence.

After all, life insurance must be handled delicately. Beneficiaries who interact with insurers often do so at an especially sensitive time in their lives, which algorithm-driven systems are not yet best equipped to handle. Therefore, a life insurer’s true differentiator should be one that encompasses the best of both worlds, by leveraging technology that complements the human element of agent-to-customer interaction.

The Pivotal Role of AI

Considering its enhanced analysis and performance capabilities, AI has a pivotal role to play in simplifying and streamlining the complex processes that define the life insurance industry.

Filing insurance claims traditionally involved a series of cumbersome steps, from submitting information through navigating assessments, up until the payout stage. Likewise, underwriting for life insurance usually involves a drawn-out manual assessment of various factors such as age, gender, medical history and lifestyle choices.

Now, AI can significantly streamline risk assessment and pricing, allowing insurers to stay competitive while enabling policyholders to choose from an array of options tailored to their needs.

By simplifying the process, life insurers make coverage more accessible to a broader audience, which increases the likelihood that people will acquire a policy in the first place.

The Human Element

While innovative technologies have excelled in expediting insurance processes, their true success depends on the insurer’s capacity to use those tools to offer personalized support for families and inspire generational loyalty, a concept that would have seemed unimaginable just a few years ago.. 

Life insurance is a uniquely sensitive space because it encompasses so many highly personal matters: mortality, family well-being and financial security. For many, life insurance is more than a mere financial transaction – it signifies a particularly emotional and mournful time in a beneficiary’s life.

But it can also present an opportunity for insurers to foster emotional connections with the bereaved by helping to arrange grief counseling, plan funerals, write obituaries, settle financial affairs and navigate probate. To that end, traditional insurance agents have often been the most effective vendors of this service. Even amid the rise of digital processes, agents are guiding and comforting individuals and families through the difficult bureaucracy of policy purchasing and claims.

Although AI-driven chatbots and virtual assistants can provide responses and clarification instantaneously, they cannot fully replicate human compassion and sincerity.

For these reasons, some life insurance companies continue to offer policyholders the tried-and-true model of agent-customer relationships throughout the claims process, even as they roll out new digital-first offerings such as apps and platforms that redirect users to services for counseling, funeral planning and probate management, among others.

This personable, tech-blended approach not only reduces the workload for agents but does so without automating every interaction, thus preserving the vital human touch.

A Benevolent Blend

For all its bells and whistles, technology within the life insurance industry cannot operate in a vacuum. Digital processes still need that human touch to establish and maintain relationships and make policyholders and their families feel heard, seen and supported.

As marginal differences in speed and efficiency become less of a competitive factor, life insurers will have an opportunity to seek an alternative approach that strikes a balance between AI-driven automation and human interaction. This will ultimately result in a more comprehensive and supportive industry that not only meets the emotional needs of its policyholders but also drives an entirely new line of competition – one based on empathy and compassion.

KEY TAKEAWAY:

--There are hundreds of surety bonds with no underwriting criteria that are categorized as “instant issue.” Insurance agents can obtain these with relative ease from pretty much any provider. However, agents hoping to instantly receive quotes on harder-to-place risks should be on the lookout for providers with automated credit and financial underwriting capabilities.

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In late 2001, humanity was eagerly awaiting the unveiling of a technology so trailblazing that it would change the world forever. Apple co-founder Steve Jobs asserted that future cities would be designed around it, Amazon’s Jeff Bezos called the technology “revolutionary” and invested in its development. Others predicted it would eliminate our dependence on foreign oil. The anticipation of its release became so intense that the product had the most hyped launch since Apple’s Macintosh computer.

The product was the Segway scooter.

The surety industry is currently experiencing its own Segway moment in the form of instant-issue bonds. Brokers galore will boast about their ability to instant issue thousands of bonds when, in reality, all they are doing is auto-filling PDFs for bonds with no underwriting criteria.

In this article, we break down what “instant issue” really means and provide insights on the underwriting capabilities agents should actually care about.

The Cold Hard Truth

Instant issue is a loosely used term to describe surety bonds that are not subject to any underwriting requirements and can be issued to all applicants at the same price regardless of credit, business experience, etc. These bonds are so low risk that carriers do not need to attach any underwriting processes.

On these bonds, brokers collect the customer’s information by having them fill out an application and then transfer that information to the bond form. That is the entire process for writing an instant-issue bond. There’s no innovative technology involved, no expert skills required.

In short, instant issue = auto-filling PDFs for low-risk bonds without underwriting requirements.

See also: Exploring the Dual Advantages of Surety Bonds

What Really Matters

Any broker with a Wix or Squarespace account can provide you with instant-issue bonds.

However, very few surety bond providers can automate credit and financial underwriting, let alone incorporate other criteria such as information from obligee databases and direct application programming interfaces (APIs) to business accounting software. While “instant issue” refers to a category of low-risk bonds not subject to underwriting, automated credit and financial underwriting can instantly issue higher-risk bonds that require a credit check before issuance.
  
