Insurtech Magazine September 2023 | Page 96

FPT Software ’ s Truong discusses digitalisation happening in the property and casualty ( P & C ) insurance space today .

“ AI and the expansion of instant messaging platforms have heralded the arrival of human-like chatbots ; systems that allow businesses to serve millions of customers at the same time . And self-service solutions are streamlining activities such as policy administration , claims handling , and customer interaction . In a world where consumers consider phone calls cumbersome and time-consuming , chatbots have become a real necessity for business .

“ Usage-based insurance ( UBI ) programmes that use telematics are enabling more personalised and effective P & C insurance . Telematics encourage safe driving behavior , resulting in fewer accidents and claims payouts . While there is sometimes an aversion to ‘ big brother ’ type technologies , insurers get a better picture – or digital proof – of accidents to more accurately understand incidents and avoid any legal wranglings .

“ While AI and automation technologies are already used for underwriting and risk management , photo and video inspections and analysing properties , its use has extended to pricing policies based on risks , particularly for commercial lines . In claims management , AI is being used to assess photos of losses , and weather patterns , identify potential fraud and streamline workflow processes .”

“ This way , it enables insurers to overcome the challenges of evaluating and curating proven insurtech solutions themselves . This also circumvents the logistical obstacles and costs related to technical and operational integration .”

Truong concurs , saying the onus is on the insurer to know which transformation best suits its current model and needs . “ Ultimately , you need to know what transformations will push an organisation forward and priortise what ’ s most important and urgent – not everything can go digital overnight .