Technology Continues to Revolutionize the Insurance Industry
December 7, 2016 | By Amit Tiwari
The insurance and reinsurance industries are awash with an enormous amount of data, much of which is not being utilized to improve the efficiency and profitability of business.
As custodians of such vast repositories of information, insurance companies have tremendous opportunities to harvest data and transform their businesses.
Although software will never replace the high-level skills that underwriters and brokers bring to the business, process improvements and smart deployment of technology can certainly help them do their jobs better. As one example, the Xceedance team applied a unique technology approach to assist an underwriting client in Australia struggling to cope with a surge in submissions from brokers. Experts at Xceedance partnered with the underwriters to develop an artificial intelligence platform which continuously learns the outputs from the underwriter’ actions. Every time they make a change and send a quote to a broker, the system captures and brings the information into the rating and pricing scheme for future use.
In another example, Xceedance used Google Maps to model industrial sites to provide underwriters with a much more granular understanding of the actual exposures in and around specific sites.
Using Google technology, Xceedance experts can map out an entire site then, using Keyhole Markup Language (KML), export the data and break the area into smaller, more manageable, sections. By dividing them into smaller grids, clients are able to ascertain, for example, that one has a boiler or furnace, while there might be different, lower value, risk in another section where materials are stored. By using technology in this way, insurers benefit from a much more nuanced insight into the actual risk they are underwriting, thus allowing them to price it more accurately whilst improving service levels for the insured.
Xceedance paves the way for insurers to take full advantage of the tremendous technological innovations in the market today. Those technologies are opening up ways for them to write risk in a more profitable way and to provide better value to their clients.
For more on insurance technology and business trends, read the EY industry outlook report.