Expert insights on insurance digitalization

Can Insurance Employ AI That Is Both Powerful and Fair? Artificial intelligence is rapidly reshaping how insurance companies process claims, detect fraud, and manage risk. But to be effective and fair, AI must be developed and deployed with careful attention to data quality, model transparency, and ethical use. AI systems are only as good as the data they are trained on, and if that data is biased or incomplete, the outcomes will reflect and even amplify those problems. In a conversation filled with lived experience, John Standish⁠, Co-Founder and Chief Innovation and Compliance Officer at Charlee.ai, laid out a powerful and pragmatic vision for how artificial intelligence must be built for the insurance industry. Having transitioned from a long and substantial career in law enforcement and insurance fraud investigations to the world of InsurTech, John offers rare dual expertise: a regulator’s scrutiny and a technologist’s curiosity. His perspectives cut through hype and buzzwords and land squarely in the domain of real-world consequences, compliance, and human-centered innovation. John underscored the importance of domain-specific AI models that are trained with relevant, clean, and unbiased data. He cautioned against using generic models and stressed the need for explainability, transparency, and regulatory compliance in all AI-driven decisions. The conversation illuminated a crucial point: AI isn’t a magic fix for outdated processes—it’s a force multiplier for organizations willing to rethink their foundational data strategies and workflows. For the insurance industry, embracing this challenge is not just a matter of innovation, but of survival in a rapidly changing digital landscape. #technology #innovation #frauddetection #claimsmanagement #artificialintelligence #insurance #insurtech Look for the full YouTube episode in the comments.

I’ve seen many insurers experimenting with AI - but only a few are realizing transformational value. In our latest report, which I had the pleasure of co-authoring, we examine what truly separates AI leaders from the rest. The results were striking: 📈 Over the past five years, insurers leading in AI achieved 6.1x the total shareholder returns of AI laggards. This is more than a technology advantage, it’s a strategic imperative. So, what sets the AI leaders apart? ✅ They take an enterprise-wide approach to AI—not isolated pilots. ✅ They rewire their core processes: underwriting, claims, distribution, and customer service. ✅ They build a modern capabilities stack—scalable infrastructure, high-quality data, and reusable components. ✅ They invest just as much in change management and workforce enablement as they do in technology. ✅ They view gen AI and agentic AI not just as tools, but as differentiators capable of reasoning, empathy, and creativity. AI is becoming the defining force of competitive advantage in insurance, and the gap between leaders and laggards is widening fast. 📘 Explore our perspective here: https://lnkd.in/ekaV_Jyy #Insurance #AILeadership #GenAI #DigitalTransformation #FutureOfInsurance #AgenticAI #InsureTech #McKinseyInsight #FinancialServices

The industry with 6x the TSR vs. the average 2–3× is… insurance. Insurers that lead with AI aren’t just keeping pace, they’re creating 6× the shareholder returns of laggards. The reason? Making bold choices about where to build, buy, or partner ... and rewiring the business, not just dabbling in pilots. Often cast as risk-averse, insurance shows the opposite here: when insurers center strategy with AI, the rewards are exponential. Leaders have created six times the shareholder returns of laggards over the past five years. My colleague Tanguy Catlin has spent years guiding insurance and financial-services clients through transformation. He and our insurance colleagues highlight that, to win, insurers can double down on four of the six rewired components: (1) Business-led roadmap: tie AI directly to value creation, not tech curiosity. (2) Operating model at scale: embed AI into how the business runs, not just in pilots. (3) Flexible AI stack: technology designed for speed, modularity, and distributed innovation. (4) Adoption & change management: because even the best AI fails without human adoption. Here’s what outcomes look like for insurers who get serious: domain-level transformation has already yielded a 10-20% lift in new agent success and sales conversion, 10-15% growth in premiums, 20-40% lower cost to onboard customers, and 3-5% improvement in claims accuracy. These aren’t incremental tweaks, they move core levers that impact the top and bottom line. Full article linked below and authored by Nick Milinkovich, Sid Kamath, Tanguy Catlin, and Violet Chung, with Pranav Jain and Ramzi Elias. https://lnkd.in/df2GXpuq

