November 2, 2022

Innovation elevates the entire insurance value chain

<!-- wp:paragraph --><p><strong>Hemant Harie, Managing Director of Gabsten Technologies</strong></p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong><em>Data in the healthcare sector is heavily regulated, with numerous laws and regulations governing how data needs to be processed, protected and retained.</em></strong></p><!-- /wp:paragraph --><!-- wp:paragraph --><p>This has become more important than ever in light of the Covid-19 crisis, which has made healthcare data an increasingly attractive target for cybercrime. However, the pandemic has also highlighted the need to be able to analyse and share data effectively, as the world strives for improved treatment protocols and ideally an effective and safe vaccination. Data management has become a critical tool to unlocking the value of healthcare data, during the pandemic and beyond.</p><!-- /wp:paragraph --><!-- wp:heading {"level":3} --><h3><strong>MANY REGULATIONS MAKE HEAVY WORK</strong></h3><!-- /wp:heading --><!-- wp:paragraph --><p>In South Africa the Healthcare Professions Council of South Africa’s (HPCSA) guidelines state that medical&nbsp;records must be stored for at least 20 years. In addition,&nbsp;the Protection of Personal Information (PoPI) Act stipulates minimum requirements for maintaining privacy when it comes to processing personal information.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>There are also international laws like the Health Insurance Portability and Accountability Act (HIPAA) enacted by the USA, amongst others. Stringent management of healthcare data is critical; however this is vital not only for compliance but also to prevent successful data breaches resulting from cyber-attacks.</p><!-- /wp:paragraph --><!-- wp:heading {"level":3} --><h3><strong>VALUABLE DATA IS AN ATTRACTIVE TARGET</strong></h3><!-- /wp:heading --><!-- wp:paragraph --><p>Healthcare data has always been a target for cybercrime, but we have seen huge increases in attacks as a result of the pandemic. The data stored within the healthcare sector is more valuable than it has ever been, and the volumes have also increased dramatically. From personal records, statistics, to testing and results, finances and economics, healthcare data is critical, so it could very easily be held to ransom. Unfortunately, there is no silver bullet solution to mitigating attacks, fending off ransomware and protecting patient information. Best practices around data management are the only answer, with high availability, effective backups and disaster recovery forming the crux. Whether data is stored in the cloud or on premises, this is essential.</p><!-- /wp:paragraph --><!-- wp:heading {"level":3} --><h3><strong>UNLOCKING THE VALUE OF DATA</strong></h3><!-- /wp:heading --><!-- wp:paragraph --><p>Data management is an essential component of compliance endeavours. It is impossible to understand what laws a provider might be breaking if they do not know what data they have, where it is stored and how it is used. However, data management goes beyond this, because without understanding, not only can data not be protected, it has no value and can actually be a liability.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>In a time where data is the key to fighting a pandemic that brought the world to its knees, it is imperative to be able to share information across the healthcare sector. However, it needs to be shared safely, which is why data management is critical. Without security and management protocols in place, vulnerabilities are created, which could have devastating consequences.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>Data management provides not only the necessary backup, recovery and high availability, it also delivers the indexing and analytics needed to unlock value and help to save countless lives and economies.</p><!-- /wp:paragraph --><!-- wp:heading {"level":4} --><h4><a href="https://cover.co.za/wp-content/uploads/2021/05/Gabsten-tech.pdf" target="_blank" aria-label="undefined (opens in a new tab)" rel="noreferrer noopener">Download the article as it appears in the March edition of COVER</a></h4><!-- /wp:heading --><!-- wp:paragraph --><p></p><!-- /wp:paragraph -->
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November 2, 2022

