AI use cases and case studies for commercial insurance providers in 2021

By Team Intellect SEEC

Jun 23, 2021

Banner image

This blog discusses the key highlights of the 2021 webinar on “Modernizing Commercial Insurance using AI” by Novarica and Intellect SEEC.

Novarica helps more than 150 insurers make better decisions about technology projects and strategy through research, retained advisory services, consulting, and special programs.

Intellect SEEC is a ‘solution partner’ to commercial insurers that leverages artificial intelligence (AI), machine learning (ML), NLP and big data to deliver end-to-end underwriting solutions.

As the need for commercial insurance becomes more evident for businesses, commercial insurance providers are quickly transforming their operations to support the demand to accurately insure risks. With data science at the forefront of decision science and predictive analytics protecting carrier risk – AI, big data, ML and NLP are the technologies that work together to help insurance carriers effectively manage their underwriting operations.

 

Four Major Categories of AI Usage in Insurance and their technology applications

 

1.Machine learning in commercial insurance 

Having an autonomous machine to identify and learn new pattern incoming data, ensuring accurate decisions are made in every stage of a submission’s journey.

 

Technology applications of machine learning in commercial insurance

 

2.Image Recognition (or) Machine Vision

Extracting unstructured data from digital image formats and converting them meaningful into validated and verified data and consequently draw actionable insights

 

Technology applications of Image recognition or machine vision in commercial insurance 

 

3.Audio/Voice Recognition

Converting audio-based data through Natural Language Processing (NLP) into a meaningful and consumable data source.

 

Technology applications of Audio/Voice Recognition

 

4. Text Analysis

Applying Natural Language Processing (NLP) AI to unstructured data like text and documents through pattern identification and correlations.

In addition, solutions like Intellect SEEC’s Magic Submission and Risk Analyst helps the entire underwriting process perform more qualitatively by extracting, normalizing, validating and enriching the unstructured data.

 

Technology applications of Text Analysis

 

So, how do you prioritize the adoption of such technologies in commercial underwriting operations? 

 

As commercial insurance providers begin to understand that emerging technologies like AI don’t exist in vacuums, the next priority is understanding how to lay the groundwork in order to capture full value in the future.

Insurers need to look across different technologies and prioritize based on two main factors –

– Jeff Goldberg
Executive Vice President of Research and Consulting, Novarica

 

Let’s look at three key values that could be achieved within commercial insurance operations using AI

 

 

Artificial intelligence use cases across the commercial insurance value-chain

 

Every part of an insurance value chain can ultimately benefit from AI.

For example, on the underwriting side, photo analysis of a roof to determine age or damage estimates would use Image Recognition of AI to manage risk.  On the product side, predictive modeling can be used to deploy better pricing models and actuarial decision making.

As it becomes evident that AI is implementable across your enterprise and business operations, there are few key considerations beyond the core features that commercial insurance enterprises need to look for while evaluating a solution or solutions partner.

 

How does Intellect SEEC approach commercial underwriting?

 

“As the focus is on shifting from being a cost-center to a profit-center, the business models changed with it. To support this shift in the industry, we decided to focus on the technology that enables this shift and continuously figure out new ways to provide value to insurance carriers by helping consumers, process and harness big data.

 

And this is because Intellect SEEC not only provides technology solutions but also ‘transformation accelerators’ to help carriers adopt these massive technologies within their business and operations.”

-Laila Beane, CCO and Head of Consulting, Intellect SEEC

 

These include – core technology resources like fullstack developers, integration specialists, off-shore pull up data scientists to fully support the transformation process of our clients.

 

Intellect SEEC was recently placed as an ‘Advanced Underwriting’ solution applicable for a broad use by Novarica.

 

AI use cases in commercial underwriting with Intellect SEEC solutions

 

1. Prospecting to prospect prioritization – Our solution helps you process submission data based on your preferences efficiently and this enables you to expand and explore new LOBs or markets

2. Submission Intake – Accurate extraction, normalization, validation and enrichment of massive amounts of incoming customer data from brokers or your business units and ensuring that the data is accurate, real-time and not decayed.
These could be PDFs, excels, ACORD Forms, Image files etc. Most importantly the incoming data is enriched from thousands of sources and validated for veracity and footprint integrity through triangulation from thousands of sources.
These sources could be government permitted, or property level hazard risk reports from e.g. HazardHub

3. Triage / Submission prioritization – Leveraging solutions that help you prioritize your submissions based on the submission data based on predefined appetite preferences.

4. UW Insights – As underwriting shifts to a profit center, it is imperative that underwriters are provided with comprehensive and accurate risk insights for faster decisions. Broker submitted and historical insights alone are not enough, given the explosion of available information.  Although carriers have data partnerships with known sources, Intellect’s data platform eliminates the need for underwriters to spend time on search, match, aggregate and then apply inconclusive logic to come to a decision.

5. Pricing – Accurately positioning pricing options at an intricate level after understanding the risks at granular level is imperative to preventing premium leakages.

6. Quote & Bind – Our solutions are designed to help underwrite create multiple quotes and compare them based on your customer’s preferences and help you find the ideal premium and risk at an intrinsic level.

“Commercial insurance providers have been doing predictive analytics for a long-time now but the scale and accuracy that Big Data and AI provide and the precision in which they operate is irreplaceable in today’s business.”

– Jim Mckenney, Chief Strategy Officer and Products Business Head, Intellect SEEC

 

WATCH THE FULL WEBINAR

 

Want to know more about how Intellect SEEC’s solutions provide value to the underwriting life cycle? Visit www.intellectseec.com