Reuters Events’ Insurance AI and Innovative Tech Summit Returns to Chicago in 2020

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Reuters Events’ Insurance AI and Innovative Tech Summit Returns to Chicago in 2020 – USAA, Nationwide, The Hartford AXA, Swiss Re, American Family and More Confirmed

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As insurance carriers look to technology to meet customer demands at scale, how carriers react to competition and rising customer expectations today will define their success tomorrow. From providing bespoke products, instant customer service and real-time risk monitoring, the likes of AI, machine learning and other innovative technologies are proving the only means through which insurance carriers can meet the high demands of consumers today.

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Likewise, managing the backend requirements of the technology and keeping data secure and monetizable requires a massive break from legacy process, both strategically and operationally. Evidence shows that insurance’s transformation is already well underway; according to Accenture’s Technology Vision 2019 survey of nearly 600 insurance industry executives, 96% reported the pace of innovation in their organizations has accelerated over the past three years due to emerging technologies.

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To provide insurance carriers with the tools, strategies and insights to navigate their digital journey, the Insurance AI and Innovative Tech Summit USA 2020 will return to Chicago for its seventh visit, May 12-13, 2020, Insurance Nexus have just announced. Through an agenda researched and written in collaboration with industry leaders, the summit will provide a unique experience for attendees, including hours of expert insight, real-world learning and opportunities to network with a host of leaders from across the North American insurance landscape.

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Download the event brochure today

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Already confirmed to speak at the summit include Jim Tyo (Chief Data Officer, Nationwide), Vineet Bansal (SVP, Chief Technology Officer, Swiss Re) and Will Dubyak (VP Analytics for Product Development and Innovation, USAA), as well as:

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  • Michael Fulton, AVP, IT Strategy & Innovation, Nationwide
  • Steve Klodzinski, Director, Data Science – Claims Casualty, Allstate
  • Cora Hall, AVP Group Benefits Marketing The Hartford
  • Mingju Sun, Director of Data Science Engineering, American Family Insurance
  • Justin Gress, Director of Strategic Operations, AXA

 

Download the event brochure today

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Attendees at Insurance AI and Innovative Tech Summit USA 2020 will also become part of North America’s largest insurance community, with over 500 C-level executives gathering to network, debate and learn from renowned industry experts. To give attendees more control over their own networking, Insurance AI and Innovative Tech Summit USA 2020 will also be utilizing the innovative Brella app, that allows attendees to set their own meetings and create valuable business networks that can be leveraged in future. Insurance AI and Innovative Tech Summit USA 2020 will also feature more interactivity than ever before; remote polling will gather the audience’s perspectives on pressing issues and attendees will be able to submit their own questions to our expert speakers using the Slido platform. With the agenda nearing completion and tickets now on sale, please find more information on the website: https://events.insurancenexus.com/analyticsusa/conference-speakers.php

Life Underwriting … in minutes!

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Groundbreaking innovation from eNoah iSolutions could transform the life insurance industry by providing underwriters with the ability to make informed decisions in minutes.

 

eNoah, a global leader in digital solutions, brings the speed that term life insurance has typically enjoyed to permanent insurance by unleashing the power of machine l earning, artificial intelligence, cognitive computing and predictive analytics.

 

eNoah challenges traditional models and adopts innovative tech for ways to speed up the underwriting

process and empower underwriters to make informed decisions that help place policies quickly, resulting in faster payout to brokerage general agents (BGAs), brokers and agents, and ensuring customer satisfaction that leads to repeat business with higher retention. These new advances have the huge potential to improve cycle time by several days and thereby speed up policy issuance.

 

In short, underwriters using eNoah’s software can run full medical history reports — including attending physician statements (APSs) — in about 10 to 15 minutes, rather than the days it typically takes.

 

That shorter wait time has more clients filling out permanent applications and thus handing more agents larger commissions; it also has carriers issuing a greater number of policies while saving time and money in the process. This ensures faster insurance coverage to applicants.

 

In the Q&A that follows, Manoj Sherman, eNoah’s senior vice president, shares an in-depth look at what makes eNoah’s platform eXtract Plus™ so game-changing for underwriting.

 

Q: What is the biggest challenge for insurance underwriting?