Driving economic activity, inclusion and growth within the F&I industry

<!-- wp:paragraph --><p><strong>Patrick Ashton, Managing Executive at SilverBridge Holdings</strong></p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong><em>The global intelligent process automation (IA) market is expected to top $14 billion by 2024. However, the insurance industry has, in some instances, been slow in reacting to the opportunities presented by the technology.</em></strong></p><!-- /wp:paragraph --><!-- wp:paragraph --><p>This is not altogether surprising given insurers’ historic slower pace in adopting new technologies when compared to the banking sector for example.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>Unlike robotic process automation (RPA), which can be considered a more mechanical process that frees up&nbsp;staff from repetitive job functions, IA combines RPA and artificial intelligence (AI) technologies to empower the&nbsp;intelligent automation of business processes.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>For insurers, part of IA sees intelligence injected into those business processes that focus on critical decisioning points such as underwriting and claims.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>So, while RPA relies on algorithms that can replicate keystrokes and greatly assist businesses with high&nbsp;volumes of transactions, IA includes a specific focus onautomating decisioning in business processes.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>Fortunately, the lockdown has contributed to a momentum shift with insurers realising they can no longer rely on traditional, paper-based processes. Instead, the focus has been on digitising as much data as possible, a critical step before any form of automation can be implemented.</p><!-- /wp:paragraph --><!-- wp:heading {"level":3} --><h3><strong>A MATTER OF IP</strong></h3><!-- /wp:heading --><!-- wp:paragraph --><p>And yet, when it comes to the decisioning process, insurers still view it as a fundamental component of their intellectual property. One can understand the thinking behind this given the amount of time spent training&nbsp;individuals to become experts in their fields. After all, the&nbsp;potential exposure when calculating risk and performing underwriting functions can number in the millions of Rands if done incorrectly.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>The reluctance to automate human expert decisioning with AI is evident. But this does not have to be the case. AI can be used to model the most highly skilled underwriters and claims experts within the insurer and has the added&nbsp;benefit of being available 24x7 which dramatically speeds&nbsp;up historically slow processes, often subject to tight SLAs. This greatly improves the customer experience as self- service solutions can be introduced where people can manage their policies at a time convenient for them.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>Given their nature, insurance companies are risk averse and generally slower to adopt new technologies. They are generally reliant on their ‘human experts’ and are hesitant to replace them with automated solutions. But the need to use these experts’ time more efficiently will gradually see insurers embrace IA, thereby freeing up resources now capable of delivering more strategic functions inside the organisation.</p><!-- /wp:paragraph --><!-- wp:heading {"level":3} --><h3><strong>CUSTOMER-DRIVEN</strong></h3><!-- /wp:heading --><!-- wp:paragraph --><p>It could very well be the focus on customer-centricity that delivers the final push needed for insurers to fully adopt IA. By improving manual and multiple step processes through automation, employees can be repurposed for other, higher valued tasks. Real-time decisioning through AI can, for example, reduce the number of fraudulent claims. This, in conjunction with other more efficient administrative processes, will bring about a reduction in product pricing that will lead to happier customers and ultimately an increase in profitability and improved market competitiveness.</p><!-- /wp:paragraph --><!-- wp:heading {"level":4} --><h4><a href="https://cover.co.za/wp-content/uploads/2021/05/Silverbridge1.pdf" target="_blank" aria-label="undefined (opens in a new tab)" rel="noreferrer noopener">Download the article as it appears in the March edition of COVER</a></h4><!-- /wp:heading -->
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November 2, 2022

