Last week, Vidado attended the Silicon Valley Insurance Accelerators (SVIA) Insurance Disrupted, Disruptive Big Data, Analytics & AI Strategies conference.
The SVIA team put together an impressive speaker group consisting of executives from leading insurers including AIG, XL, and MunichRe, and a strong presence of business leaders from technology companies ranging from Vidado and Orbital Insight to large multinationals like Symantec.
There were a number of key takeaways from both the insurers and technology companies, all highlighting the tremendous potential for innovation, growth, and efficiencies driven by rapid advancements in cutting edge technologies powered by machine learning, analytics, and AI.
Three key learnings for insurers
- Commercial insurance is ripe for the picking: There is a tremendous amount of potential to disrupt the commercial insurance space with technology and insurers are looking for startups to begin to innovate on the commercial end of the business after the wave of investment that has poured into personal lines insurance. The personal lines business has largely dominated the focus of startups (check out the Insurance Startups Market Ecosystem Map from Greylock), and there is massive untapped potential for technologies focused on improving the way commercial business is done from brokers to claims.
- The stakes in insurance are HUGE and claims is a BIG opportunity: Anthony Lyons, EVP Client Centric Analytics at AIG Global Casualty stated that the company pays out $130M in claims every business day. The potential to reduce fraud, improve efficiency, and cut down on cycle time will be critical areas where technology can help insurers business. XL Innovate Managing Director Tom Hutton confirmed the sentiment, noting that the majority of costs come from claims, and that often times insurers like XL are paying out 40-60% of their market cap in claims. For a $10B dollar insurer, the cost reduction potential is significant.
- AI, machine learning, and analytics technologies are poised for impact: Ash Damle, CEO and Founder of Lumiata, a company which provides AI-powered analytics for risk-bearing organizations, shared that the AI market in healthcare alone will be $6B by 2020, saving over $2B in costs. Orbital Insight, a company which uses advanced image processing and data science to monitor physical environments, is now being able to assess the roofing conditions of houses, both reducing the need for manual intervention by assessors, and pinpoint property which might present higher risk. Overall, there is a tremendous amount of opportunity for these technologies to provide impact across the value chain, from distribution and sales, to security, claims, and much more.
Vidado’s Brian Cox: To truly go digital, insurers must embrace paper
In addition to the great lineup of speakers, Vidado’s Director of Industry Sales, Brian Cox, took the stage to share what he’s seeing in the market at over 12 of the largest US insurers that we do business with. His talk, The Disruptive Impact of Modern Technologies on Operational Processes and Organizational Strategies in Insurance, was focused on a problem close to home for many of the audience.
Despite the proliferation of cutting-edge technologies available to insurers, paper is still an operational constant in insurance, and organizations still rely on outdated processes and services including manual data entry, legacy OCR, and BPOs to process billions of documents per year.
Brian highlighted a crucial dichotomy the industry faces; everyone from customer to carrier want to improve the customer experience, but paper is still prevalent in insurance, and the industry is not ready to make the switch to going completely digital.
In order to go digital, insurers need to be able to automate the processing of their incoming customer paper forms and documents, from new business and service forms to claims, while reducing the reliance on manual data entry to cut costs and improve efficiency. Now, over 50% of the Top 20 US insurers have begun to use the combination of Vidado machine-learning (AI) technology to process handwritten data, which was impossible to do without manual intervention.
Insurers are now able to use cutting-edge technology to combat legacy processes that remain constant despite today’s evolving landscape. You can find Brian’s full presentation deck and many others on our Slideshare page. Visit our Insurance Offerings Page to learn more about how your organization can leverage Vidado’s solution, and let us know if you’d like to schedule a customized demo on your company’s forms.