According to Forrester, AI investment grew 300 percent from 2016 to 2017. As for next year (from 2017 to 2018), a Narrative Science survey said the number of enterprises using AI is going to climb from 38 percent to 62 percent.
However, there are instances where AI just isn't the tool for the job. Forrester said that sometimes there's no business case for it (42 percent), its usefulness is unclear (39 percent), or it doesn't have the capability for a specific task (33 percent).
In other situations, the case for AI is obvious, but the business in question simply doesn't have the data management platform to support it (29 percent). In these cases, those businesses that choose to modernize their platform are opening the door to AI, positioning themselves to start leveraging its benefits.
How about AI in insurance?
Until recently, one of the sub-sectors of financial services that has been somewhat outside of the AI trend has been property & casualty insurance. That is now beginning to change according to insurtech thought leaders Chris Bishko and Pearl Chan.
Potential applications extend across the insurance chain: product development, customer acquisition, underwriting, claims, account management and renewals.
For example, the startup Zendrive uses smartphone sensors to discourage drivers from using their device behind the wheel, an important risk factor in auto lines. The chatbot startup Lemonade uses AI to provide "instant home insurance." The analytics startup Cyence uses AI to quantify risk for cyber security policies. And the startup Captricity uses machine learning to digitize handwritten records in any line.
As we reported earlier this year, AI-powered chatbots enable payment collection, cross-selling and claims service in most venues including Facebook Messenger, Snapchat and Skype.
First to the future
As Marc Benioff, CEO of Salesforce says, “As a company you need to get to the future first, ahead of your customers, and be ready to greet them when they arrive.” At the Dreamforce 2017 conference in November, Benioff spoke of the “fourth industrial revolution,” in which intelligence is at the center of everything. In this age, AI steals the spotlight providing data about every aspect of customers’ buying journey and ongoing experience.
Insurance is an industry notorious for its resistance to change. While other industries have, by degrees, evolved with the times, insurance has held out against innovation. We have not “gotten to the future first.”
Interestingly enough, that's why we're anticipating so much change now. Because insurance has moved so much more slowly than other sectors, it has the greatest distance to catch up: i.e., the greatest potential for improvement.
While consumer adoption may admittedly take some time, insurers who update their legacy policy administration systems; deploy, test and fine-tune AI capabilities; and get to the future first will reap significant benefits. Will you be among them?
The FedNat Insured Web is a great tool for our insureds!
They like having a centralized location to view policy info, make payments, upload policy documents, and elect to become paperless to receive a discount.
The insureds also can file a First Notice of Loss for a claim and access exiting claim info. Silvervine recently enhanced the site which allows insureds to upload policy documents directly to their policy. The uploaded docs go directly into our workflows and save a lot of manual effort on our part.
From my visits with agents, the agents appreciate the app for the amount of time saved on having to download and attach photos directly to the policy.
The app can also reduce the amount of staff required for a busy office to fulfill underwriting requests for photos.
When training agents they are amazed at how quickly the photos attach directly to the policy. After taking photos using the app and before they make it back to their desk, the photo is already attached to the policy. They also like the ability to attach additional photos for pre-existing damage.
Customer Service is seeing an improvement with retention as the text message definitely triggers phone calls from insureds to make payments.
The insureds love the fact that we notify them on their phones because they state that sometimes they don’t receive their mail for various reasons.
The insureds are paying more attention to the texts then to their actual mail. We try to set all of our customers up on that option if we notice that they are not currently enrolled, as it builds great customer relations as well as retention.
As a company we have adopted the use of Policy Scan for all our policies, and our agents have adopted the use of the app as well.
Not only is it easy to use, there is also no more worrying about losing photos, having to store photos or photos being attached to the wrong policy.
With Policy Scan we have increased efficiency in our workflow and reduced our exposure on the risk.
Silvervine’s core administration solutions easily handles multiple carriers within multiple states, including accounting, payment processing, immediate policy issuance and endorsements.
What started out writing one product, one line in one state has now grown into mulitple products, multiple lines and writing in multiple states. We have over $95 million in annualized premium in-force and we expect to grow by 20% during the next year all serviced by Silvervine.
Silvervine was our insurance software system of choice when we started the company in 2006. Silvervine enabled us to begin business within a few months of licensing the company. Today, we are one of the top 20 homeowner’s writers in Texas and SIlvervine’s solutions have been an integral part of our success.