Commercial Crime trends

<!-- wp:paragraph --><p><strong>Stephen Richardson, Market Consultant at SSP</strong></p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong><em>COVER spoke to Stephen Richardson, Market Consultant at SSP, to unpack the covid 19 pandemic&nbsp;</em></strong><strong><em>and get his thoughts on the future on the insurance industry moving forward.</em></strong></p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong>COVER: You recently published a whitepaper titled “After the Shock: Insurance in 2021 and Beyond”. It made for very interesting reading. Please tell me a bit about what led to you actually going into all the research for a paper like that?</strong></p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong>Stephen:</strong> It was a realisation that COVID-19 was going to cause a significant market shock. Whenever there is a major economic or market shock, the successful organisations are those that react to it, and then navigate the changing market in which they find themselves. If you think back, the last major shock we had was in 2008 with the global financial crisis. Insurance reacted by becoming quite insular, focusing on the products and new regulations, reigning in spending. That’s a trend that many analysts think led to the rise of the insurtech; they attempted to fill the customer-centric void that was left by the incumbents. So I was interested to know - after another shock ten or so years on - had the industry learned any lessons from 2008? How were they going to react to this specifically?</p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong>COVER: Obviously a lot of work went into compiling this. Please give us some insight into your process?</strong></p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong>Stephen:</strong> The key to any good report is multiple streams of research and multiple sources from which you derive information. There’s around 50 references in this - including many analyst reports, speaking to executives at insurance companies, and looking at what major industry players and influencers are speaking about on LinkedIn. As I work for a technology company, I also have the advantage of asking my colleagues in the sales and account management teams what are they seeing in terms of customer demand too.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>Using all of those inputs – and bearing in mind that all of&nbsp;these sources have their own agendas, I applied critical&nbsp;thinking and my own evaluations to collate my findings. It was definitely not a regurgitation of existing analysis. The&nbsp;aim was to bring something new to the table, as well as sharing others’ insights.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong>COVER: Personally, I definitely found lots of new insights. What was the most exciting stuff that came out of that for you?</strong></p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong>Stephen:</strong> The good news is that my findings seem to show that insurance companies have learned from 2008. What we’re seeing right now in response to COVID-19 is greatly accelerated digital transformation. I suspect we’re going to see about five years’ worth of innovation in the next 12- 18 months. In my report, I highlight these innovation trends across three key market segments: personal lines; SME insurance and; the commercial lines space.</p><!-- /wp:paragraph --><!-- wp:heading {"level":3} --><h3><strong>PERSONAL LINES</strong></h3><!-- /wp:heading --><!-- wp:paragraph --><p>These trends are very customer-centric and are largely driven by what-are-called digital ecosystems. Insurers are partnering with a network of complementary products, services, and technologies to deliver improved customer experiences. This might manifest itself in:&nbsp;shorter online journeys; the types of online web journeys; flexible insurance; personalised insurance. Even the most&nbsp;innovative insurers are creating these holistic propositions that extend beyond insurance to include additional services and, sometimes, even moving away from the model of carrying risk to becoming orchestrators of risk- prevention services. There is a real change in the model.</p><!-- /wp:paragraph --><!-- wp:heading {"level":3} --><h3>SME INSURANCE</h3><!-- /wp:heading --><!-- wp:paragraph --><p>There is a real battle between brokers and direct insurance for distribution. Small business owners basically value two things - advice, and a simple buy-in journey - because they’re time-poor. Direct insurance has the simple buy-in journey done well... but they lack the advice. And so what they’re doing is infusing the advice into the web journey. Where brokers need to adapt is to improve their web journey to make it easier for these time-poor small business owners to purchase insurance.</p><!-- /wp:paragraph --><!-- wp:heading {"level":3} --><h3>COMPLEX COMMERCIAL</h3><!-- /wp:heading --><!-- wp:paragraph --><p>Insurers here have a very different focus: it’s on improving underwriting profit and profitability by analysing risks at individual and portfolio level, through using internal data insights as well as external data around markets and climates to improve underwriting decision-making and ultimately drive greater profitability. To summarise the three at very high-level and across all of the segments, there are three key technologies that emerge: the use of data; the Internet of Things; and APIs that enable ecosystem integration.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong>COVER: Did you find that there’s a serious commitment now to try to be part of this evolution?</strong></p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong>Stephen:</strong> Absolutely. I think there are various things around COVID-19 that have forced insurance companies to innovate. Let’s consider motor insurance. Previously a twelve-month fixed policy was fit for purpose – when twelve months looked the same. Except now, suddenly people are working from home half the time and cars just sit on their driveway – they’re only using it for essential food shopping but are having to pay the same insurance premium that they paid pre-COVID. Back then I was driving all the time – this policy seems unfair to the customer. I think this will act as a real catalyst for insurers to evolve: if you offer a flexible product that can be scaled up or down in terms of the cover, that fully reflects the changing circumstances in people’s lives.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p>Consumers are more likely to purchase that sort of product because it seems much more customer-centric and far more personalised to them. There’s already multiple examples of that business model in the market. In the SME space, there’s increased risks of cyber-attacks being another catalyst. The commercial lines market is&nbsp;hardening. These aftershocks brought about by COVID-19&nbsp;are driving real change.</p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong>COVER: I suppose people are thinking about risk in a different light - realizing that risk is an important factor to consider in the business. So where to from here, Stephen? What are you doing with the whitepaper and who will benefit from this?</strong></p><!-- /wp:paragraph --><!-- wp:paragraph --><p><strong>Stephen:</strong> We have already distributed this to over 1000 industry professionals that we know and speak with – and by, of course, sharing this through you and the readers of COVER magazine. So this is a direct message to your readers. If you read the whitepaper and find there’s something you’d like to chat through then please get in touch. I’ll be more than happy to jump on a call to give some free consultancy. I wrote this paper ultimately because I’m passionate about insurance companiesthriving – and to do that you must innovate with the right information as your compass.</p><!-- /wp:paragraph -->
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November 2, 2022

Every business a technology business

Lemonade’s digital and value-first approach is well-suited to the post-pandemic world and provides an opportunity for...
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November 30, 2022

Digital disruption exacerbating insurance personalisation

Digital disruption continues to change the game in the industry, with Covid 19 accelerating the process – leaving the industry faced with a paradigm shift
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January 12, 2023

FMI releases new online application for faster, smarter and easier business

Quicker to complete, less questions, live chat support and faster turnaround times are a few of the benefits that comes with their new digital application process.
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