BRAVE NEW WORLD | 5
Consolidate
data into a
single view
Discover
manual
processes
that can be
automated
Apply RPA
to the
identified
gaps
Imitate
human
behavior &
set rules
Munich Re is one of the world's leading providers of reinsurance, primary insurance, and
insurance-related risk solutions. In their whitepaper, "Augmented Underwriting: The Next
Generation of Underwriting", they discuss how automated underwriting is changing the life
insurance industry. It involves advanced analytics, predictive modeling, and machine learning
to dramatically transform the underwriting process.
"By using AI and machine learning techniques, insurers can, for example, identify
which data-points in the application process are irrelevant or simply redundant,
and which applications are now suitable for immediate straight-through
processing (STP). The system can assess risk profiles and, in certain
circumstances and with appropriate risk management, the number of questions
asked can be significantly reduced with little to no impact on risk taken on by
the life insurer. Certain parts of the application process may safely be eliminated
altogether. "
Automation is helping insurance companies achieve customer self-service with 24-hour/7-
days a week access. Software bots (short for robots) can now be designed to handle the
repetitive, tedious jobs while humans can address the more meaningful tasks -- like servicing
a customer with a complex problem.
The claims process also suffers from multiple time-consuming steps that can delay or halt a
customer claim. Issues include inaccurate data capture, manual processing errors, missing
documentation, and different data formats. By automating many of these tasks -- including
the digitization of documents -- helps to simplify the claims process and speed up the
system. And with the addition of predictive analytics, insurers can utilize historical data to
analyze events and potentially affect the outcome of claims.
And don't forget cost savings.
