PriyaPatel
TLDR:
- AI and machine learning have the potential to revolutionize the insurance sector, but companies must first focus on data strategy.
- RPA is essential for automating manual tasks before adopting generative AI.
In the article “Common as possible, different as necessary” by Insurance Business America, Lauren Finnis from WTW discusses the impact of new technology on the insurance sector. She emphasizes the importance of AI and machine learning, but cautions that insurers need to prioritize their data strategy before diving headfirst into these innovations.
Finnis highlights the potential of robotic process automation (RPA) to automate mundane tasks and streamline processes. She notes that RPA is a crucial stepping stone before fully harnessing generative AI capabilities.
However, the insurance sector faces challenges due to the diversity and specialization inherent in commercial insurance lines. Unlike personal lines, commercial insurance requires a more nuanced approach tailored to specific needs. This balance between standardization and customization is crucial for success, as Finnis explains with the concept of CAPDAN – ‘common as possible, different as necessary’.
Despite these challenges, Finnis remains optimistic about the opportunities presented by technological advancements in the industry. Consulting firms like WTW play a vital role in bridging the gap between traditional practices and new technologies, offering services like capabilities benchmarking and best practice reviews to help companies navigate the complexities of modern insurance markets.
Ultimately, the combination of industry expertise and technical knowledge allows WTW to provide specialized services finely tuned to the needs of the insurance industry. As the insurance sector rapidly evolves, consulting firms will continue to play a crucial role in guiding companies through the complexities of modern insurance markets.