 

Manoj: The capacity to adapt to evolving market needs. Traditional insurance models are severely challenged by disruptive new technologies, and companies need to adopt new models of engagement to meet today’s customer expectations of ease of use and speed of delivery.

 

Insurance at large is one of the slowest sectors to adopt new technologies, as per industry surveys.

 

To survive in this highly competitive ecosystem, there is increasing pressure on underwriting to lower costs while making quick and accurate decisions. That’s essentially a herculean task, because the amount of data in medical histories that underwriters need to review keeps growing.

 

Those histories range from 100 to well over 1,000 pages each, and might include lab slips, medications, EKGs, clinic notes, follow-up notes, surgery procedures, X-rays and other documents.

 

This is a very laborious process as every page needs to be reviewed, case by case, to look for vital conditions that impact the decision. It can take anywhere from a few days to a week for a carrier to make an informed decision on a case.

 

Customers today don’t have the patience to wait that long anymore, even if it means accessing long-lasting coverage that they can use for retirement, loans and emergency cash access.

Creating Fast, Agile and Service-Driven Insurance, Hippo and AXA Insurance to Join Live Webinar

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LONDON, 22 NOVEMBER 2019: Insurance leaders to join Insurance Nexus to discuss strategies to successfully implement insurance technology, Wednesday, December 11, 10am EDT.

 

It is generally now accepted that for insurance, innovation is a ‘must-have’, rather than a luxury. To attract and retain consumers today, to remain competitive and efficient in business, Insurance companies are increasingly turning to the growing number of technological solutions on the market, such as AI, chatbots, automation and more.

 

However, investing in costly initiatives and deploying cutting-edge technology will always constitute a risk, even in the most benign of business environments. This is even more true in the context of squeezed profits, tightening regulations, and shrinking consumer trust. Overspends on expensive projects can quickly run into the millions, whilst operability issues with new technology can have serious financial and reputational consequences.

 

In the meantime, as long as the options available to consumers continue to grow, the average customer will not stop and wait for those who lag behind to catch up, if improved products and customer service are offered elsewhere. The emphasis is on insurance carriers to deliver (or better) the services and standards that consumers can receive from others, or risk drifting into irrelevancy.

 

To provide insurance carriers with actionable strategies to implement emerging technologies across the organization, Insurance Nexus is holding a live webinar, Fast, Agile, Service-Driven Insurance: Fuse Innovative Tech to Your Company DNA – AI, Chatbots, Automation and More, taking place Wednesday, December 11th, at 10am EDT. Moderator Christopher Frankland (Founder, InsurTech360.com) will be joined by AXA Insurance Director of Strategic Operations, Justin Gress and Hippo Insurance Chief Insurance Officer, Richard McCathron, to uncover how, with the right strategies in place, technology can transform an insurance carrier into a fast, service-driven organization.

 

Register today for this exclusive webinar and get actionable insights to develop your strategy including:

  • Discovering emerging technology’s true value: Leverage tech and transform your organization, from claims processing to risk management and streamlining of overall operations
  • Improving your profit margins and transform CX with automation: Learn how to deploy automation with emerging technologies such as ML and AI and gain business efficiencies
  • Innovation as a strategy to stay competitive: Hear how to achieve competitive advantage with innovation- improve data security, exchange data seamlessly, monitor customer behavior and reach a new generation of customer

Register for this webinar today – those who register will be sent the recordings, even if they cannot join live.

 

This webinar is being run in association with the upcoming Insurance AI and Innovative Tech USA Summit 2020, an event by Insurance Nexus, a Reuters Events Company. Expecting more than 500 attendees from across the North American insurance ecosystem, the Insurance AI and Innovative Tech USA Summit brings senior innovation and business unit executives to uncover the rewards of embedding technologies such as AI, IoT, blockchain and automation to create valuable, relevant insurance products and services and seamless experiences through the power of tech-enhanced operations. For more information, please visit the website or get in touch with a member of the Insurance Nexus team.

 

Contact:

Ira Sopic

Project Director

Insurance Nexus

T: + 44 (0) 207 422 4363

T: +1 800 814 3459 ext 4363

E: ira.sopic@insurancenexus.com

 

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About Insurance Nexus

Situated between London’s Silicon Roundabout and the City, Insurance Nexus is at the innovative heart of an industry undergoing significant disruption and innovation. Insurance Nexus is the central hub for insurance executives. Through in-depth industry analysis, targeted research, niche events and quality content, the team provides the industry with a platform to network, discuss, learn and shape the future of the insurance industry.

