Modern Insurance Magazine Issue 59

ISSUE
59
ISSN 2515-3803
THE MANY FACES OF AI
The Friendly
Hacker:
In Conversation with Keren Elazari
Europcar:
Courtesy vs. Hire
Activate Group
Roundtables:
What makes a seamless
consumer journey?
INSUR.TECH.
TALK
Insurtech Insights
2023 Contributors Media Partners

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WELCOME
Hello readers,
Welcome to Issue 59 of Modern Insurance Magazine, where we’ll
be looking at the benefits, risks and applications of Artificial
Intelligence capabilities within the insurance industry.
AI continues to divide opinion in terms of its practicality and potential use-case
within insurance. How can we look at making the most of developments in AI
technology without putting our cyber security at risk? How can we harness the
power of AI to relieve the mundanity of simple day-to-day tasks, giving time
back to address more complex, engaging work? Is there a fine balance between
automation and human input, and if so, how do we achieve it?
Amelia Barlow, Editor
To further consider the relevance of AI in insurance, we’re joined by Roi Amir,
CEO of sprout.ai, for an insightful piece addressing some popular misconceptions
associated with AI/ML capabilities (p.8). I also sat down with Keren Elazari, a
well-known cyber analyst, writer and speaker, for an interview (p.12) all about our
exposure to cyber risks in our homes and businesses - made even more prevalent
through our increasing adoption of AI capabilities. How we can learn to trust our
technology, and what extra precautions can we take in order to protect ourselves
from cyber criminals in an increasingly digital world?
As ever, there’s a treasure trove of thought leadership contributions from our inhouse
editorial board of experts, starting with Carpenters Group on p.17. You’ll
also find several articles from our group of esteemed industry associations from
p.31 onwards!
This edition is particularly rich in features and roundtable content, with a super
distinct series of roundtable discussions from p.65 held in collaboration with
Activate Group. We brought some of our leading industry professionals together
in this issue to discuss the consumer journey in motor claims, and the innovations
which are helping us to mitigate the challenges of elongated repair times and rising
claims costs.
We also return with the next edition of INSUR.TECH.TALK in partnership with
Insurtech Insights, bringing you the very latest updates from the world of insurtech
through a series of highly astute interviews and thought leadership features.
Rachael Pearson, Project Manager
As the days get longer here in the UK, I hope you all get your five minutes to relax
in the sunshine when you sit down to read this very special issue!
Until next time,
Amelia Day Barlow,
Editor,
Modern Insurance Magazine.
amelia@charltongrant.co.uk
ISSUE 59ISSN
2515-3803
Editor
Amelia Barlow
Project Manager & Events Sales
Rachael Pearson
Modern Insurance Magazine
is published by Charlton Grant Ltd ©2023
All material is copyrighted both written and illustrated. Reproduction in part or whole is strictly
forbidden without the written permission of the publisher. All images and information is collated
from extensive research and along with advertisements is published in good faith. Although the
author and publisher have made every effort to ensure that the information in this publication
was correct at press time, the author and publisher do not assume and hereby disclaim any
liability to any party for any loss, damage, or disruption caused by errors or omissions, whether
such errors or omissions result from negligence, accident, or any other cause.
MODERN INSURANCE | 3