For example, a broker without automatic credit and financial underwriting capabilities will have to manually run a credit check on the customer after they submit an application. This takes time and effort, leading to delays in issuing a customer’s bond. If that broker had automatic credit and financial underwriting, their system would automatically run a soft credit check on the customer and be able to provide them with a quote instantly.

The Bottom Line

There are hundreds of surety bonds with no underwriting criteria that are categorized as “instant issue.” Insurance agents can obtain these with relative ease from pretty much any provider. However, agents hoping to instantly receive quotes on harder-to-place risks should be on the lookout for providers with automated credit and financial underwriting capabilities.

KEY TAKEAWAYS: 

--The climate around health insurance in the U.S. is continuing to change thanks to rising costs throughout the industry. 

--There are ways to make insurance more affordable for employers and workers to find coverage that accommodates modern needs. 

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Employer-based insurance has long been a cornerstone of the American healthcare system, providing millions of workers access to adequate coverage. However, the insurance landscape is undergoing a profound transformation, leading to the erosion of employer-sponsored plans. This blog post delves into the complexities surrounding the erosion of employer-based insurance and its implications for American workers. 

We explore the impact on workers, the evolving role of insurance brokers and agents and alternative coverage options available to individuals. 

The Erosion of Employer-Based Insurance

Rising healthcare costs are a problem across the globe. Medical spending growth includes a higher demand for care, technological advancements and the urgent need to develop more vaccines and treatment options. The U.S. government alone invested nearly $32 billion toward creating a COVID-19 vaccine. While other advancements may not seem as urgent to the public, the continual need and economic inflation affect how much insurance can cover and what employers can afford to meet that coverage. 

Insurance premiums increase because there is a higher price to cover healthcare costs. Employers spent an average of $15,159 in premiums for a family of four before the pandemic.

A change since the pandemic is the number of workers taking unconventional positions that allow for more flexibility or the ability to work from home. Gig economy or multiple part-time jobs can provide an income for an individual, but those positions rarely offer an insurance plan, causing workers to seek independent healthcare coverage. 

When more employees seek different career paths and have high insurance costs, employers are put in a position where it is either not worth offering insurance or they want to provide more-attractive plans to encourage workers to apply for full-time jobs. 

The last time there was a significant policy change was the 2010 passing of the Affordable Healthcare Act (ACA). The act mandated that employers provide insurance to 95% of full-time employees 26 or older. Public insurance programs like Medicare and Medicaid see more regulation than private options, which leads to significant disparities in price and coverage options among companies. 

See also: Employer Trends Shaping Workplace

The Impact on American Workers

While some Americans prefer a new, flexible work environment, many cannot stray from a nine-to-five job, especially when responsible for their children or older parents. 

Due to the rise in nearly all costs, more older adults remain in the workforce or are re-entering it. Without attainable insurance plans, they may have to opt out of the employer plan or be unable to afford other needed items. 

Another struggle is the ability to afford subpar plans that don't cover complex needs. When coverage is costly or absent, it discourages people from seeking preventative care or treating symptoms until they become dire. According to the Kaiser Family Foundation, one in five adults don't seek needed medical care because they fear they can't afford it. 

Though many hospitals will offer plans for patients who need emergent care, seeking preventative care can help individuals avoid those life-threatening scenarios. Such care also leads to better health outcomes. People with little or no coverage are unlikely to get routine screenings or go to the doctor when symptoms arise. The American Cancer Society reports that an insured person with stage II cancer is more likely to live than someone with stage I cancer who doesn't have insurance. 

When affordable or comprehensive care is inaccessible, employees must rethink their options. Depending on their yearly income, they may not fall into the right tax bracket for a low-cost ACA plan. 

Employers often reduce pay to afford healthcare costs, which strains employee relationships and could increase turnover. While surveyed employees say they'd rather have better healthcare than a higher salary, a pay cut at contract renewal often has workers evaluating options that can afford the same or greater salary with the same benefits. 

Seeking Alternative Healthcare Coverage 

When an employee can’t access employer health benefits or waives out of group coverage, there are other options that could benefit them and their families. 

Medicaid 

There are several benefits to Medicaid. It offers coverage for people who otherwise couldn't afford care. People with these benefits are more likely to seek care early and have better health outcomes. Kids who grow up with Medicaid are likelier to become healthy adults than those without insurance. Satisfaction ratings from people with Medicaid are comparable to those with private insurance. Because Medicaid is for low-income individuals, there are often lower out-of-pocket costs than with other providers. The program also helps low-income households find financial security. 

Gaps in coverage exist, with dental and mental healthcare hard to access for many on the plan. Physicians are less likely to accept Medicaid patients than Medicare patients or private insurance plans. Most doctors who accept Medicaid are based in community health centers, limiting the ability to choose among providers. The program's coverage can also be inconsistent, with states influencing how well people do on the plan. 

Affordable Care Act 

Subsidies can make health insurance less expensive, and administrative costs must be 20% or less of your premium. 

