As competition for sales and market share across the insurance industry intensifies, new technologies are driving innovative and cost-effective insurance services. At the same time, artificial intelligence (AI) and related technologies have disrupted processes across the insurance value chain—from product development, to sales, to underwriting, to pricing, to claims.
Data-driven insurance is an enterprise-wide business model that can generate a strategic advantage in the insurance ecosystem. Leveraging AI to analyze data can drive innovation and significantly transform insurance products and services.
Because implementing data-driven insurance and AI impacts the entire insurance ecosystem, including employees, partners and customers, successful implementation requires top-down/bottom-up leadership. If viewed from a narrow technological perspective rather than as a top-level management task, the transformational potential of AI will be overlooked.
This paper discusses several best practices that leaders should consider when introducing data-driven insurance including:
- Developing a vision
- Assessing feasibility
- Building an AI portfolio
- Creating and evaluating an AI acquisition strategy
- Choosing AI architecture
By transitioning to data-driven insurance, companies can compete effectively with both established and non-industry insurance providers and achieve a strategic advantage in an insurance ecosystem that’s facing complex challenges.