Modern Insurance Magazine Issue 66

INSURTECH
Redefining the
Future of Insurance:
Empowering
People Through
Technology
Tim Hardcastle,
CEO and Co-Founder at INSTANDA
In a rapidly evolving insurance landscape where the
wave of democratising technology is well advanced up
to the proverbial shoreline, advances in automation and
Artificial Intelligence (AI) means what was once a wave is
now a tsunami.
Of course, this tsunami is seen as both a positive and
negative, arguably in equal measure.
On the one hand, there’s a fear that AI and automation
will lead to widespread job displacement within the
insurance industry. More positively, others state that these
technologies should be used to empower employees and
encourage them to achieve more than what was previously
possible.
By automating routine and time-consuming tasks, insurers
can free up valuable resources, enabling people to
concentrate on professionally fulfilling tasks where they
can add significant and intelligent value.
Let’s take INSTANDA as an example. By empowering
insurers to manage data in real time, design customised
questions, and handle ratings across various products
and geographies (all without extensive in-house
development resources), business users are allowed to
enhance operational efficiency, customer experience,
and profitability. This level of adaptability grants insurers
control over their operations the likes of which has been
previously unattainable, fostering a culture of innovation
and agility.
Creating Data-Driven Cultures
Leveraging data for insight is another example of where
technology can enhance operational efficiency. The
insurance industry is replete with data, yet much of this
invaluable resource remains untapped due to silos and
fragmentation. Therefore, the challenge resides not only
in collecting data, but in transforming it into actionable
insights. Herein lies the potential of automation and AI
to serve as a linchpin for data-driven decision-making.
Underwriters, for example, are already using technology
to leverage vast amounts of insightful data, enriching their
capacity to make well-informed decisions.
Many insurers are also optimising their broker distribution
channels, allowing new business quotations to be
uploaded in any format, which are then processed and
organised for underwriters to review. This not only
enhances the efficiency of the underwriting process, but
also elevates the role of underwriters by relieving them of
mundane tasks. The transformational impact on a team
and individual level can be quite profound.
Cultivating the Right Skills
Of course, central to harnessing the power of AI and
automation is the need for skilled individuals capable
of understanding, developing and maintaining new
and emerging technologies. Unlike previous industrial
revolutions, the pace of technological change today does
not afford the luxury of a gradual adaptation. The baseline
of what technology can do is changing all the time, and so
insurers must be in lockstep.
The insurance industry needs people to manage the
data estate and interact with that data in a completely
different way. This necessitates a shift in mindset and
the acquisition of new skill sets focused not just on data
mining but on transforming data into meaningful insights.
Consequently, the insurance industry must look beyond its
traditional boundaries to attract talent with the necessary
cognitive skills to drive innovation.
Looking Ahead
The integration of AI and automation is not just about
staying relevant. It’s about technology and people
working symbiotically to drive improved efficiency, better
decision-making, personalised customer experiences, and
innovative risk management strategies.
For insurers, the message is clear. The future is not about
technology replacing people; it’s about enhancing their
capabilities, empowering them to innovate and add value
in ways that have been previously unimaginable.
74 | MODERN INSURANCE