IN THE KNOW


8 FEBRUARY, 2024

InsurTech news from your insurance Intermediary in Kuala Lumpur Malaysia

As a popular insurance intermediary in Kuala Lumpur Malaysia, it’s our job to keep our finger on the pulse of the industry we operate in so you don’t have to. We’re leading the way with our popular e-tgcinsure app, but our insurance industry as a whole still has come catching up to do around InsurTech. Technology is revolutionising our world, automating and enhancing efficiency at every stage from onboarding customers to essential paperwork and claims handling. It’s no surprise the world’s InsurTech market is predicted to expand by more than 50% by 2030. During 2023 innovations in InsurTech brought dramatic changes to the financial services industry, especially the back-office side of things. So what are the experts saying about InsurTech in 2024? Some believe the coming year will be all about catching up – but what, exactly, does that mean in practical terms? We decided to explore.

How InsurTech automation – not AI - will drive efficiency

Automation and AI can both bring efficiencies, but only when supported by human intelligence, experience and wisdom. However good an AI is, if people can’t engage with a fellow human when there’s a problem or they have a question, the technology has failed to improve things. In 2024 we’re expecting to see a flurry of AI and automation-based Insurtech projects designed to improve efficiency, controls, and operational strength. The back office is where most inefficiencies still lurk in the insurance sector, so the hope is AI and advanced analytics will be able to streamline everyday processes without damaging customer service.

Some people are saying insurers should focus more on intelligent automation than AI, a cautious approach that may make sense given that the AI scene is still so new and contains so many unknowns. Both AI and ML systems can analyse huge amounts of data from multiple sources: historical claims data, customer information, insight from IoT devices and more. When the data is accurate it does an excellent job of accurate risk assessment. But AI can and does make mistakes.One of the biggest AI issues is the ‘rubbish in, rubbish out’ problem, where AIs are trained on data that’s inherently flawed, either biased towards or against certain types of people, places, things and circumstances.

Some data challenges are worryingly common. Missing data, out of date data, incorrect data, it all leads to incomplete risk analysis, flawed underwriting and bad pricing decisions when used to train an AI. To do a proper job the data AIs are trained on must be clean, complete, and above all validated.

Some people feel that because AI is designed to make its own conclusions based on the data it has been fed, it isn’t suitable for insurance... yet. In our industry’s context AI error is just as dangerous as human error. Insurance is about correct and incorrect logical outcomes. Because intelligent automation is also about following pre-defined rules, not trying to think like a human, it could be the best solution for now.

Automation, AI, and insurance customers

The global economy is struggling with everything from wars to supply chain issues to climate change, all of which affects insurance. In a landscape like this insurers and intermediaries need to optimise resources while increasing efficiency across the board, and automation has a role to play. We’ve been seeing more and more Large Language Models and generative AI tools arrive in our world, profoundly affecting the way people interact with insurance service providers. Some are so sophisticated it’s hard to tell whether you’re interacting with a human or an AI. These experiences can be perfectly satisfying for the customer, already being used for filing and handling claims. The aim is to improve the user experience and we’re expecting to see improved performance from InsurTech systems through 2024.

Automation and climate predictions

In our world knowledge means power, and AIs can deliver a great deal of knowledge and insight in no time. Because AIs can crunch vast amounts of data instantly, they make excellent underwriting tools. The insurance industry is highly vulnerable to the impacts of climate change, for example. AI should ultimately be able to come up with more sophisticated recommendations around preparing for – and protecting against - unpredictable things like extreme weather events. An AI might, for example, use detailed past and present climate and related data to predict weather patterns and make vital recommendations to customers. If you operate in an area at increasing risk of flooding, an insurer could recommend you think ahead with a solid flood risk action plan. It means insurers can be proactive as well as reactive, something customers value.

How the cloud impacts the insurance world

The arrival of email and electronic documents revolutionised insurance. Now the cloud is taking things further to the benefit of customers. Cloud solutions let insurers be more agile and flexible, improve performance, boost cost efficiencies and enable better scalability, with SaaS solutions the star of the show. All this makes it easier for people to buy insurance and manage their policies. Today’s innovative digital ecosystems are good news for insurers as well as those who buy insurance. It’s easier to build creative, mutually beneficial links with other service providers. It helps insurers differentiate themselves, developing innovative new products to meet people’s needs in a fast-changing world. And it lets companies outside the sector embed insurance into their products and services smoothly and simply at the point of sale.

Making life easier for insurance buyers

One of the most important aspects of digital innovation is the ability to make life so much easier for buyers. Every marketer knows it – the better you can make the experience for your customers, the more people will come to you for an experience they appreciate and enjoy.

Reliably efficient service

We predict mobile apps and online portals, online claims submission, smart form documents, e-signatures and more will bring more positive change for insurance customers in 2024. The freight forwarders who use our e-tgcinsure app find it simple, enjoyable to use, and a genuine time-saving tool to make their working lives easier. We hope we’ll see more innovative apps, AIs and Machine Leaning systems coming on board in the near future to enhance the insurance sector’s positive impact.

Here’s wishing you a happy and successful 2024 from the insurance intermediary in Kuala Lumpur Malaysia you trust.

Sources

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