November 15, 2018 | Written by: Craig Bedell
Categorized: AI | Risk & Analytics
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When it comes to analytics, AI and even innovation – don’t be fooled – there are no magic solutions. There’s no easy fix – especially for the insurance industry.
Ah, so now you are wondering where I am going and why I initially sound pessimistic. I am not negative. In fact, I am excited. I want to encourage you to explore even more aggressively the “new insights” that can be afforded your business. But I also want to change your perspective to ensure success.
I want to influence your thinking and provide you with some new context.
Here is the basic fact – Insight is worthless until it is acted upon. Further simply adding new insights to an already inefficient decision-making process only complicates matters.
My argument is that an insurance company’s ROI on analytics, AI and innovation is governed by its decision-making maturity. The more “scientific” the decision-making processes associated with underwriting, rating, claims and so many other aspects of day-to-day processing of business, the better able an insurance company will be in employing new insights and, critically, further streamlining the decision-making processes.
Right now, the insurance industry as a whole is terribly immature in its operational decision-making. Sure, we make great “macro” decisions, but over the decades of systems, process, product and even market evolution, we have lost control of consistency, accuracy and efficiency.
There are practices, process and tool sets perfectly suited for helping straighten out the “long and winding road” of decision-making.
I believe, over the next 18-24 months, you have a window of opportunity to transform the decision-making of your company. If you do not, the delays, frustrations, missed opportunities and even failures of investments into great insights will continue to ultimately “miss their mark”. Additionally, those insurance companies that address this opportunity will prevail – that may read cliché, but there is already evidence to prove this point. Please follow the link below to a white paper that my good friend James Taylor of Decision Management Solutions and I co-authored. We are both professionally passionate about promoting this fresh perspective.
Learn more: Innovation in insurance: Profit by focusing on decision-making