In a recent discussion with Priscilla Ng, Prudential plc’s Group Chief Customer and Marketing Officer, we delved into Prudential’s shift towards customer-centricity. This conversation underscored the seamless integration of digital innovation and the essential human touch in the insurance sector.   Here are five key insights from our discussion applicable across industries:   🔹Strategic Integration of AI and Human Insight: Prudential is not just using AI to streamline processes; they are using it to significantly enhance personalization and customer service. From simplifying underwriting to transforming service at customer touchpoints like call centers, AI is proving to be transformative. How can other industries use AI not merely for efficiency but as a catalyst for customer connection?   🔹Empowering Employees: In the journey of digital transformation, the role of technology is as crucial as the people behind it. Priscilla emphasized the importance of equipping over 15,000 employees with the necessary mindset, skills, and tools to excel in a digitally evolving landscape. What strategies can companies implement to ensure their teams thrive amidst technological change?   🔹Balanced Approach to Digital and Human Interaction: Despite extensive technological integration, the human element remains critical at Prudential. Their approach ensures that digital enhancements support rather than replace human interactions, thereby strengthening customer relationships. How can businesses maintain this balance to enhance, not undermine, human connections?   🔹Navigating Challenges in Transformation: Adapting to digital transformation comes with challenges, from aligning large teams with new strategies to continuously adapting to emerging technologies. Priscilla shared that a steadfast focus on customer-centricity is essential for navigating these challenges. How can other organizations keep their focus on customer needs while managing transformation complexities?   🔹Continuous Learning and Adaptation: A crucial aspect of Prudential’s transformation is fostering an environment of continuous learning and adaptation. This involves training in new technologies and developing a deeper understanding of customer needs and behaviors. How can continuous learning be structured to keep pace with rapid technological advancements and evolving customer expectations?   This dialogue is part of McKinsey’s ongoing series exploring how leaders steer their companies through transformations. Stay tuned for more insights shaping today’s business landscape. Full interview: https://lnkd.in/gtjphW2s   #Leadership #DigitalTransformation #CustomerCentricity #InsuranceIndustry #AI

Recording with Citi's Treasury and Trade Solutions / Insurance team this week opened my eyes to a big shift happening in financial services. Traditional insurance is getting squeezed by two forces: 1. New tech-enabled entrants (insurtechs, big tech players)   2. Customer expectations shaped by Amazon-level experiences Kamiel Bouw from Citi shared this insight: "Treasury really is a horizontal function — they need to engage with enterprise-wide digital transformation." What's fascinating: Insurance treasury functions are evolving from back-office settlement roles to innovation leaders across their organizations. The shift in payments: - Premium collections moving from checks to QR codes - Claims payments going from manual processes to instant digital transfers - Entire reconciliation workflows getting automated through virtual accounts Real example: Large UK P&C insurer streamlined processes across direct channels, agent channels, and broker channels using virtual account structures. Result: automated reconciliation, reduced risk, enhanced customer experience. The pattern I'm seeing: Industries we think of as "traditional" are often the most aggressive adopters of new payment technologies. Sometimes the biggest innovations happen in the least expected places. #insurance #payments #treasury #innovation #fintech