12
MIM58Contents
8
42
65
75
14
4 | MODERN INSURANCE

8
12
17
31
14
41
42
45
47
48
51
53
55
56
Insight
Can ChatGPT and generative AI ever
have applications in insurance? by
Roi Amir, CEO, sprout.ai
Interview
The Friendly Hacker:
In Conversation with Keren Elazari
Editorial Board
Find out what our editorial board
panel of experts have to say in
this edition of Modern Insurance
Magazine.
Associations
Assemble
Modern Insurance’s panel of resident
associations outline the burning
issues in insurance.
Features
Digital Footprints and the Tale
of Pandora by Duncan Minty,
Independent Ethics Consultant and
Chartered Insurance Practitioner
10 minutes with...
ChatGPT
Courtesy vs Hire: Finding the Most
Suitable Mobility Option with James
Roberts, Europcar
Thinking Upside Down with Michael
Lewis: From Processes to Decisions
Just a Thought with Eddie
Longworth: AI Has No Conscience
No one left behind: Supporting
vulnerable customers and building
employee resilience in the insurance
sector, by Nikki Ceko, Strategic
Client Director – Insurance,
Davies Group
Introducing Paracode: Q&A with
Jim Parsons, CEO
Creating Competitive Edge with
Data, by Mohit Manchanda, SVP &
Business Head - Insurance, EXL
Conversational AI For Insurance
Claims - Speaking your Language!
by Gerry Brown, Head of Business
Development UKI, Elerian.ai
The Impact of AI in Underwriting:
Adrian Blidarus, Softelligence
59
61
63
65
Insurer brands leading the way in
Digital Experience, by Simon Fenn,
Director, Pancentric Digital
I Love Claims / ARC 360:
Industry Eyes turn to new AI Dawn
Welcoming National Windscreens:
Q&A with Simon Hunt, Commercial
& Services Director
In Discussion
Activate Group Roundtable, with
Pete Thompson, Director of Product,
Activate Group
Insur.Tech.Talk
Interviews
76 Welcome
Megan Kuczynski, President,
Insurtech Insights
77 RiskCreative
Janene Jonas, Founder, RiskCreative
78 Benekiva
Bobbie Shrivastav, Co-Founder and
COO, Benekiva
79
Cowbell Cyber
Alexis Cierra Vaughn, Global Award-
Winning Insurance Expert, AVP of
Agency Marketing, Cowbell Cyber
80 Tapoly
Janthana Kaenprakhamroy,
Founder and CEO, Tapoly
81
83
IRYS Insurtech
Margeaux Giles, Founder and CEO,
IRYS Insurtech
Insur.Tech.Talk
Editorial Board
Experts from within the Insurtech
sector and beyond join us once more
to share their unique insights!
INSUR.TECH.TALK BOARD
Disclaimer: Our publications contain advertising material submitted by third parties. Each individual advertiser is solely responsible for the content of its advertising
material. We accept no responsibility for the content of advertising material, including, without limitation, any error, omission or inaccuracy therein. We do not endorse,
and are not responsible or liable for, any advertising or products in such advertising, nor for any any damage, loss or offence caused or alleged to be caused by, or in
connection with, the use of or reliance on any such advertising or products in such advertising.
MODERN INSURANCE | 5

Editorial Board
17
CHECKING IN WITH
THE OIC PORTAL
Alan Hayes, Chief Legal Officer,
Carpenters Group
Karen Campbell, Chief
Information Officer,
Carpenters Group
AUTOMATION GOALS
IN THE CONSUMER
JOURNEY
Phil Price, VP Loss Adjusting
Technology, Crawford & Co.
19 BALANCING
AUTOMATION WITH
HUMAN INPUT IN THE
CONSUMER JOURNEY
Martyn Mathews, VP, personal
and commercial lines, LexisNexis
Risk Solutions, Insurance,
U.K and Ireland
CONSUMER DUTY
NEEDS TO BE AT
THE HEART OF A
REFORMED GTA
Simon Gallimore, CEO,
EDAM Group
21
23
25
THE DAY THE INDUSTRY
MOVED FORWARD,
TOGETHER
Chris McKie, Managing Director,
Vizion Network Limited
VULNERABLE
CUSTOMERS, AI AND
FRAUD
Sarah Glenn, Commercial Director,
RGI Solutions
FRAUD AND THE
METAVERSE
Lior Koskas, CEO, Diglog UK Ltd
ADVANTAGES OF THE
NETWORK MODEL IN
THE MOTOR INSURANCE
CLAIMS SUPPLY CHAIN
Jim Loughran, CEO, e2e Total
Loss Vehicle Management
WILL ARTIFICIAL
INTELLIGENCE EVER BE
FULLY INCORPORATED?
Dave Sargeant, Managing
Director, Gemini Accident
Repair Solutions
Editorial Board Contributors
6 | MODERN INSURANCE