The ACA requires that qualifying plans offer at least 10 essential health services, including wellness visits without a copay or deductive. Plans also cannot deny coverage to someone with a preexisting condition. For many low-income individuals, the marketplace offers various options without needing Medicaid. Many are from companies employers offer plans from but at a more affordable price. Some companies will provide stipends to cover an ACA plan. 

If someone doesn’t qualify for a subsidy, they might find it difficult to find an affordable ACA plan. You can’t always pick and choose coverage options. For example, a single man might end up paying for maternity care coverage. 

Though the tax penalty for uninsured people no longer exists on a federal level, some states enacted mandates that could force someone to get an ACA plan they don’t want. The website can also be hard to navigate for non-tech-savvy customers. 

Health Sharing Plans 

A health-sharing plan allows participants to pay into an account that provides coverage for health care events. 

Anyone can pay into one of these plans at any time, and they are often more affordable than other options. There are also no restrictions based on preexisting conditions. Most of these plans in the U.S. are from Christian nonprofits, though you don’t have to be part of the religion to participate in most. Some prefer enrolling with these Christian organizations so they don’t have to support healthcare that doesn’t align with their beliefs. 

People often find a sense of community in these programs, with members sharing messages of encouragement and prayer. Some even offer coverage for adoptions or funerals. 

Most of these plans don’t offer full coverage for dental or vision services, and only some offer discounts. The service controls what expenses get covered and what isn’t, and members don’t always know if their care will receive payment from them. 

There are no health-sharing plan regulations, meaning members could receive no compensation if the organization behind one goes bankrupt. It is also hard to seek legal action against them. Health-share plans don’t qualify as minimum coverage, so employers cannot offer it as an alternative to another plan. While there are no specific restrictions for preexisting conditions, you may have to pay an extra fee. 

Whatever coverage you choose, it is important to research and ask questions before committing to the coverage. 

How Brokers and Agents Are Handling the Changes 

If a company has remote workers, a broker can help a company or the individual employer navigate which provider is best in which state and if a stipend is a better coverage option. Employers or employees need to work with a credible broker or agent who can guide the increasingly complex insurance industry. 

A certified professional should openly provide their credentials, including their license number, when asked. When not meeting at the company location, look at the company's website or call them to confirm that the person you're meeting works there as an agent or broker. 

When someone is desperate to find coverage, they could fall for a ghost broker scam, where an unqualified "broker" sells them a phony policy that providers won't accept and offers zero coverage for anything. Unsuspecting customers could spend hundreds or even thousands of dollars before they try to use the coverage and realize they invested in a fake company. 

As a reputable agent, you must not shame clients who had this experience. Some of these scams have phone numbers, websites and business cards that look very real. Phony agents can even forge credentials. Raising awareness about these scams can help others avoid them. 

Someone with expertise can ensure everyone gets the right information and coverage options. 

See also: How to Think About AI in P&C

The Future of Employer-Based Insurance

While there is no set policy, there are proposed solutions to preserve employer-based health insurance. 

There is strength in numbers. For employees to pay less for quality insurance, the employer must negotiate with the insurer for better rates. Alone, it’s hard for a company to succeed, but banding together with other companies and firms could give them more power. Insurance companies need customers. If multiple employees threaten to back out, it could provide the needed push for change. 

Of course, insurers aren’t solely to blame for high costs. Their response is partly due to rising health care costs. However, not all of those prices are necessary. 

One of the most recent controversies involved the price of epinephrine auto-injectors. Mylan Pharmaceuticals made a significant profit by increasing the lifesaving medicine’s cost by 400%. The controversy eventually led to intervention and a multimillion-dollar settlement–but it shows the sort of cost increase insurers must cover. Stricter regulations on pharmaceutical companies and capping prices for vital medications could help. 

There are other ways to provide sufficient coverage for employees. Companies can offer health savings accounts (HSAs) that the company and employee can use for free in any eligible scenario–such as dental and vision care or to help cover emergency expenses. These accounts are taxable when used, so it’s important to balance the amount available with the amount taxed. 

Employers can also come together to offer an association health plan, which helps everyone afford accessible coverage. There are some challenges with these plans. Businesses must conduct a risk and benefit analysis on whether there could be lapses in coverage or higher premiums. 

With these options, employers and workers have more opportunities to provide affordable coverage. 

Learning From the Erosion of Employer-Based Insurance 

As a broker or agent, you must know what others in and affected by the industry face. Finding the best solutions is challenging with the steady decline of employer-based options. However, there are ways to help both companies and their workers. 

Between rising healthcare costs and the global pandemic, you must consider many industry changes. With high prices limiting an employer’s ability to provide quality plans, more employees choose remote and hybrid work that doesn’t always offer insurance. You will likely see more individuals seeking advice on choosing personal health insurance through the ACA or other solutions. 

Other options like health-sharing and Medicaid offer different options for employees in need. However, there are challenges to these solutions, including lapses in coverage. Knowing the pros and cons of each available plan or alternative can help workers afford their care. 

