Another great Connected Insurance conference this year! It was a unique opportunity to reconnect with industry leaders and learn what experts are thinking about the real theme of the event: unlocking the future potential of the insurance industry.
I sat in on a number of really good sessions focused on how can organizations can become even better at understanding their customers using AI and analytics engines.
Outside of those sessions a lot of the discussion centred on the tremendous potential of AI and analytics engines to increase speed-to-market, anticipate trends and emerging customer needs, as well as providing enhanced digital experiences for advisors and clients that are more personalized, faster and deliver far more value than has ever been possible before.
Data is the new oil
All of these promised benefits, however, are contingent on one critical element—data. Data is the new oil, the valuable resource that fuels analytics engines.
But, without easy access to huge volumes of it, AI and analytics engines can’t get out of the driveway, let alone provide the business insights insurers are looking for to remain competitive in the evolving insurance market.
Legacy systems are a roadblock
The challenge for those same companies is that many are still running 20-30 year old legacy policy administration systems. And, although these systems have been patched and upgraded over the years and are still able to process existing business, they are a roadblock when it comes to harnessing the power of AI, analytics and digital solutions that enhance customer experience.
That’s because most legacy systems have a closed architecture—data gets siloed within them. They can’t interface with the insurance APIs that make it possible to easily move data to advisor and client portals, eApps, illustrations and analytics engines.
Although many of the presentations I attended stressed the future potential of AI and analytics, many of the discussions I had with executives had a more historical bent. Insurance executives are bought in to the benefits of harnessing emerging tech going forward, yet they also realize that yesterday’s infrastructure is not going to work.
Step one is getting off those core systems developed and implemented decades ago.
Modern Policy Administration Systems enable the AI/Analytics revolution
Life insurance leaders realize that capitalizing on the immense opportunity provided by AI and analytics means replacing the legacy core systems which hold their data hostage with modern PAS that can push data out to the business intelligence engines as needed.
These new gen systems enable straight-through processing, provide real-time accessibility to high-quality data and can interact with APIs to deliver that data to the AI and analytics engines.
The end product:
- Better reporting
- Faster reaction to regulatory and market changes
- More targeted products
- Better and more tailored communications with clients leading to higher conversion and satisfaction
- Enhanced digital, omni-channel self-service capabilities for clients and advisors
In the presentations I attended the underlying, but critical, message was the importance of capitalizing on one of the key strengths of your company — the vast volumes of historical client data—to feed AI and analytics engines and generate ground-breaking business insights and intelligence.
And, in the discussions I had on the conference floor much of the talk was about the idea that freeing that historical data means replacing the historic infrastructure it is stored in.
Big data, and the insights it makes possible, promises a bright future for insurance companies and their customers. The journey to realizing that promise starts with state-of-the-art policy administration systems that will revolutionize operations today and be the platform for AI and analytics advances tomorrow.