On the 31st of January Copenhagen FinTech and the Innovation Network for Finance IT hosts a Get F’IT on insurtech, an industry to look out for in 2017. We will discover how established actors in the industry are working with new solutions and innovation to meet customer demands of the future. There will be exciting presentation from Lars Bonde, Group Managing Director at Tryg, Anders Nørh Holmstrøm, Innovation and User Experience Manager at Alka, Susanne Møllegård, CEO at Process Factory, and Anders Engdal, CEO at Insurance Business Applications. The event will present various aspects of how to work with innovation and how startups can interact with corporates in order to create innovation and new solutions.
In 2017 the insurance industry is faced with several key trends that could potentially alter the competitive landscape. The primary challenge that the insurance industry is facing is the rise of insurtech. Digitization and new technology have the capacity to permanently change business models as AI, cognitive computing, machine learning and blockchain startups produce technology compatible with the insurance industry. One example is Japan based insurer Fukoku Mutual Life Insurance, which seeks to replace 30 employees in a payment assessment department with AI based on Watson technology generating $ 1.2 million savings per year. Another example is Liberty Mutual which enables customers to navigate the insurance process simply using their voice.
Finally, an example of the fast pace of AI introduction in the insurance industry is the Lemonade story. Lemonade is spearheading a new type of insurance carriers we might come to see in the future. Their business model is built on transparency and cutting of the insurance jargon that makes it an outright nightmare to purchase insurance at some incumbents. Furthermore, their prices are estimated to be well below competition. They introduced their AI called “Jim”, which has set the unofficial record for the world’s fastest insurance payout in just 3 seconds. From the moment of insurance claim to payout, a mere 3 seconds passed, as the AI validated the claim and cross referenced it against the backlog of data it possessed.
Read more on the AI examples Fukoku Mutual and Lemonade.