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WHY AI IS MORE IMPORTANT THAN EVER FOR INSURANCE COMPANIES

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By Faisal Abbasi, Managing Director UK&I, IPsoft

 

Much has been written about the potential of Artificial Intelligence (AI) to revolutionise insurance. The sector has made huge strides to drive innovation by investing in new technologies over the last few decades. Indeed, the financial services industry has long been ahead of the curve in terms of elevating the user experience for both customers and employees, and many have already invested in building a Hybrid Workforce, in which human and digital colleagues work together.

Today, amidst unprecedented sudden challenges that have upended industries, businesses and lives with a strong impact on insurance services, it doesn’t really come as a surprise that many are already looking to AI-powered digital employees and investing in cognitive solutions to upgrade and scale customer-facing processes. So, where can AI be implemented to transform processes and improve operational efficiency and customer service within insurance firms?

 

Empowering customers

Digital employees, like Amelia, can automate common user engagements, such as claim enquiries and quote to cash functionality at scale through Natural Language Processing (NLP) whilst securing backend integrations with an organisation’s specific CRM and data management systems. For example, a customer can get immediate answers to questions like, “When is my monthly premium due?” or “How much would it be to add my daughter onto my auto insurance policy?” and leave expert human agents to handle individualised customer needs. This benefits both employees and customers by firstly speeding up the customer resolution process and secondly giving back time for agents to focus on higher level requests.

By automating straight forward enquiries, insurers can improve customer satisfaction rates by empowering them to get answers more quickly and efficiently. In turn, employees can instead focus their time on higher-level interactions that are both more rewarding for the employee and beneficial for the business, such as building rapport or handling sensitive enquiries.

 

Streamlining the customer journey

Insurance firms want to make the customer experience of their contact centres as seamless as possible. So, many have chosen to integrate AI at the beginning of the customer journey to help authenticate users and identify the intent of enquiries. For example, a digital employee can confirm the routine information, such as asking “What is your name and policy number?” or “In a few words, describe what we can help you with today.” and get the customer in front of the right agent from the outset. This again allows human agents to avoid repetitive information-gathering tasks, saving them huge amounts of time and helping better manage incoming calls.

 

Augmenting agents’ experience

As well as automating simple tasks, digital employees can also support in augmenting the work of human agents by acting as a ‘whisper agent’. Digital employees can work directly with customer agents by discreetly sharing instant, relevant information with them – hence the term, ‘whisper agent’. This is key for ensuring all customer calls are compliant with the industry’s significant regulatory requirements as well as being in line with company protocols. Having the relevant information at hand in turn makes the call more seamless for customers and means employees do not have to spend time searching through databases, policy guidance or FAQ documents before responding to customers.

In this capacity, digital employees can significantly enhance employee satisfaction. By providing staff with instantaneous, on-demand information, human agents can feel safe in the knowledge that they are not only working quickly and efficiently but that their customer engagements are compliant. In addition, whisper agents reduce the time it takes to upskill new employees on company and customer processes, meaning organisations can get new recruits into client service roles quicker.

 

The future of insurance is in the Hybrid Workforce

According to Deloitte estimates, more than 85% of customer interactions are predicted to be managed without a human by the end of this year. A similar McKinsey report suggests that AI will transform every aspect of the insurance industry over the next decade. The role of insurance agents is changing dramatically, and with it, so are customer expectations. We will see an increasing number of firms adopting a Hybrid Workforce, in a bid to speed up processes and enhance the customer experience.

It will no longer be feasible for organisations to expect customers to wait in long phone queues to get the answer to a simple claim query. AI is causing significant changes and improvements to customer service across nearly all industries, and insurance is no exception. As more and more organisations get onboard with the notion of a Hybrid Workforce, there will be widening divide between the AI-haves and the AI-have-nots.

But it is not just about being ahead of the competition – it is also about being able to scale quickly and flexibly in order to cope with our fluctuating circumstances. Today, more than ever, it is vital that insurers can manage spikes in customer enquiries.

 

Banking

Emerging technology will power long-term sustainability within the UK banking industry 

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By Peter-Jan Van De Venn, VP Global Digital Banking at Hexaware Mobiquity.

 

Sustainability has been a big focus for the banking industry in recent years, with the issue becoming increasingly important for consumers. It’s no wonder that sustainability has become baked into the purposes of almost every bank, from Natwest to HSBC.

However, the economic uncertainty of the last year has led to many banks putting it on the back burner. Challenging market conditions have forced financial institutions to change their priorities to concentrate on protecting the bottom line. Our research found there’s been a significant drop in the number of UK banks saying that sustainability remains a key business strategy. 12 months ago it was a major priority for 100 per cent of banks, but now that number has shrunk to 60 percent.

Whilst it’s understandable that banks are feeling the pressure at the moment, there’s a risk that they will miss out if they hit the pause button. From cost savings brought by innovative digital products and services, to improved brand reputation and increased profitability, there are a lot of longer-term benefits they could be failing to unlock. So how can they keep moving forward?

Losing momentum

Emerging technology holds the key to their success, with the power to disrupt current behaviours and promote a more sustainable culture. Banks are already aware of this, with 76 percent using digital transformation to drive sustainability, but a lack of leadership has made it difficult to build momentum in the last 12 months. Currently just over half (54 percent) of banks have tasked an executive at board level with overseeing sustainability – way down from 83% just 12 months ago.

