In a world of rising consumer expectations and cost pressures where insurers are expected to do more for less, intelligent solutions offer not only the opportunity to achieve the levels of efficiency the digital world requires but also a huge potential to increase profits. Leading insurers that use intelligent solutions to reinvent the customer experience and to drive human-machine collaboration are getting up to a ten-fold return on their investment.
Research survey shows a vast majority (80 percent) of insurers are aware of the value of intelligent solutions in taking on complex tasks. More than half (53 percent) of them are already investing in or piloting intelligent solutions for at least one business process. Perhaps most importantly, 65 percent of those investing in intelligent solutions are already reporting a four-fold return on investment (ROI) with some achieving ten-fold or more.
There are four main types of intelligent solutions: 1. Foundational automation enables basic straight-through processing. 2. Robotic process automation (RPA) enables broader automation in order to eliminate repetitive manual tasks. 3. Higher-end tools with cognitive capability use artificial intelligence (AI) to bring automated decision-making into the system with virtual agents. 4. The most advanced intelligent solutions are the ones with self-learning and self-healing capabilities.
We have identified more than 100 intelligent solutions opportunities across the life and P&C value chains. In claims management, intelligent solutions can automatically process claims data and analyze for fraudulent activity. In underwriting, they can help identify product trends linked to customer demand and profitability. In product and pricing, intelligent solutions can pool a wider range of risk factors for more accurate pricing. Virtual agents and chatbots are also enabling whole new levels of personalization and convenience in customer service.
Our Process Reimagined survey shows that the leading insurers that report the best ROI are using these intelligent solutions in one or more business processes. Of the 53 percent of carriers using these tools, 17 percent reported using it in one process, 30 percent in more than one and six percent across the whole value chain.
By investing more broadly in intelligent solutions, Accenture predicts a 10 to 20 percent increase in profitability for the North American insurance sector, worth between $10 billion and $20 billion for the industry. In order to unleash this great potential, carriers must be willing to take these intelligent technologies out of the labs and deploy them at scale.