As changes continue, organizations and policymakers will push for more options. It is vital to stay informed and seek advice if a policy needs clarification. Everyone can benefit from exploring their coverage options to support their well-being now and in the future.

KEY TAKEAWAYS:

--AI and actionbots will break through bottlenecks that can lead a high percentage of callers to drop a connection.

--In call centers, where annual employee turnover can be 100%, generative AI will help get new employees up to speed quickly.

--Actionbots will move AI beyond conversational capabilities to actively executing tasks and streamlining workflows.

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The true potential of AI extends far beyond just cutting expenses. The holy grail for businesses, especially in the insurance sector, is the ability to drive top-line growth.

Emerging technologies, particularly generative AI and actionbots, are at the forefront of this trend. It means that call centers will no longer be viewed as cost centers but an opportunity to turn these hubs of customer interaction into revenue generators.

Instead of navigating through a maze of menu options or waiting on hold, customers can interact with AI that will better understand natural language, ask relevant questions and upsell and cross-sell products. The AI will not only streamline the quote-and-buy process but also offer a more tailored and satisfying experience for the customer, increasing the likelihood of conversion and loyalty.

Let's take a deeper look at how technologies like generative AI and actionbots can transform the customer experience.

Breaking Bottlenecks

The typical customer phone call for obtaining quotes and finalizing purchases in the insurance sector is often cumbersome. It's riddled with multiple steps, from gathering detailed information like addresses and VIN numbers, and hobbled with the intricacies of legacy systems and compliance requirements. The inability to capture all necessary information during the initial call further complicates the process.

This complexity frequently results in high drop-off rates. It's not uncommon for conversion rates, even after a caller successfully reaches an agent, to hover in the single-digit percentages. Such inefficiencies not only frustrate potential customers but also represent significant missed revenue opportunities for insurance companies.

To put this into perspective, even a marginal improvement in conversion rates can have a profound impact on an insurer's bottom line. For instance, consider an insurance company that fields 20 million calls annually. If agents typically achieve conversion rates exceeding 80% once they engage with a caller, a mere 1% increase in initial conversion can unlock an additional 160,000 potential customer interactions.

By leveraging the capabilities of generative AI and actionbots, insurance companies can simplify these interactions, reduce drop-offs and capitalize on these previously untapped opportunities.

Leveraging Generative AI

For the call center, annual employee turnover can exceed 100%, leading to significant knowledge gaps and missed opportunities. However, generative AI can act as a force multiplier for new agents, regardless of their tenure. Instead of relying solely on traditional training methods, agents can be assisted in real time by AI systems that offer suggestions, prompts and insights tailored to address customer queries effectively. This not only accelerates the onboarding process but also ensures consistent service quality, even from those who've been on the job for a few weeks.

The power of generative AI lies in its ability to process vast amounts of domain-specific information, such as call logs, emails and product details. This deep understanding minimizes errors or "hallucinations" and ensures the delivery of relevant and accurate information to both agents and customers.

While traditional AI models often struggle with creating natural-sounding content or handling unstructured data, generative AI excels at these challenges. It offers a level of personalization and adaptability previously unattainable, making interactions feel more genuine and tailored to individual customer needs. This means going beyond the typical chatbot experience, which can often feel mechanical and not be responsive.

Another benefit of generative AI is stateful memory, which is about retaining and recalling information from previous interactions. Imagine a scenario where a customer doesn't have to repeat their details or query during subsequent calls. This not only saves time but also eliminates a significant pain point for customers, fostering loyalty and trust.

Actionbots

Actionbots represent the next evolution in AI, moving beyond mere conversational capabilities to actively executing tasks and streamlining workflows. It's not just about answering questions anymore; it's about engagement and tangible actions that enhance the customer experience.

A key to actionbots is pre-built integrations. An insurance company can rely on hundreds of systems, such as for CRM, ERP, billing and RPA, but actionbots can seamlessly weave themselves into those systems, ensuring that data flows smoothly and that tasks are executed efficiently. This integration becomes especially crucial when dealing with processes like quotes and purchases, which often require coordination across multiple platforms.

Here are some of the practical uses for actionbots:

• Fulfill reactive tasks: This involves automating requests from customers, such as password resets, updating address information and adding a newborn. It's critical to have prebuilt integrations that are connected to user inquiries.
• Get recommendations: Drawing from customer profiles and past interactions, actionbots can suggest additional services or products. For instance, after analyzing a customer's auto insurance details and driving habits, the actionbot might recommend adding roadside assistance or collision coverage. Or it could suggest something like: "Did you know you could save 20% on your premiums if you use a tracking system for your mileage?"
• Use automated content generation and workflows: Drafting FAQs or knowledge-based articles can be time-consuming. Actionbots, however, can analyze patterns in customer queries and autonomously generate content that addresses common questions. This not only ensures that customers have access to up-to-date information but also reduces the workload on human agents. Actionbots can automate complex workflows, such as adding an insured to a policy, selecting more coverage and adding a new vehicle. You can build these actionbot workflows by using no-code and low code, via drag and drop. You can even use a natural language prompt for this, such as, "First, update the CRM with the new profile and then add this to the billing database."