🚀 Excited to unveil my latest whitepaper: "𝐄𝐯𝐨𝐥𝐮𝐭𝐢𝐨𝐧, 𝐧𝐨𝐭 𝐫𝐞𝐯𝐨𝐥𝐮𝐭𝐢𝐨𝐧. 𝐇𝐨𝐰 𝐢𝐧𝐬𝐮𝐫𝐞𝐫𝐬 𝐜𝐚𝐧 𝐭𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦 𝐰𝐢𝐭𝐡𝐨𝐮𝐭 𝐫𝐨𝐜𝐤𝐢𝐧𝐠 𝐭𝐡𝐞 𝐛𝐨𝐚𝐭 𝐭𝐨𝐨 𝐦𝐮𝐜𝐡" 🚀 In an era where digital innovation is not just an advantage but a necessity, the insurance industry stands at a pivotal crossroads. This comprehensive whitepaper delves into the heart of digital transformation within the insurance sector, offering a detailed exploration of the challenges, strategies, and technological advancements reshaping this age-old industry. 🔍 𝐖𝐡𝐚𝐭'𝐬 𝐈𝐧𝐬𝐢𝐝𝐞? A deep dive into the concept of a 𝐭𝐰𝐨-𝐬𝐩𝐞𝐞𝐝 𝐨𝐫𝐠𝐚𝐧𝐢𝐳𝐚𝐭𝐢𝐨𝐧, offering a balanced approach to innovation and operational stability. Insightful analysis of the "Digital Transformation Dilemma" facing insurers today, including legacy system constraints, regulatory complexities, and how to overcome them. Strategies for identifying high-value transformation opportunities, focusing on areas like underwriting and claims processing for maximum impact. The transformative potential of AI and claimsmManagementfFilters in revolutionizing processes, enhancing efficiency, and combating fraud. Practical steps and real-world applications of 𝐒𝐮𝐫𝐠𝐢𝐜𝐚𝐥 𝐏𝐫𝐨𝐜𝐞𝐬𝐬 𝐎𝐩𝐭𝐢𝐦𝐢𝐳𝐚𝐭𝐢𝐨𝐧, showcasing how targeted, incremental innovations can lead to significant operational improvements. 💡 𝐖𝐡𝐲 𝐑𝐞𝐚𝐝 𝐈𝐭? Whether you're a C-suite executive, a digital transformation officer, or an industry professional, this whitepaper provides actionable insights and a strategic framework to empower your organization to embrace change, optimize operations, and thrive in the digital age. Join me on this journey to unlock the full potential of digital transformation in the insurance industry. Download your copy today and pave the way for a future where innovation drives success. #DigitalTransformation #InsuranceIndustry #Innovation #AI #ClaimsManagement #OperationalExcellence #StrategicRoadmap #InsurTech #FutureOfWork #TechnologyInInsurance #futureofinsurance

AI is just the tip of the iceberg. These tech trends are set to shake up insurance, and MunichRE just mapped them all ! Each year, Munich Re publishes a comprehensive report exploring how various technology trends are shaping the insurance industry. Structured around five key pillars, including, of course, artificial intelligence, the report identifies the trends most relevant from an insurance perspective. It also offers guidance on how incumbents should respond, categorizing each trend on a spectrum from “wait and see” to “act now.” This year’s edition includes 11 new trends not covered in the previous report. Each is analyzed in terms of its impact across the insurance value chain, supported by insights from experts in the field. No line of business is untouched—whether you’re focused on commercial, personal, or specialty lines, there’s something here for you. One section that particularly stood out to me is the deep dive on data standardization (page 16). In my view, data remains one of the industry's biggest challenges. If you follow my posts, you’ll know we see “emerging risks” as a major catalyst for the next wave of insurance innovation. These types of risks (unlike commoditized ones such as auto, home, or health) typically lack historical data. That makes access to new data sources and the ability to derive insights from them absolutely critical. Which creates a significant opportunity for startups: whether as tech-enabled MGAs embedding data capabilities into their operations, or B2B players offering these skills to traditional insurers. In both cases, data-native approaches are poised to play a key role in reshaping the future of insurance. #insurance #insurtech #startup (BestOfH1)