EUROPCAR
NEW BRAND BLOCK
Color gradient background
File: 20151645E
Date: 7/10/2015
AC/DC validation :
Client validation :
Insur.tech. talk and
Editorial Board
AI AND FRAUD
DETECTION
Jason Harris, Recruitment
Services Director, Robertson
& Co.
27 CREATING
SUSTAINABILITY
ALONG THE VALUE
CHAIN
29
Dr Natalie Wong PhD, Marketing
& Communications Executive,
Automotive Refinish UK &
Ireland, BASF plc.
MOMENTS OF TRUTH:
AUTOMATION AND
THE IRREPLACEABLE
HUMAN TOUCH
Pete Thompson, Director of
Product, Activate Group
“ALEXA, SORT MY
MOTOR CLAIM”
Andrew Chandler, Sales
Director, FMG
THE EFFECTS OF
CONSUMER DUTY
REGULATIONS ON
VEHICLE RECOVERY
Mick Jennings, Managing
Director, Nationwide Vehicle
Assistance (NWVA)
66
67
68
69
70
71
72
73
Welcome - Bradley Collins, Chief
Commercial Officer, Insurtech
Insights
AXA Retail - Tara Foley, CEO of AXA
Retail
Munich Re - Dr. Fabian Winter, Group
Chief Data Officer at Munich Re
EIS - Anthony Grosso, CMO of EIS
Zego - Sten Saar, CEO of Zego
33 MASS
Aon - Marguerite Soeteman-Reijnen,
Chairman Stability Executive in the Personal Board, Injury Aon Sector
Holdings Sue Brown, Chair, Motor Accident
Solicitors Society (MASS)
CHO
Arma Karma - Ben Smyth, CEO,
Arma AI and Karma Machine Learning in Credit Hire
Anthony Hughes, Chair and CEO,
Revolut
Credit
-
Hire
Balázs
Organisation
Gáti, Global
(CHO)
Head of
Insurance, Revolut
35 APIL
BIMA Changes - Mathilda to the Strom, Personal Co-Founder Injury
& Deputy Discount CEO, Rate BIMA
John McQuater, President, Association
WTW of Personal - Pardeep Injury Bassi, Lawyers Global (APIL)
Proposition Leader – Data Science,
WTW FOIL
AI Capabilities Stretch Beyond Its
Novelty Value
Insur.Tech.Talk
Simon Murray, Chair of FOIL’s
Technology and Cyber Liabilities Sector
Editorial
Focus Team and
Board
Head of Business
Services at DWF
Experts from within the Insurtech
75 sector and beyond share their unique
insights. this issue, we look at
37 BIBA
Insurtech Success?
balancing Andrew automation Gibbons, Managing with customer Director of
satisfaction, Mason Owen the Financial concept of Services ‘digital Ltd &
transformation’, Chair of Industry and Claims how new Working signals Group
point to technology as a solution to
address BDMA economic concerns.
The Future of Damage and Claims
INSUR.TECH.TALK Management BOARD
Adrian Jolly, Head of Strategic
Development, British Damage
Management Association (BDMA)
39 CII
AI Will Not Displace The Need For
Claims Professionals
Dr Matthew Connell, Director, Policy
and Public Affairs, Chartered Insurance
Institute (CII)
MGAA
Our Future Depends on DE&I
Mike Keating, CEO, Managing General
Agents’ Association (MGAA)
MODERN INSURANCE | 7

INSIGHT
Can ChatGPT
and generative
AI ever have
applications in
insurance?
There’s no doubt that Artificial Intelligence (AI) is having
a moment, and the hype surrounding generative AI
and ChatGPT shows no signs of abating. Increasingly,
we are seeing traditional insurers become more open
to AI, a vast change from years prior. Insurers recognise
the potential of the technology to improve efficiencies,
deliver a better service for customers, drive growth, or
maintain market share.
8 | MODERN INSURANCE

