“Together as possible, different as necessary” | Insurance business America
Overcoming individual challenges in the emerging insurtech industry
technology
By Emily Douglas
With a keen interest in AI and machine learning, WTW’s Lauren Finnis (pictured) is excited about the impact new technologies could have on the sector – but she also warns against rushing in headfirst without your data in place.
As a speaker at the upcoming Women in Insurance event in Chicago, Finnis leads the North American Commercial Lines practice for WTW’s Insurance Consulting and Technology group, which both licenses and deploys technology and provides consulting services – with an eye on generative AI .
“I’ve spent a lot of time talking about AI because it’s in the zeitgeist,” she told IB. “It’s what everyone is worried about or excited about. I think there are lots of them [opportunities] This is what we see for insurers with AI. However, there is much more work that carriers and insurers need to do on their data and data strategy.”
One area where Finnis sees untapped potential is robotic process automation (RPA), which she describes as “perhaps narrow AI, not genetic AI.” RPA, which primarily uses machine learning, can automate mundane, manual tasks – a crucial step before harnessing the full power of generative AI.
“It’s bad enough that you have to wait for the regulator,” Finnis said. “The moment you’re ready from the regulator, you want to go – and that’s why we’ve been working with insurers to transform [rate change] Process and externalization [rating] from the policy management system. [So] Once you make a decision, implement that decision.”
But even with AI at the helm, not everything is going smoothly in the industry. One of the bigger hurdles in this area, as Finnis explained, is the diversity and specialization inherent in commercial insurance lines. Unlike private lines, which are largely homogeneous, commercial insurance requires a differentiated approach.
“Commercial spaces are not homogeneous and people generally think that everything requires a special approach,” Finnis added. “We often see companies where the product lines alone become small fiefdoms. This is what we want to achieve: transformation, automation and modernization. It’s not just about convincing one person, it’s about convincing multiple people and trying to develop a process that multiple stakeholders can somehow participate in.”
This requires a delicate balance between standardization and adaptation – or CAPDAN – “common as possible, different as necessary”. But despite these challenges ahead, Finnis is optimistic about the opportunities presented by technological advances.
“The technology is evolving very quickly,” she told IB. “I recently presented at the Casualty Actuarial Society’s Ratemaking, Product and Modeling Seminar where we discussed the underwriter of the future. To achieve this we have gone through the decades – the 80s, 90s and today. We looked at how the underwriter’s job has changed – it didn’t change that much in the ’80s, ’90s and early 2000s – but now it’s changing rapidly.”
However, this drive to adapt presents significant opportunities for consulting firms that can bridge the gap between old practices and new technologies. Finnis’ team at WTW specializes in competency benchmarking and best practice reviews, essential services that help companies navigate the complexities of modern insurance markets.
“Skills benchmarking and best practice reviews drive technology and change,” she said. “Before carriers embark on such changes, they need support in creating roadmaps and prioritization – because there is so much happening.” Once they want to make these changes, there are very few advisory groups – the niche we fall into, lies at the intersection of technology and industry expertise. So we have people in our practice who have worked on the carrier side, and we also have that deep technical knowledge.”
This combination allows WTW to offer specialized services tailored precisely to the needs of the insurance industry. And this depth of knowledge is crucial in a sector as complex as insurance, where explaining the nuances to those outside the industry can often be confusing.
“Our technology is developed by industry experts,” she told IB. “Insurance is a highly specialized industry. We all try to explain it to our friends, family and loved ones and get the question mark look; it is not easy. Therefore, a specialized service is required.”
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2024-05-17 14:18:36
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