 

 

Issues and Solutions to Commission Accounting

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By Ken Leibow

Published in NAILBA Now Newsletter

November  2019

 

Commission Accounting Systems have been around since the mid-1980s. They are usually found as a standalone system, and having three main purposes:

  1. Commission Reconciliation (Did you get paid as expected?)
  2. Tracking Payables (Track out-of-house deals with top producers on modal premium)
  3. Know your score card (Report on your income by line of business, carrier, and top producers)

Current Issues
There are two challenges with commission accounting systems. The first challenge is setting up carrier commission schedules, assigning those contracts to agents and then building hierarchies. In the Life Brokerage General Agency (BGA) channel for example, the average BGA is writing business with 20 + carriers and each carrier has several Life and Annuity products. Each product has rules like commission banding by year (first year & renewals), banding by age, target and excess premium commission rates on UL products etc. Carriers offer BGAs several commission levels that a BGA can use for their hierarchy downlines. Setting up these commission schedules is a lot of manual work. Even if a system offers tools and resources to build and maintain these commission schedules, there is no process that validates they were even setup correctly.

 

The second challenge with commission accounting systems is to process commissions received on each case on modal premium. If a BGA, for example, writes a large block of business, then to manually process each commission statement is cost prohibitive. Therefore; a carrier’s commission data feed into a commission accounting system is critical. The problem is that even if the carrier uses a data standard, the commission data feeds are not consistent or complete from every carrier, making it difficult to accurately reconcile commissions.  Many distributors will still go to visit 20 + carrier websites or even lookup paper commission statements to verify they have been paid correctly.

 

Solutions
There are several solutions to the challenges of commission accounting systems. A carrier, for example, could electronically send their commission schedules in a data standard that could automatically update the distributor’s commission accounting system. This would eliminate all the manual setup of commission schedules for a distributor. Commission data aggregators could build a verification process that rejects bad or incomplete commission data files, thus only delivering clean data to a distributor.

 

A new innovative solution is that a carrier and distributor together could use Blockchain technology. The carrier commission schedules could be programmed into “Smart Contracts” that are used by both the carrier to calculate to pay commissions and used by the distributors commission accounting system to reconcile commissions. The commission schedules only need to be created once. The beauty of the Blockchain is that each party of a commission contract must approve the contract prior to it being available on a Blockchain for use. These parties connected to the contract essentially build an agent hierarchy and each participant in the hierarchy has a private key with access to the contract and the commission detail in the commission statement. This type of solution can offer privacy and security, thus enabling trust, accuracy and simplicity across the business.

 

 

Digital Insurance: Technologies and Strategies Driving Insurance into the Connected Age

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Mariana Dumont
Head of USA Operations
Insurance Nexus

 

The ability to accurately discern the past and predict the future based on nothing but data points and the experience of actuaries and adjusters has served the industry well up to now. Insurance is, after all, a multi-billion-dollar, truly global industry. While this remains the case, the landscape is now radically different to the past, thanks in part to the advent of the Internet of Things (IoT). The use of these technologies that collect, record and transmit live data has proliferated exponentially over the past decade, and for a data-reliant industry like insurance, the impact has already been profound.

 

They may already seem ubiquitous but estimates of how many IoT devices will connect our cars, homes, communities, medical services and work lives by the year 2020 range from 30 billion[i] to 50 billion[ii]. Whatever the precise number, this will generate (and already is) a huge amount of data to be analyzed and monetized.

 

This increase in the quality and quantity of available data is already producing some significant outcomes; the process of writing policies can now be far better informed by what is known about the risk level of an individual or entity, as opposed to simply what is known about the claims generated by an entire class of risk. Some carriers have already begun this transition; John Hancock, for example, announced in 2018 that all new life insurance policies must henceforth use digital fitness trackers to monitor policyholders[iii]. Using the high-quality, objective data derived from IoT, it is now possible to assess claims more accurately and efficiently, and in some cases, even prevent them from arising entirely.