INSIGHT
The insurance industry has only just begun to explore the
potential of AI, falling well behind other areas of the financial
market in adopting emerging technologies. If insurers are to
meet the changing demands of a new generation of customers
whilst responding to pain points like claims processing, then
insurers must embrace emerging technologies. The potential
of AI - and subsets like generative AI - is significant.
Not all legacy insurers are dragging their feet. Only last
week, Zurich announced it was hopping on the ChatGPT
bandwagon, experimenting with the technology in areas
such as claims and underwriting in the face of increased
competition from insurtechs. It’s only a matter of time until
other insurers follow suit.
Dispelling misplaced perceptions of AI
Misplaced perceptions of AI are a significant barrier to
the adoption of generative AI in insurance. It’s a common
misconception that IT systems will need a complete overhaul
for any AI solution to be deployed. It’s also widely believed
that AI will replace people in their jobs altogether. However,
AI can easily be integrated within existing systems when
incorporated correctly - nor is AI designed for the purpose of
replacing the power of people.
The first step in successfully rolling out AI technology lies
in gradual incorporation and onboarding. There’s no need
for it to be implemented totally and immediately; AI can be
gradually integrated into systems for the purpose of making
decisions. Once employees begin to use the technology as
part of their day-to-day tasks, and when it makes their jobs
easier and allows them to work more efficiently as a result,
these technologies can then be rolled out more widely across
the business.
Once AI has been tested against the ‘power of people’, these
two pervasive myths can be dispelled. At Sprout.ai, our
mission is to empower claims handlers to deliver fast and
accurate decisions to customers. Our technology, like other AI
solutions, is there to enable and enhance, rather than overtake
people. Clunky administrative parts of insurance jobs, such
as policy checking and data extraction in claims processing,
can be handed over to AI so that claim handlers are able to
refocus their efforts on providing the best customer service
to their customers at a time when they’re most vulnerable.
The potential for AI; Innovating through
automation
The majority of insurance companies are driven by providing
the best customer service at the most effective cost. AI is fit
for this purpose - through automating processes, customer
service can be significantly improved, as it gives employees
time to focus on the human aspects of their jobs.
Generative AI technologies, such as ChatGPT, can be utilised
to help insurers improve customer service and address
pain points such as claims. Today, ChatGPT functions as
a consumer-facing ‘chatbot’. Some experts predict it will
supersede Google search as the default search engine for
consumers. In this current form, ChatGPT can’t be utilised
by insurance companies effectively, but many insurtechs
are harnessing these foundational technology models and
applying them to specific commercial use cases.
MODERN INSURANCE | 9

SHAPING THE FUTURE OF
SUSTAINABLE MOBILITY
Take charge at europcar.co.uk/business
or call 0371 384 0140

INSIGHT
Improving AI accuracy
One of the problems with current generative AI models
is that they’re prone to ‘hallucinating’. In other words, the
technology has high error rates and is too unreliable to use
in a business setting.
Whilst error rates will improve over time, the model requires
adaptation to provide increased accuracy in decision
making. For example, our Data Scientists at Sprout.ai are
focused on training AI models specifically for the insurance
claims world - creating dedicated models that are specific
to this domain, providing accurate results and fewer errors
than a claims handler would.
We harness the power of generative AI to generate training
data, ‘teaching’ our AI by creating synthetic claims and
policies. For end customers, failing to get this right can
have wide-reaching consequences. If an insurance claim
is processed inaccurately, for example, the insured may be
paying too much or liable if paying too little.
The bias question
Close attention must be paid to the ethics of incorporating
AI models like generative AI, in order to ensure that biases
against race and gender are avoided.
As AI models learn based on examples, bias is certainly a
potential problem. The technology might ‘copy’ the biases
of those people training it, or even make it worse. To solve
this, it’s vital to train AI in such a way that avoids the
possibility of creating bias, such as not providing this data
on gender, race, or a customer’s address. By utilising AI in
this way, insurers can innovate to provide the best customer
service and quick, optimal decision making.
We know that emerging technologies such as generative
AI can be deployed in insurance, having hugely powerful
and positive consequences for insurers and end customers.
For insurance companies, AI can drive growth and improve
efficiencies. For end customers, it can solve long-standing
pain points associated with either buying or claiming
on their insurance policy. While the boundaries of this
technology are still only just being discovered, legacy
insurers that fail to explore its potential will be left behind in
an increasingly competitive industry.
Roi Amir,
CEO, Sprout.ai
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MODERN INSURANCE | 11

INTERVIEWS
The
Friendly
Hacker:
In Conversation with
Keren Elazari
Modern Insurance Magazine sat with Keren Elazari, Cyber
Security Analyst, Writer and Speaker, to discuss the risks
and benefits of Artificial Intelligence. To what extent are we
exposing ourselves to cyber risks in our homes and businesses
by embracing this technology, and how can we take extra
precautions to protect ourselves from these threats in an
increasingly digital world?
12 | MODERN INSURANCE