Conclusion

AI technologies, from generative AI to actionbots, will reshape the way insurance companies operate, engage with their customers and drive growth. The shift from viewing AI merely as a cost-cutting tool to recognizing its potential in driving top-line growth marks a significant evolution in business thinking.

The integration of AI into the very fabric of insurance operations, from call centers to CRM systems, anticipates challenges, breaks bottlenecks and delivers solutions even before the customer realizes they need them.

The future of the insurance industry is one where AI plays a central role, not just as a back-end tool but as a front-facing partner. As the industry continues to evolve, those companies that embrace and integrate these technologies will undoubtedly lead the way, setting new standards for customer engagement, operational efficiency and business growth.

KEY TAKEAWAY:

--Rather than continuing to tweak existing products, which risks making them even more complex and expensive, insurers can explore and develop new coverage options. There are now decades of mortality and morbidity experience data from millions of customers, and that portfolio is still growing. Coupling these data with the available advanced analytics of today means companies have an unprecedented opportunity to innovate.

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Ever since the first standalone long-term care insurance (LTCI) policy was sold in the 1970s, the product has been both a boon and a challenge for U.S. life insurers. It exploded in popularity in the late 1980s, but the generous underwriting and pricing that fueled many of the sales came back to haunt providers in the more straitened economy of the early 2000s. Since then, providers have exited the market in droves, and those with portfolios have had to levy substantial premium increases on policyholders. Today, only a few insurers still field long-term care cover, and it’s the rare ones that are actually writing new business. 

Does this mean LTCI as a product line in the U.S. market has had its day and that should be retired? 

In a word, no. 

A Rethink Is Due 

The need for middle-market insurance products that can affordably cover the many expenses associated with the long-term care needs of the world’s fast-growing senior cohorts has never been greater. Rare is the family that has not had to confront the unexpected costs of funding continuing care for a parent or grandparent. And with lifespans lengthening, the ailments of age are becoming more prevalent. Despite this, insurance companies are still understandably hesitant to enter or ramp up their participation.

How can this clearly evident market potential be translated into tangible products and services? More to the point: Can insurers develop LTCI products that can meet growing market needs for affordable long-term financial protection and still be profitable?

Right now might be an optimal time for insurers to think about ways to innovate long-term care products – how to make them simpler and still profitable to underwrite and sell, and at the same time affordable and sufficiently protective for consumers.

Taking on this challenge will require willingness to change traditional ways of thinking about LTCI cover. 

Rather than continuing to tweak existing products, which risks making them even more complex and expensive, insurers can now explore and develop new coverage options. There are now decades of mortality and morbidity experience data from millions of customers, and that portfolio is still growing. Coupling these data with the available advanced analytics of today means companies have an unprecedented opportunity to innovate in this market, undertaking sophisticated and highly granular analyses of their potential customers to develop products that can ease long-term care’s financial burden.

See also: Unlocking the Future of Long-Term Care 

Opportunity Is Here

Ideally, LTCI products can be developed for both group and individual markets, and insurance companies can benefit from collaborating with ecosystem partners, whether reinsurers, incubators or other knowledgeable third-party product development experts. One such recent RGA-developed innovation, caregiver insurance, is designed as an affordable short-term option for working individuals, who can buy it to cover cost of care for a loved one. 

Other innovations being examined include bundling long-term care cover with life insurance and disability, developing policy frameworks that can evolve as a policyholder’s age and needs change and policies focused on helping to keep seniors in their own homes. 

Ideally, LTCI should be easy for agents to sell, simple and affordable for customers to purchase and use and profitable for insurers to provide. More than that, it should serve the middle market’s real and current needs and be positioned to evolve along with market needs. Insurance companies have a remarkable opportunity to create much-needed social value now and over the long term.

Day in and day out, insurers handle thousands of documents and varied forms of content, often leaving them struggling to catch their breath. Content generated in insurance companies comes in different shapes and sizes, spread across applications, systems and departments. To access this content, insurers are forced to sift their way through scattered systems, testing their time and patience and resulting in lower productivity. 

For any insurance company, attaining operational efficiency while simultaneously grappling with the colossal volume of data generated from documents, emails, form submissions, social posts, photos/videos and instant messenger interactions is no cakewalk. And an outdated approach to content management only adds to their plight. One of the most common approaches to tackle the growing content volume was adding point solutions, which only led to complexity. 

A Square Peg in a Round Hole: Why Traditional Content Systems Fail the Modern Insurer

Traditional content management systems have a monolithic architecture with a single repository. Documents are mostly undigitized and require ample human interventions across processes. On the other hand, modern content services platforms have a modular, services-based architecture and large-scale federated repositories. This approach enables the modern insurer to ensure seamless collaboration across departments, processes and functions and easy access to the right content at the right time. Documents from all sources are digitized and support all forms of content. Powered by AI and machine learning, the modern systems drive intelligence into processes and decision-making. 

