Digital Transformation Upends Insurance Companies… for the Better

The retiring of legacy systems, combined with the pressure of changing consumer expectations and technology innovation is pushing insurance companies to take steps in their digital transformation journeys to serve clients better and improve behind-the-scenes efficiencies.

For each company, that journey looks a little different depending on what they hope to accomplish at the end of the day, and what pain points they have to begin with.

“Brokers are entering data in our systems, they’re classifying risks, and we’re relying on their expertise to properly classify a risk. At times, either because they’re moving very fast or because they don’t have enough knowledge of how to classify a risk, they may misclassify a risk,” said Kardiner Cadet, senior vice president of StarStone’s ecommerce division, and a Duck Creek client. “We’ve implemented artificial intelligence to confirm what they’ve entered in the system.”

For example, AI capabilities will catch if a broker classified a ‘family’ restaurant as one that doesn’t serve alcohol. However, that same restaurant could serve alcohol on the weekends, which means the risk hasn’t been accurately captured.

“Understanding that nuance through AI has been transformative for us. It’s allowed us to cull our book of many risks that we otherwise would have written,” explained Cadet, adding that at the same time, adding those capabilities hasn’t changed StarStone’s broker-facing interface, which remains as seamless as ever.

Read more at Insurance Business America here >