Technology Solutions for Insurance Companies, Part 2
Many large insurance companies are leveraging cutting-edge technology solutions to address straight-through processing, underwriting, and customer experience challenges. Below are case studies of companies that have implemented technologies such as automation, artificial intelligence, and big data to improve efficiencies and to deliver value to customers.
AXA and Vidado: Integrating Technology Solutions to Improve Straight-Through Processing
- AXA is a global insurance company based in Paris, France, with its U.S. headquarters based in New York City, NY, USA.
- AXA U.S. (now known as Equitable) partnered with Vidado, a company that leverages artificial intelligence to implement automation to reduce manual workflows.
- Equitable's group annuity products were heavily dependent on paper-based forms. Paper applications were entered manually, which was expensive and time-consuming for the company.
- The Vidado Document Automation Platform extracts handwriting and low-quality print from paper and digitizes the documents, reducing manual work and increase straight-through automation. The platform was customized and implemented to AXA/Equitable's straight-through processing needs.
- MetLife and New York Life Direct are other insurance companies that have partnered with Vidado to leverage the company's artificial intelligence technology to address straight-through processing improvements through automation.
Swiss Re and IBM Watson: Using Alternative Data Sources to Enhance Underwriting
- Swiss Reinsurance Company ("Swiss Re") is a reinsurance company based in Zurich, Switzerland, along with its U.S. headquarters in Armonk, New York. The company is one of the largest wholesale provider of reinsurance, insurance, and other insurance-based forms of risk transfer.
- Swiss Re partnered with IBM Watson to improve their Life & Health Reinsurance business unit, including state-of-the-art technology solutions to support the company's underwriting process.
- IBM Watson is a suite of enterprise artificial intelligence solutions that allows companies to make more accurate predictions, automate decisions and processes, and optimize time for employees to focus on higher-value work.
- Utilizing IBM Watson's big data, cognitive computing, and AI technology, Swiss Re's underwriters, insurers, and other employees can make timely and informed decisions and price risk more accurately.
Progressive Insurance and H20.ai: Deploying Technology Solutions to Improve their Digital Portals and Enhance Customer Experience
- The Progressive Corporation ("Progressive Insurance") is one of the largest vehicle insurance providers in the United States. The company provides insurance for motor vehicles, motorcycles, recreational vehicles (RVs), commercial vehicles, home/condo, and life insurance.
- Progressive partnered with H2O.ai to leverage artificial intelligence, machine learning, and predictive analytics to launch Snapshot, a mobile app and "Internet of Things" (IoT) sensor device that collects data from customers while they are driving. Customers have the option to either use the Snapshot App or install the device in their car. Data collected by Snapshot include "customer's speed, stop frequency, turn motions, maintenance, and other driving habits."
- For customers that opt-in to use Snapshot, they are incentivized to download the Snapshot app or use the plug-in the device with personalized rates and discounts based on their actual driving habits.
- As of February 2020, Progressive has collected more than 14 billion miles of driving data from customers.