A modern content management system:

1. Enables a Centralized Location for Data Access and Management 

Insurers struggle with finding the right content on time and often get lost in the jungle of structured and unstructured data scattered across multiple locations and locked in siloed systems across the organization. 

Modern content management systems can help insurers store, access and manage all content at a centralized location. They support the digitization of all content, and the digital content assets can be tracked, secured and monitored more easily. Policy underwriters, claims officers and other stakeholders have a unified view of all the case-related information. They do not need to refer to multiple applications/systems for information, thereby improving productivity and reducing turnaround time. 

Documents for various processes like new business, underwriting, claims, policy servicing, provider management and agent/distribution management can be centrally archived and managed by the system. This enables streamlined processing between the branches of the Insurance organization and the sales partner. This, in turn, ensures the desired economy of scale, increased operational efficiency and efficient management of documents.

2. Delivers Context in Engagements and Allows Intelligent Decision-Making

Content analytics and AI-led technologies can help insurers extract information from documents, images and videos. They can automate processes using robotic process automation (RPA), artificial intelligence and machine learning to extract contextual information and actionable insights in real time. And the best part is it doesn't require heavy coding. 

A modern content services platform powered by AI can seamlessly integrate with the core system. It can analyze historical data and perform intelligent indexing to make content easily discoverable. Imagine pulling out data, an email or a recording of a current claim settlement! This kind of smart decision-making can improve customer experience and insurer productivity. 

3. Allows for Seamless Collaboration

In any insurance organization, a certain level of collaboration between stakeholders is required at every relevant stage after the case initiation. Be it adding or modifying comments on documents or sharing recommendations, stakeholders need to collaborate in real time to ensure process accuracy and avoid errors.

A modern content management system allows stakeholders to search, generate, bookmark and share multiple forms of content in pre-defined templates. It also enables them to initiate case-specific virtual meetings and conversations. With a content management system, organizations can enhance the collaboration between stakeholders and allow for faster resolution of cases. 

4. Enhances Security and Compliance

Insurers manage a massive amount of documents, images, audio, videos and other content daily. This content can also include sensitive information and crucial data that must be protected at all costs. However, poor enforcement of rights-based access to critical documents can make it difficult for insurers to enforce document security and integrity.

A modern content management system can enable security at document and data levels while allowing insurers to meet the evolving regulatory, reporting and internal governance requirements. It also helps them to ensure compliance with various security and retention standards.

5. Fast-Tracks Cycle Time

The massive amount of content waiting to be processed can hinder insurers hoping to improve their approval cycle time and deliver fast and efficient customer service.

By leveraging a content management system, insurers can keep track of any missing or required information and ensure that all information is collected and available for review on time. For instance, adjusters can track missing or required information during claims setup to ensure all information is collected and available for review before making key determinations.

A content management system can seamlessly integrate with existing IT systems and streamline multiple business processes. It can allow insurers to swiftly extend existing processes and create new ones. This can fast-track the workflow processes and help insurers achieve optimum productivity.

6. Ensures Exceptional Customer Service

Customers today expect swift and efficient service at every stage of the insurance policy lifecycle -- from policy initiation to policy renewal and claim settlement. 

With a content management solution, insurers can swiftly process the enormous content at their disposal and contextually engage with customers. 

For instance, what if your organization's content management system can leverage AI-enabled intelligent indexing to interpret historical data and make it discoverable? Suppose your system allows you to locate a letter, email or call recording from five years ago where the policyholder requested to modify certain aspects of the coverage that are currently impacting the claim. This can help insurers in ensuring intelligent decision-making, accelerating processes and delivering an exceptional customer experience.

To Conclude

It's time for insurance companies to say adieu to the era of outdated legacy content management systems. Modern content management systems are critical for insurance companies to efficiently process multiple forms of content, minimize operational risks, enhance collaboration and achieve ultimate productivity. These systems have become indispensable.

It’s well established that the digitization of the insurance industry is continuing and that insurers looking to stay competitive should integrate cloud-native solutions into their workflows. But how should an insurer measure the success of that new technology? What’s a good key performance indicator? How should you determine the return on that investment?

To measure the value of your investment in a cloud-native agency management system, you need to answer a simple question: What’s a minute worth? 

Too Many Clicks

One MGA built an ROI algorithm to predict what they’d save by automating processes and reducing their dependence on agents to complete repetitive manual tasks. Their modeling found that their manual processes were taking too long, requiring as many as 25 mouse clicks just to issue a single policy (not counting the clicks needed in their lead, submissions or quoting processes). The need to reenter information for every step of the process was taking too much time and resulted in errors and inaccuracies. The model revealed that customer and policy data was stored in too many separate applications and resulted in data silos. 