This lack of board authority means banks are struggling to engage the entire organisation to move ahead with sustainable initiatives. As a result, almost two-thirds of banks are seeing progress slow, admitting they are not actively taking steps to foster more sustainable behaviours throughout the organisation. Those that have taken their foot off the gas need to find a way to move forward again.

No time for standing still

Banks know that technology can drive sustainable behaviour. For instance, many of them are already encouraging their workforce to work remotely, as a way of reducing travel. This has two benefits – not only does it cut the costs of running physical offices at full capacity, but also reduces the bank’s carbon footprint. There has never been a better time to invest in technology to drive more sustainable behaviours.

New digital products and services can also extend the benefits beyond employees to encompass the wider customer base. A fair number of banks are already investing to make this happen. More than a third (35 percent) of banking organisations are using Machine Learning (ML), Artificial Intelligence (AI), cloud and analytics to make digital services more easily accessible. Investment in these technologies will be critical as the number of physical bank branches continues to decrease, with figures from Which? showing this is taking place at a rate of 54 branch closures each month.

Hitting environmental and social responsibility goals

Emerging technologies can also help banks keep pace with tightening ESG rules and regulations. Banks are faced with demands for increasingly granular reporting and transparency on ESG – demanding a new approach. In line, 41% of them are developing data visualisation tools to improve stakeholder engagement and understanding of ESG risks and opportunities, while 37% are using machine learning and artificial intelligence to identify and track ESG risks and opportunities across a wide range of data sources.

More than one in three are also using the blockchain to improve transparency and traceability in supply chains, and implementing digital tools and platforms to collect, analyse, and report ESG data and metrics in a standardised and consistent manner. All these applications of emerging technology will put banks on track to address global environmental challenges and unlock a greener future.

Long-term sustainability

As the economic pressures hopefully start to subside, increasing numbers of banks will start investigating how they can use emerging technologies to provide engaging experiences and value-added services for customers, to drive greater revenue and efficiencies.

Whilst banks are right to focus on their revenue under difficult trading conditions, it’s important they don’t miss out on the long-term benefits that sustainability can bring. To capitalise on this, banks must keep pushing the boundaries and invest in emerging innovations to drive more sustainable banking behaviours, benefiting the planet and driving great digital experiences for customers.

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Banking

The Future of Banking: Streamlined Cash Management for ATMs

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Gaetano Ziri, Innovation Manager, Auriga

 

“Maintaining free access to cash for the community demands robust strategies to mitigate the escalating costs incurred by banks and ATM operators in handling cash. A pivotal step in this direction is modernising cash management systems to foster efficiency and reduce operational costs.

Back in 2018, a report by McKinsey underscored the urgent need to overhaul the largely manual and disjointed systems relied upon by nearly half the banks worldwide for forecasting cash requirements at branches and ATMs. Despite the decrease in cash usage noted by the European Central Bank, the cost of managing cash has not abated, primarily due to surging labour costs.

To reconcile the demand for free access to cash with the requisite cost reductions, banks are increasingly turning towards tech-driven solutions in cash management that elevate service levels while driving down expenses.

The Complex Landscape of ATM Network Management

Operating a vast ATM network can be a double-edged sword for banks, simultaneously offering customer convenience and engendering considerable challenges, including substantial cash handling, management, transit and security costs. Each ATM embodies a multifaceted operation involving numerous cash transfer operatives, necessitating a coordinated strategy to forestall costly inefficiencies.

The remedy is a holistic, data-centric approach to streamline the management of intricate ATM networks and counter the escalating costs associated with cash access. The merits of such an approach, grounded in continuous data collection and analysis across ATM networks, encompass:

  • Strategic Planning: Leveraging real-time data to craft bespoke strategies for individual branches or regions, assuring optimal cash flow management and averting superfluous cash loading orders.
  • Operational Transparency: Facilitating stakeholders with instantaneous access to accounting and operational data relating to cash supply chains, thereby enabling timely interventions and adaptations.
  • Enhanced Customer Experience: Minimising ATM downtimes to guarantee uninterrupted cash access to customers, enhancing their banking experience.

Innovations in Cash Management: A Closer Look

So, how does this revolutionary cash management technology function? The answer lies in a series of sophisticated features that employ cutting-edge predictive analytics, automation, and data-driven decision-making:

  • Predictive Analysis: Forward-thinking solutions predict cash necessities of distinct units, offering precise demand and cash flow projections by considering variables such as seasonal fluctuations, holidays, and daily usage trends.
  • Automation and Monitoring: Swapping manual processes or basic mathematical functions with modern software solutions for cash management ushers in real-time monitoring and efficient intervention planning, which can potentially diminish order management costs by a significant margin, whilst improving precision and operational fluidity.
  • Optimised Cash Transit Management: Utilising predictive analytics to strategically plan cash restocks, thereby reducing the likelihood of ATMs depleting their cash reserves and improving customer satisfaction.
  • Data-Driven Decision Making: Availing a comprehensive dashboard to generate timely reports and monitor critical metrics facilitates strategic decision-making grounded in accurate data, substantially reducing residual cash stock in ATMs.

As the financial landscape evolves, banks and financial institutions are impelled to adapt and innovate. Traditional cash management approaches are increasingly becoming outdated, paving the way for modern, data-driven solutions. These not only embody a commitment to technological advancement but also signify a strategic movement towards future readiness.

Embracing such technologies promises streamlined operations, substantial cost reductions, and a superior customer experience, setting a new standard in ATM network management.”

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