KPMG: a guide to Intelligent Automation implementation in insurance

Insurers need to think about Intelligent Automation (AI) not as a technology implementation, but as an end-to-end business transformation that will impact the business model, operating model and ecosystem, states a recent report launched by KPMG, "The Automated Insurer: Next steps on the journey to intelligent automation."

Operating in a challenging environment, insurers are facing an increasing pressure on multiple fronts, from an avalanche of new technologies and more demanding consumers to the new regulatory features etc. AI technologies promise a radical shift to the insurance value chain, as well as the opportunity to revolutionize the way insurers do business, responding to the market pressures, says the consultancy, defining IA as "a combination of multiple automation technologies, such as Robotic Process Automation (RPA), machine learning and cognitive technologies, used together to solve complex business issues in pursuit of organizational goals."

While IA has become an undisputed "must", it is of utmost importance that insurers choose the right path to automation. One of the first things to be taken into consideration is that IA delivers value far beyond cost savings, enabling insurers to achieve a significant improvement in quality, auditability, employee satisfaction etc. Thus, CEO's must acknowledge that IA is transformational and far beyond being just an IT issue. Technology should be understood on a large scale within each organization and assumed as the cultural reality of the future.

KPMG suggests four lines of action insurers can take to prepare their enterprises to fully benefit from the opportunities of intelligent automation:

  1. Start small, but think big. Even if implementing small projects may be more affordable and quickly rewarding, "piecemeal efforts focused on niche tasks will fail to move the needle over the ling term," the report writes. Thus, any automation project should be approached with scale in mind, as well as with a rather clear idea on how to get successful deployments into more areas of the company faster.
  2. Determine the size and scale. Clearly planning stages is the second important step, so that starting from minimum-viable product to gradually reach a more holistic approach.
  3. Determine the operating model. IA implementation should be seen as an end-to-end process of strategic transformation, with its own proper governance structure to ensure coherence and the process' fluidity and avoid redundant operations.
  4. Assess longer-term impacts to people and process. Any implementation of automation will impact on how jobs across the enterprise work. Implementation teams need to be focused on how end users' day-to-day duties will be impacted by the new technology and prepare employees for the changes, both in professional and cultural terms.
Read the full versions of the KPMG's report "The Automated Insurer: Next steps on the journey to intelligent automation" here https://advisory.kpmg.us/content/dam/advisory/en/pdfs/automated-insurer.pdf

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

5 basic steps to build a robust cyber security system, according Zurich Insurance

Alike any journey which, as long as it might be, begins always with a first step, developing a good cybersecurity program, as complex as this might become, begins with a number of simple, basic actions. In fact, building the cyber resilience of a company is a real journey, starting from building a culture of awareness, going through adopting a mindset of resilience so that in the end, besides having in place a business continuity plan, a disaster recovery or incident response, but also practice it on a regular basis so that it becomes a "second nature".

2019-03-20

Mistakes App Developers Should Avoid

by Rilind ELEZAJ
In this techno savvy era, a smart device has become the most important instrument that performs numerous tasks in the age we are living in. Our transition and full integration of mobile technology shows that it is to here to stay and evolve.

2018-08-09

Tech-driven insurance solutions to help bridge the USD 180 billion protection gap

2017 was an extreme year for natural disasters, with total losses from natural and man-made disasters expected to amount to USD 306 billion - up from USD 187 billion in 2016. The recent disasters draw attention to the enormous gap between what's insured, and what's not - we call this the protection gap, reads an analysis published by Swiss Re as part World Economic Forum Annual Meeting.

2018-02-01

Can InsureTech survive in the GDPR era?

Insurers must be cautious in using the latest AI technologies, as GDPR introduces a series of obligations for the controllers, aimed at safeguarding the rights and freedoms of data subject. In the following article, we will address the most significant risks that the use of such technologies pose from the perspective of data protection.

2017-12-14

Insurance digitalization: how to avoid disapointment?

Price pressure is the biggest barrier to revenue growth, said almost half of the 46 global insurers interviewed by Simon-Kucher & Partners for the 2017 Global Pricing and Sales Study. A third of them also stated that most planned price increases are slashed or not implemented at all.

2017-11-23

How technology impacts the insurance sector

Rather than merely adding value to the insurance sector, technology and technical innovations are now determining its very growth and evolution. The last few years have seen mobile devices, GPS functionality and social media engagement impact hugely as to how insurance claims are processed by companies and policies assessed by insurance agents. Analysis of data and the value of legitimate customer interactions is more important than ever and have helped insurance companies to maximize profits while keeping the customers happy.

2017-08-17

ON THE MOVE

Bulgaria: Boiko ATANASSOV appointed as FSC's head

The Parliament of the Republic of Bulgaria appointed Boiko ATANASSOV as Chairperson of the Financial Supervision Commission (FSC) on March 15, with 134 votes in favour, none opposed or abstained.

21.03.2019

TOP EVENT

Climate and cyber: two Cs with catastrophic potential and the insurance business - under debate in Vienna, on April 9

10 years after its inception, the Romanian mandatory dwelling insurance system has progressed and PAID, the pool underwriting and managing the mandatory policies is a strong and financially sound institution. "We are currently managing a reinsurance program worth EUR 920 million, with a pool of excellent reinsurers, more than half of them rated AA+, while the company's solvency rate is of 220%," recently stated Nicoleta RADU, CEO, PAID.

21.03.2019

Conclusions: TBILISI - the first Georgian International Insurance Conference

The first Georgian International Insurance Conference took place on 14 March 2019. The event put under scrutiny the current status and the future development perspectives of the local market, in an attempt of identifying the main growth opportunities. The forthcoming launch of the mandatory MTPL system was the most important topic on the agenda, as this new line of business has the potential to provide for a significant growth, but also to become a market disruptor.

14.03.2019

See all