 

“IoT is already enabling customers to avoid bad things happening to them. Some people call it prevention. I see it as empowerment of customers.” – Nick Ayrdon, Head of Strategy & Development at Aviva

 

In turn, this is changing how insurers interact with customers, both before and after a claim, with one executive predicting that that we are in fact “shifting from a claims-handling business to a claims prevention one”. As the value proposition of exchanging data for value becomes more concrete, it could become a strong pull-factor driving uptake of connected insurance products. And yet, already operating in an environment of squeezed profits, high regulation and low consumer trust, the industry is witnessing something of a perfect storm at present.

 

There is no question as to whether the global insurance industry is going to go digital, and most of the industry understands why it will. The real problem for most is how it should happen and creating an environment in which they can maximize the value of insurance technology. As Michael Lebor states, this is not simply a case of reorganizing a particular department or function: “In my opinion, IoT is not a product, it’s a paradigm shift, a completely different way for technologies to interact with each other. Devices are going to be talking to each other, there are going to be hubs, and we must leverage that throughout the entire lifecycle of our product, whether for distribution, or on-boarding customers, or using it for claims and first notice of claims. It’s not one product, it’s a holistic way of thinking.”

 

Any transformation of this nature will invariably lead to substantive changes in how insurance carriers operate internally and whereas digital insurance projects were generally siloed to innovation departments in the past, executives agree that is starting to change. While the survey found that only 14% of senior management teams were currently affected by the introduction of digital insurance, the most commonly cited reason was that initiatives had not yet reached the point where it had become necessary (the implication being that management will take a more active stance when projects have scaled sufficiently).

 

Similarly, American Family Business Development Manager, Shaun Wilson, suggests “until there are a lot of devices providing a lot of data about specific risks, the carrier is not going to have the insights about whether or not these devices mitigate risks to any level of significance. That’s the promise of this approach, but nobody has enough data yet to validate the hypothesis.” As carriers leverage connected technology more and the impact on the business deepens, however, we can expect to see greater top-down management and involvement from board level stakeholders[iv].

 

To provide a comprehensive overview of the progress and prospects of Connected Insurance, Insurance Nexus have produced the Connected Insurance Report, an in-depth study of the progress of insurance technology globally, today, and in the future.

 

As the industry begins to understand how it can exploit the possibilities of connected and digital insurance, the Connected Insurance Report has crystalized the concerns of those tasked with turning an unprecedented technological revolution into market-ready products. At first glance, one might assume that the ability to learn more about the risks they are insuring should allow both for policies to closely follow the risk over time, and secondly that the ability to gather more information about a claim will discourage fraud. The net result should therefore be greater profit for companies, and lower premiums for their customers.

 

At second glance, it is just as clear that the picture is much more complicated than that. As we talked to more and more executives, it became apparent that the industry is only just beginning to work through the practical problems it faces. Indeed, questions as basic as the best way to install a sensor in a building are still the subject of lively debate. Ultimately, the world of insurance may be next in line for the kind of creative destruction that the tsunami of digitisation had brought to IT, telecoms, media, retail, hospitality, manufacturing, financial and business services.

 

The Connected Insurance Report was researched and produced by Insurance Nexus in collaboration with the IoT Insurance Observatory. It is the first of its kind to conceive of insurance IoT holistically, as a paradigm shift necessitating changes in insurer business models, organisational structures and technology stacks. Insurance Nexus surveyed the experiences of more than 500 insurers and reinsurers to assess where they sit in the connected insurance market and to extract the challenges they face and their stories of success.

 

Along with a panel of 20 industry leaders who have been operating at the sharp end of the IoT revolution, Insurance Nexus looked at these hurdles and opportunities and pulled them apart to provide readers with the case studies with actionable insights to help guide decision-making as the industry tackles its own strategic milestones.

 

 

Tech infographic

 

[i] https://spectrum.ieee.org/tech-talk/telecom/internet/popular-internet-of-things-forecast-of-50-billion-devices-by-2020-is-outdated

[ii] https://www.accenture.com/gb-en/insight-insurance-internet-things

[iii] https://www.bbc.co.uk/news/technology-45590293

[iv] https://assets.kpmg/content/dam/kpmg/xx/pdf/2019/03/insurtech-trends-2019.pdf