Navigating the future of L&A: 6 insights from our "Data at the Core: Empowering Insurers" webinar
- août 23, 2023
In the ever-evolving landscape of the insurance industry, an unprecedented shift is underway, hurried by the surging tide of data and AI technologies. A staggering one trillion interconnected devices are predicted to come online by 2025, endowing carriers with additional insights into their clientele. This transformative wave promises novel product categories, personalized pricing structures and real-time service delivery. The advent of AI and open-source data ecosystems is poised to redefine commercial insurance products. Against this backdrop of transformative change, our recent webinar, "Data at the Core: Empowering Insurers," united industry experts to explore the pivotal role of data in the insurance industry.
Joined in this insightful discussion were our panelists Mike Hicks, CIO at Jackson Financial, and Dror Katzav, Co-founder and CEO of Atidot, alongside our moderator Jim Erickson, Market Research Analyst and former Editorial Director at Digital Insurance. Through our collective exploration of data's vital role, an array of takeaways emerged, signaling an era of dynamic transformation for the industry.
1. Embracing digital evolution: catalyzed by crisis
The pandemic-induced upheaval drove the industry onto a rapid digital trajectory, condensing years of progress into a mere few. As consumer interactions migrated predominantly online, digital channels became the primary conduits to engage with insurance providers. As Mike Hicks noted, "During that two-year time frame, the digital roadmap for the L&A industry fast-forwarded by five years." This seismic leap was fueled by AI advancements and vast reservoirs of data, enabling companies to forecast customer behavior, optimize sales and refine customer service. A shift towards influencing customer behavior has materialized, evident particularly through social media and behavioral analytics. This heralds the era of "digital nudges," enhancing customer engagement while prioritizing a personalized channel experience.
2. The dawn of proactive data use: a paradigm shift
The transformation from passive data repositories to active agents of change stands as a chief priority for today's insurers. Overcoming the barriers of siloed data is the first step towards harnessing data's potential to detect evolving customer journeys. Mike underscored the influence of AI tools like ChatGPT in fostering efficiency, marking a shift from a science fiction narrative to a tangible reality. Dror Katzav reinforced the significance of leveraging insurance-specific data and models to craft tailor-made customer solutions by saying, “Companies that have insurance-specific data and insurance-specific models have an advantage in building insurance-specific use cases. If an L&A insurer is looking to identify who is ready for an upsell, which products fit which customers, and what coverage is right for an individual customer’s needs, all of this tailored information is now possible.”
3. Navigating the trifecta: privacy, security and compliance
As data takes center stage, the trinity of privacy, security and compliance emerges as a formidable challenge. Striking a balance between harnessing data insight while adhering to regulations necessitates sensitivity. Dror highlighted the growing complexity of AI models, which inherently challenge transparency. The insurance landscape grapples with the contrast between focusing efforts on understanding and ethical compliance, while relying on AI models for predictive results. The industry is at a crossroads, with different sectors adopting distinct strategies to achieve this balance.
4. Taking cues from digital trailblazers: TikTok and Amazon
The playbook of data use and personalization finds its chief influencers in social media giants like TikTok and retail behemoths like Amazon. These platforms epitomize data-driven personalization, adeptly curating user experiences while wielding data to influence behavior. Mike commended the remarkable engagement rates achieved by these platforms, signaling an impending shift in the insurance arena. Drawing inspiration from the simplicity and efficacy of Amazon's online shopping experience, insurers are poised to streamline complex processes and offer unparalleled ease of interaction.
5. Embracing the future: a tapestry of data-driven possibilities
The horizon calls L&A insurers toward a future defined by data-driven ecosystems, a realm where AI models and personalization reign supreme. The pivotal role of APIs in interlinking experiences across companies can't be overstated. The critical imperative for insurers is to forge partnerships that amplify customer engagement, transform data into proactive insights and render customer interactions seamless. This drive towards simplification embodies the essence of insurer-customer interaction.
6. From complexity to simplicity: looking to the future
As the industry charts an uncertain course, the theme of simplicity emerges as its guiding star. The rapid pace of change makes predicting the future a Herculean task, but Mike envisions an industry transformed into a data-driven landscape. The combination of AI models, hyper-personalization and customer-centric principles seems poised to bridge the gap between consumer intent and action. Embodying this spirit of transformation, Dror envisions an industry where data, automation, smarter models and processes converge to facilitate decisive action.
After observing the behaviors and attitudes of my son and his friends, I recognize that the younger generation has a low tolerance for disappointing customer experiences. I foresee a future where insurers traverse complex technologies on the back end to deliver simple experiences to their policyholders on the front end.
A path forward: centering data at the core
The curtain rises on a new era for the insurance industry, one propelled by the power of data and AI. Our "Data at the Core: Empowering Insurers" webinar illuminated the path forward, guiding insurers towards a future defined by innovation, personalization and data-driven excellence. As we embark on this transformative journey, the core tenet remains: the future of L&A insurance relies on our ability to embrace data, adapt to change, and usher in an era of seamless simplicity for our policyholders.