Is the innovation-hype over in the #insurance industry? Do you also perceive a more and more slowdown in #innovation activities? What happened? 🚀Evidence of slowdown in investment activity - A recent survey by Gartner found that 60% of insurance executives expect to decrease their investment in AI in 2024. - The number of M&A deals in the insurance industry declined since 2023. - Several insurance companies have announced plans to cut costs in 2024ff. 📊What are key investment trends - AI and machine learning: AI and machine learning are being used to automate tasks, improve decision-making, and develop new products and services. For example, insurers are using AI to automate claims processing, detect fraud, and personalize customer interactions. - Data analytics: Data analytics is being used to gain insights into customer behavior, identify risks, and develop new pricing models. Insurers are also using data analytics to improve underwriting and claims processing. - Customer-centric solutions: Insurers are investing in customer-centric solutions to improve the customer experience. This includes developing digital channels, providing personalized advice, and offering value-added services. 💡What are key activity patterns by insurance company Swiss Re has been actively investing in AI and data analytics. The company has also formed partnerships with technology companies to develop new solutions. Munich Re has been investing in AI and machine learning to improve underwriting and claims processing. The company has also been developing new digital channels to improve the customer experience. AXA has been investing in customer-centric solutions, such as personalized advice and value-added services. The company has also been developing new digital channels to improve the customer experience. Allianz has been investing in AI and data analytics to improve underwriting and claims processing. The company has also been developing new products and services using AI and machine learning. Zurich Insurance has been investing in data analytics to improve risk assessment and pricing. The company has also been developing new digital channels to improve the customer experience. Conclusion It is essential for insurance companies to continue investing in AI, data analytics, and customer-centric solutions. These technologies are essential for the future of the industry. A slowdown in investment activity could have a negative impact on the industry and could lead to a decline in customer satisfaction. 👉 SPEEDA Edge tracks key innovation industry activities: https://sp-edge.com/ #insuranceinnovation #insurtech #AI #dataanalytics #customerexperience #digitaltransformation #investments #futureofinsurance #insurancetechnology  

In an industry often defined by caution, transformation of insurance claims is a bold leap toward becoming a true competitive differentiator. Traditionally, claims departments were isolated, focused on technical expertise rather than strategic impact. But I think, in today’s customer-first world, this approach is limiting, especially as claims are a “moment of truth” where an insurer’s promise is tested. Unlocking this function’s potential means moving beyond processing efficiency. It’s about aligning the entire claims process with the organization’s mission, customer needs, and advanced technology. We might very well be headed to a future where claims function would not only be powered by AI and data analytics but would be designed to predict and meet client expectations even before claims occur. This might be achievable, but not without tackling the enduring challenge of legacy systems, where fragmented data and siloed departments hinder progress. For real transformation, insurers must adopt an integrated, data driven architecture that connects claims with underwriting, actuarial insights, and finance. This would unlock vast possibilities: precise risk profiling, personalized coverage, and even proactive risk mitigation. Insurers worldwide are beginning to see claims not as an endpoint but as a foundational element of customer relationships and loyalty. Embracing open insurance principles,where data sharing across platforms empowers seamless, personalized customer experiences is vital . It’s not just about technology but about rethinking values: Do we aim to simply pay claims, or to stand by clients in their most vulnerable moments? Regulators, too, are watching closely, pushing insurers to create transparent, customer-aligned processes. This transformation must go beyond adopting AI or automating processes; it’s about reimagining claims from the ground up. Those who embrace this journey will redefine industry standards and reshape what customers expect from their insurers. Refer attached report for detailed insights.⬇️ #InsuranceInnovation #ClaimsTransformation #InsurTech #CustomerExperience #Insurance #OpenInsurance #InsuranceEvolution #LinkedIn

🚀 New Episode Alert! 🚀 🎙️ Insurance Unplugged dives deep into the AI revolution in insurance with our latest episode! Join Lisa Wardlaw as she interviews Anil Vasagiri SVP and Head of Property Solutions at Swiss Re, exploring the fascinating world of AI and its potential to transform the insurance industry. They tackle the promising areas of extreme event modeling, behavioral sciences, and generative AI, and discuss the integration with cutting-edge technologies like IoT, blockchain, and federated learning. Key Takeaways: 🤖 AI holds transformative potential for the insurance sector, especially in extreme event modeling and behavioral sciences. 🛠️ Effective integration of AI with technologies like IoT and blockchain necessitates a reevaluation of tech stacks and data strategies. 📊 The importance of data quality cannot be understated—it's the backbone of reliable AI insights. 🧪 Embrace experimentation and be ready to innovate with new tech and methodologies. 📈 Focus on the quality of data over quantity for impactful results. A huge thank you to expert.ai for sponsoring this insightful episode. Tune in to unravel how AI is reshaping the landscape of insurance! 🔗 Listen to the full episode here: https://lnkd.in/eACQw5Vj #InsuranceUnplugged #AIinInsurance #SwissRe #InsuranceTech #DataQuality #InnovationInInsurance #sponsored