The model also revealed incredible time savings the MGA could realize if it were to eliminate these silos and connect applications. Doing this would reduce the number of clicks required to complete these routine tasks. For example, if clicks were reduced by 50%, that translated to 15 minutes of an agent’s time saved for every submission. Even more staggering, if clicks were reduced by 95%, that would enable agents to save almost 30 minutes for every single policy they issued.

To an enterprise-level insurance company, a minute is worth six or even seven figures. And for this particular MGA, with over 2.4 million submissions annually and more than 600,000 policies, the cost of those lost minutes and excessive clicks was impossible for them to ignore. Time really is money. 

What if the integration of applications allowed many steps in those workflows to be automated? By using a simulation model to measure the benefits of such a streamlining, this MGA was able to reduce the 25 clicks required to issue a policy down to just two. A full 20 minutes were shaved from their renewal process, and 25 minutes per quote. All those minutes add up to more than $65 million in savings per year. 

Further Benefits 

Of course, the benefits of a streamlined and open platform go beyond time saved and clicks reduced. By eliminating the need to enter the same information over and over again throughout the entire lead, quote and submission process, insurance organizations can drastically reduce the risk of human error, which can lead to delays and potential legal or compliance issues. Employee satisfaction, efficiency and performance increase, freeing your best talent to focus on the more complex tasks requiring human skill and insight.

An open platform that enables the interpolation of data also allows for the elimination of redundant, disparate systems. Organizations that leverage this type of platform can greatly reduce their tech stack, which saves money and improves efficiency. 

Enhanced customer experience is another key benefit. When an MGA’s front, middle and back offices are all drawing from the same, centralized repository of data, everyone has a more consistent experience, especially the customer. 

Today’s customers expect quick and seamless digital interactions, and that includes interactions with their insurance providers. Manual processes often lead to delays in policy issuance, claims processing, and policy changes, damaging the customer experience. Streamlining workflows enables self-service portals, online claims submissions and instant policy generation, providing customers with convenient and efficient services. Meeting those customer expectations can boost loyalty, renewals and positive word of mouth. 

Clearly, in the modern insurance industry, every minute counts.

Insurers lose billions annually due to unprecedented fraud. This article examines insurance fraud detection, comparing AI and human experts and showing how they can combine to improve the insurance industry.

Insurance Fraud Detection Challenges

Insurers struggle to detect and prevent fraud due to its variety. Some common types of fraud are:

• People stage accidents to file fraudulent insurance claims.
• People overstate damage.
• Identity thieves file fake claims using real policyholders' information.
• Doctors send fake bills to insurance companies.

Due to the volume and complexity of fraudulent claims, insurers struggle to detect and prevent fraud manually. 

AI and Machine Learning: A Solution for Insurance Fraud Detection

AI and machine learning systems can analyze massive data sets to find fraud trends and even detect and prevent fraud in real time. However, using AI and machine learning to detect fraud is difficult. The biggest obstacles are:

• Low data quality: The quality of data strongly affects AI and the accuracy of machine learning algorithms. Insurers must ensure accurate, complete and up-to-date data for optimal results.
• Bias: AI and machine learning systems can exhibit favoritism toward specific claims or individuals, leading to erroneous or unjust outcomes. Insurance companies have a responsibility to guarantee that their algorithms are unbiased.
• Privacy: AI and machine learning for insurance fraud detection raise privacy concerns because sensitive personal data may be evaluated. Insurers must follow data privacy laws to protect client privacy.

Despite these drawbacks, AI and machine learning for fraud detection have many benefits, including:

• Speed and accuracy: AI and machine learning algorithms can analyze massive amounts of data in real time, detecting fraud and clearing the handling of legitimate claims.
• Cost savings: Insurance companies can save billions of dollars in reimbursements and other expenses.

AI still requires human oversight to ensure accuracy and dependability, and it will likely continue to require such oversight.

The ability of artificial intelligence to detect fraud is hindered by both false positives and false negatives. These errors may occur if the AI algorithms are not calibrated properly or if they are based on data that is either incomplete or inaccurate. Another possibility is that the data used to train the algorithms is incorrect. Human oversight is needed.

Investigation and resolution of suspicious transactions are another important role for human oversight. AI is able to recognize patterns and anomalies that may point to fraudulent activity, but it is still up to humans to investigate and determine whether they are. 

The following table shows the key differences between AI and human investigators.

AI is a powerful ally against insurance fraud. But, while AI can quickly analyze data, human oversight is essential for accuracy. 

The aftermath of COVID-19 has ushered in events including the Great Resignation, mass layoffs and the hybridization of the workforce that challenge technology vendors’ talent strategies today. The fast-paced world of technology demands a steady stream of top talent, especially for vendors servicing the insurance industry as insurers harness AI, IoT, data analytics and other advanced technologies.

Consider that tech employment is expected to grow 13% between 2020 and 2023, according to the Bureau of Labor Statistics. With this in mind, it is critical for vendors to be strategic in 2023 and beyond in how they grow and retain valuable talent in a market rife with competition. 

