How enterprise AI has changed the competitive playing field for insurance and annuities
“AI high performers” gain an advantage over “adoption laggards.”
In a 2019 pre-pandemic global AI survey, consulting group McKinsey & Company identified two groups of businesses: AI high performers and adoption laggards. High performing executives who strategically implemented enterprise AI solutions like digital portals and underwriting technology reported revenue increases of more than ten percent in some cases, as well as significant cost reductions. Laggards lagged, creating a gap that would be difficult to overcome.
Insurance and annuities companies accelerate underwriting automation in the face of pandemic challenges.
COVID-19 compelled even slow starters in insurance and annuities to mobilize more aggressive digital transformation initiatives and accelerate underwriting automation. Insurance providers who had stalled on AI adoption in the past digitized quickly under duress while upgrading online channels to adapt to remote operations. The challenges posed by the pandemic led to insurance innovation that once more altered the playing field, and laggards who pivoted to adopt advanced underwriting technology are now back in the game.
More widespread AI adoption increases competition among insurance providers.
Technology of any kind simplifies operations and processes within an industry. The early iterations of new technologies are cost prohibitive, limiting competition to a handful of established pillars of industry.
However, over time, the automobile, the computer, the website all become affordable. They become mainstream. When that happens, barriers to entry get lower across all industries. Former marketers use automobiles to overturn the transportation industry a la Uber. Stay-at-home moms use laptops to start disruptive six-figure businesses.
And “two middle-aged guys who until 2015 knew almost nothing about the insurance business” launched Lemonade. The upstart “Millennial-friendly” insurance company uses artificial intelligence and a mobile app, among other insurance technologies, to transform the insurance experience for users. To say the company rocked the boat with their promise of more transparency and greater policyholder control would be an understatement.
What makes this sort of disruption possible in the insurance and annuities industry?
No-code AI technology, which “brings the power of AI to the masses,” according to a recent New York Times article. No-code technology ups the ante on effective automation and agile adaptability in a rapidly evolving digital ecosystem. It also demands that AI high performers capitalize on the technology advantage by:
Leveraging the expertise of claims adjusters, underwriters, and other employees who have been freed from repetitive tasks,
Leveraging data to personalize the customer experience at every level,
Leveraging AI learning to improve processes and identify novel opportunities for growth.
No-code lowers the barrier of entry into the insurance industry, but it doesn’t diminish the value of insurance professionals with decades of experience. If upstarts with little industry knowledge can make waves with new insurance innovations, established insurance providers with expertise have the potential to use the same technologies to deliver a flood of new revenue.
Leverage no-code underwriting technology to optimize your insurance operations.
MRS offers no-code insurance underwriting solutions to support insurance industry experts and AI high performers. From insurance application collection to claims processing automation, our proprietary platform customizes solutions to meet your specific needs. See how we can optimize your insurance operations. Request a demo today.