Trust is Foundational for the Future of Insurance

Gartner’s Hype Cycle for Digital Life and P&C Insurance 2022 shows the current trends in Insurance Technology. One element is clear throughout all of the trends mentioned and that is trust will be a necessary component for success. There are dozens of parties involved in any given policy lifecycle – insureds, partners, providers, agents, brokers, etc. In order for these technology trends to come to fruition there must be trust among all of the parties. In the current insurance ecosystem the gatekeepers of trust are the underwriters and claims adjusters. These individuals verify all documents and data that are sent to them and then use their learned judgement to decide whether to extend trust. For insurers to successfully implement the technologies in these trends they must find a way to automate trust. Trust Automation isn’t easy – having a human make the decision on who to trust is natural – allowing a computer to have even a small part of that decision is scary.  That is why a Trust Automation solution that includes human experience along with modern AI/ML technology is a must.

Holistic fraud prevention

Gartner’s report would call this approach “Holistic fraud prevention”, and that is part of the equation. The core of a Trust Automation solution is about extending trust to those that are low risk, and validating information that is outside your risk tolerance – whether that information is fraudulent or a risk that needs to be addressed. A Trust Automation solution evaluates a company or person from the beginning of the relationship through the entire lifecycle. Just like a human relationship – the longer the relationship goes on with positive actions being taken(such as paying premiums on time each month) the more trust can be extended to that individuals or entity

Challenges and Recommendations

Caution regarding drastic changes is to be expected, and Gartner pointed out obstacles for these changes: things such as fears of false positives that might impact customer satisfaction or promote discrimination, keeping respect to old fraud solutions, and the common misconception that fraud is a claims problem. Considering these, the report has brought to light 3 main user recommendations:

1. Call for reinforcements

Acknowledging the need for changes is the first step. A team that represents the entire policy lifecycle can manage trust throughout the workflow, bringing the opportunity to seek automation  solutions that would patch the possible weak links in the cycle.

2. Third-party data

Assessing third-party data offers the ability to quickly gather, and organize data so it can be used in multiple ways. For instance what if a third party data source let you know that a doctor involved in your claim was on a suspended license. What about a restaurant claiming to be a dinner establishment and their social media reviews show them to be a nightclub. These are examples of how third party data can be used to enhance your own internal data. Further, it provides a better employee experience because they no longer need to hunt for this information.

3. Build a plan for when trust is in question

Trust should always be extended when possible. When that trust is in question a human MUST be involved. That human should have the tools and skills necessary to evaluate the scenario in front of them and make a judgement call on next steps.

Trust automation should support the full lifecycle

A strong Trust Automation strategy is about supporting the insurance life cycle as a whole. It will allow you to enrich your claims and underwriting processes from beginning to end. Are you interested in learning more about Trust Automation?