A new research report from ReSource Pro examines how insurance tech vendors’ strategies are evolving in the competitive labor market. Insurance vendors are increasingly recognizing the critical role of talent retention in developing future leadership, productivity and innovation in a competitive talent market—unsurprising given that the cost to recruit and fill a tech role can run up to $30,000. 

Nearly 90% of vendors stated that retention is their top talent priority this year. This is a shift from 2022, when vendors’ top objective was attracting new talent. Within the past three years, vendors have implemented many initiatives to retain employees, including investments in employee training, well-being and compensation. For example, most vendors have placed greater priority on their business models, such as increasing the availability of remote and hybrid work. Vendors are also offering more opportunities for career development, supported by education/training and initiatives to redefine roles and responsibilities.

The findings of the research report highlight the critical role that tech talent plays in enabling carriers to navigate the complexity of the current digital landscape. Looking toward the future, insurance vendors must adjust and balance their priorities for professional development.

There is every reason to expect change to continue, with the rapid acceleration of technology and demographic changes, so vendors should plan to regularly review and modify their talent strategies to stay competitive and evolve their workplace to better meet employee expectations.

As technology continues to reshape industries, carriers are at a tipping point, where the integration of AI can revolutionize claims management.

We see AI moving beyond discrete tasks to workflow management and strategic advisory, helping business leaders make better decisions. These AI applications will likely result in greater fluidity between humans and machines, delivering personalization to consumers at scale. 

In a recent Forrester Best Practice Report, "Identify Top AI Opportunities in Property and Casualty Insurance," analysts provide a high-level operational framework for carriers to think about expanding how they leverage advanced AI. Forrester says leveraging AI to automate decision-making for specific touchpoints in the claims process can be a great place to start. 

We are observing this in our own work with insurers and see how AI can ultimately underpin the claims journey.

The Imperative of Automated Decision-Making

Claims management, while the heart of any insurance operation, still largely relies on manual procedures, resulting in prolonged processing times, human errors and, often, customer frustration.

AI is beginning to address these issues, automating vehicle damage estimates and offering real-time reinspection predictions, cutting cycle time, improving consumer experiences and using scarce labor resources more efficiently. By using AI algorithms to analyze incoming claims data, carriers quickly assess the validity of claims, detect potential fraud and determine suitable payouts. Policyholders receive the assistance they need precisely when they need it. 

See also: A Secret Weapon Against Claims Inflation

Moving Toward Deeper Integration of AI

AI in claims management will go far beyond automating specific decisions and routing them to the appropriate person, place or channel. AI is beginning to unify and transform each experience in the process, the goal of which is to create a streamlined, customer-centric journey that understands how humans and automation can work together. 

AI-powered chatbots and virtual assistants are already capable of guiding policyholders through the claims reporting process. These tools can provide real-time assistance, answer frequently asked questions and collect necessary information in a conversational manner. The tools reduce the friction often associated with the claims reporting process during a stressful time.

AI-driven image analysis can quickly assess damage and accident detail through submitted photos, videos, telematics and descriptions. It also enables seamless handoffs to casualty and subrogation claims managers.

Moreover, AI's predictive capabilities can forecast the likelihood of claims becoming contentious or litigious. By identifying potential points of dispute early on, insurers can initiate resolution processes, ensuring smoother interactions and fostering goodwill with policyholders.

Enhancing Customer Engagement and Satisfaction

AI isn't just about operational efficiency ––  it also lets insurers tailor their communication strategies to individual policyholders, enhancing engagement and satisfaction. 

For instance, AI algorithms can analyze historical customer data to anticipate a claimant's preferred communication channel and language and can detect the level of urgency. The insights allow for timely and relevant interactions that demonstrate empathy and understanding.

AI-powered data analysis can also provide insights into common pain points in the claims process, allowing for continuous improvement.

Advancement Driven by AI

Advancing AI is introducing discussion on new strategies for implementing robust data protection measures, ensuring the explainability of AI decisions and establishing clear channels for policyholders and claimants to voice their questions and concerns.

CCC’s 2023 AI Adoption Report revealed a 60% year-over-year increase in the application of advanced AI for claims processing, with more than 14 million unique claims having been processed through 2022 using a computer vision AI solution. 

The growth in AI use was across the resolution process. The number of claims processed using four or more AI applications has more than doubled, year-over year, proving AI’s capability to drive more end-to-end decisions across the entire claims management experience.

The Industry Is Ready

With increasing complexity in vehicle technology, labor shortages, inflation and more, managing insurance claims is quickly outpacing the capabilities of human cognition alone. And consumer expectations for their experience with insurance providers continue to rise. 

Future AI models will more thoroughly leverage existing and expanded connections across providers, creating more intelligent, straight-through experiences across every aspect of the claims and repair resolution process.

We’re already seeing this. Often, AI can auto-generate a complete line-level repair estimate in seconds. This was unheard of a few short years ago.

It’s incumbent on P&C insurance businesses to consider the potential of this technology.