What Trust Automation Means for Insurance Industry Leaders – With Christian van Leeuwen of FRISS | Emerj Artificial Intelligence Research

COVID-19 has not only brought waves of disease and infectious variants around the world since early 2020. A tsunami of fraud soon followed the widespread spread of the pandemic engulfing the insurance industry around the world.

Recent report [pdf] Deloitte’s report highlighted some of the schemes that are proliferating as the regulatory and insurance environment adjusts from a period of intense demand and scrutiny. , which is not detected by most verification processes.

Addressing the rise in fraud is the new and unique impetus for AI in the insurance industry. Across financial services space. AI capabilities such as machine learning and those of larger document processing solutions streamline repetitive workflows in verification and compliance processes across all sectors.

Gartner report As the most important positioning term for marketing differentiated services, customer trust will soon surpass customer experience. In other words, the idea of ​​building a system that ensures trust from the very first interaction with a customer and provider reaches new heights through demand beyond a single marketing department. positioning language.

In an interview with Friss co-founder and CSO Christian van Leeuwen on the AI ​​in Business podcast, Emerj delves into the company’s “trust automation” mantra that pioneered its presence in the insurance market.

In this article, we extract three key insights from conversations with insurance industry leaders about what “trust automation” means as a discipline they can bring to their organizations.

  • Ensuring customer trust is key to streamlining your CX workflow. Ensuring that companies know their customers and their billing information is trustworthy from the very beginning of their business launch is the easiest way to streamline workflows for optimal customer experience and maximum retention.
  • Find opportunities in pressing challenges: From the IoT to other challenges, from the tsunami of data on the horizon, near-term digitization solutions must focus on delivering new products to customers and providing previously unthinkable revenue streams.

Listen to the full episode below.

The guests: Christian van Leeuwen, co-founder and CSO of FRISS

Expertise: insurance, underwriting, strategy, risk management

simple commendation: Prior to founding FRISS in 2006, Christian worked in financial services and technology. He started his career in consulting, from the mid-90s he worked for Capemigi and other companies, and once FRISS took off he worked as an analyst for Archmea’s business.

Ensure customer trust first and streamline CX workflow

Before automation, insurance professionals traditionally built their workflows around distrust. The entire digital policy lifecycle still relies today on verification of the information customers bring into the business.

But long before COVID, customers expected service systems to be bureaucratic and pedantic by design. At the time, insurance companies used these expectations to insure the least amount of risk possible. Even when digitization began, large companies opened siled “online-only insurance” departments to isolate the risks that ingesting digital-only documents greatly increased.

In the post-pandemic insurance industry, customers expect lightning-fast experiences and services with full data integration. As Christian puts it, the stakes are high for providers.

“These days customers expect a smooth settlement, a fast payment every time a claim comes up,” Christian tells Emerj. “If that doesn’t happen, customer loyalty no longer exists.”

From these trends, there are inherent tensions in starting the digitization of insurance in the digital insurance lifecycle, as the speed and liquidity customers expect undermines the scrutiny necessary to ensure trust in the insurance system. It looks like there is

Insurance professionals tasked with making increasingly risky decisions about the information provided by new customers are feeling the strain.

“By automating many of these processes, we really need to help insurance professionals and underwriters return trust decisions in real-time at the moment they need to make trust decisions. It’s not just about “Can I trust my customers?” But, ‘Can we trust the risks presented in this underwriting process?'”

– Co-founder and CSO of FRISS Christian van Leeuwen

According to Christian, what is needed to resolve this tension, and where AI capabilities are making the biggest difference in the insurance industry, is shifting the verification process from a system that distrusts by default to one where customer trust is already in place. It’s about moving to a guaranteed system. very beginning.

To achieve such a transition, insurance and underwriting AI projects should focus on developing APIs such as:

  • Automate all processes including validating information from customers during initial deployment.
  • Leverage data from the entire digital policy lifecycle to find trends that minimize risk and build a healthier portfolio for providers.

When customers are assured of that trust from the moment they step through the door, companies can “actually design their processes around how they best support the customer experience,” says Christian. Ensuring that trust through AI capabilities is what FRISS and more and more people in the insurance industry are calling “trust automation.”

See opportunities in pressing challenges

As Christian points out, nascent AI and digitization projects dealing with underwriting and claims face major challenges in the short term. Among them is the imminent flood of data from his emerging IoT, especially in commercial insurance for small businesses.

In a podcast, Christian pointed out the development of smart buildings that generate a lot of data, and providers need to enhance existing systems and develop new ones to handle them well.

But Christian is quick to point out that the development of these systems presents opportunities and new revenue streams that will define insurance and underwriting in an age of digitalisation.

Using a Chinese use case as an example, Christian describes a business where merchants and consumers transact through an online payment platform served by them.

When insurers gain a 360-degree view of their entire business through trust automation, they can point to previously unpredictable customer areas of the company with increased risk exposure and offer built-in insurance to cover them. I can do it.

Doing so has created numerous cross-selling opportunities.

“Not only did they provide insurance to merchants who had no insurance, [embedded] It used to be insurance, now there was a new market. They also sell it to anyone who buys from the merger, offering insurance built-in as part of the product they buy, and providing protection that delivery is good, of good quality, and that no items are lost. Did. ”

– Co-founder and CSO of FRISS Christian van Leeuwen

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