INTERVIEWS
Hi Keren, thanks so much for your
time today!
Q
You have advised and worked with
Fortune 500 companies, leading Israeli
security firms and Governments. You are
also an author and TED speaker. With so
much experience under your belt, what is
the most important factor that you would
ask your clients to consider when looking
at cyber resilience - given that Artificial
Intelligence capabilities continue to
innovate at rapid speed?
AThe number one thing that needs
to be top of mind right now is
trust. How can we trust not just
our networks, applications and computer
systems, but also the advent of generative
AI capabilities? AI model tools are able
to fabricate and synthesise not just text
but images and videos too. They can
really create doubt - not just in terms of
what is true and what is false, but also in
relation to our perception and verification
of information and identity. Cybersecurity
has always been about trust, and this is
something that I continue to advise in my
interactions with clients. It’s not about
secrecy! It’s not about your credit card
numbers or privacy settings on social
media accounts. All of the discourse around
secrecy is just one part of the story of trust
in digital systems.
AI can offer incredible new capabilities - it
can be a fantastic new tool for productivity
and creativity in business and our daily
lives, the next stage of human efficiency.
But it also casts a big doubt on my mind.
It requires a huge amount of cognitive
diligence to verify identity, transactions
and information in order to trust what
our devices are showing and telling
us. Everybody can use AI technology
nowadays - it’s been democratised, and
therefore the cognitive burden is really on
us as consumers to be questioning this.
How can we trust what we’re seeing?
The answer to this question is not yet
known, and whilst the technology is there
to help us achieve that trust in some way,
we need to proactively make the choice to
use it. We need to implement and invest in
these capabilities. Security is not a waste
of time, nor is it a ‘cost of doing business’,
a ‘necessary evil’ or designed to create
friction. This mindset needs to change as
we respond to the advent of the latest AI
capabilities and the continued evolution of
cyber threats.
QAre businesses with cyber insurance
policies more attractive targets for
cybercriminals?
I’d say that if a company or business
goes to the trouble of taking out a
A cyber risk policy, they’re perhaps
more mature in their security journey, and
therefore more aware of the risks out there
and perhaps less likely to be the successful
target of an attack. Their risk management
strategies and security practices are more
likely to be robust, as opposed to the
company who is lacking in the presence of
mind to prepare and protect themselves
against cyberattacks through taking these
additional, proactive measures.
That being said, many organisations will
experience a security incident and not
necessarily notify their insurance providers,
so it’s hard to know the full scope of
the issue. Correlation does not imply
causation! Certainly where ransomware is
concerned, I do know that cyber attackers
will particularly target companies who
have the money to pay. The bigger the
target, the better. There’s also geo-political
motivation around ransomware attacks;
many operators are based in Russia, and
particularly since the Russian invasion of
Ukraine, we know that they have amped up
operations in support of military factions.
Sometimes they will attack organisations
involved with sending aid to Ukraine, or they
will step up their operations to specifically
target certain military outfits. However, as
a general rule motivations are primarily
financial, and when insurers are able to
harness their data to make decisions based
on fact, I have every confidence that they
will create a policy that appropriately
protects the cyber interests of their
customers.
QWhat will be the greatest form of
cyber threat over the next 1-2 years?
I think it’s going to be a combination
of things. Firstly, we’re going to see
A more of the same. Ransomware, for
example, has been around for a decade
now, and we’ve seen the value of that
ransom escalate into much larger amounts
over time. We’ve also seen ransomware
attackers get away with targeting
businesses and organisations where time is
critical, like hospitals and medical centres
as well as production facilities where every
minute of downtime is immensely impactful.
Sadly, I’m concerned that such cyber
threats will continue to evolve. In some
bold circumstances, we’re even seeing
ransomware attackers recruit accomplices
from among their targets - offering money
to corporate insiders in exchange for access
credential - alongside the emergence of
‘ransomware as a service’, where lower-level
criminals are able to use established ‘cloud
powered’ ransomware platforms to extract
stolen data in exchange for a commission.
We’re definitely going to see more attacks
using automation, AI tools and attacks on
our cognition. Cyber criminals are going to
take advantage of AI tools to create videos,
voice imitations and images. They’re going
to automatically translate their phishing
emails to more and more languages so they
can address a broader audience and raise
fewer red flags, in terms of their language
appearing legitimate and more personalised
to the recipient. It will become so hard to
discern real emails from fake ones, and
attackers will take advantage of any and all
methods that make their lives easier.
I imagine that we will also see more evolved
attacks on identity; not just in the classic
sense but also through the creation of fake
social media profiles and video content of
a person, using those methods to freely
extort and manipulate people. This relates
back to my first point around trust. We
need to be prepared to verify the legitimacy
behind everything we do and receive, and
in order to stay safe, we must be more
conversant with the technologies that help
us ascertain confidence. We really need to
embrace these methods if we are to identify
those blind spots and find out where we are
exposed to cyber threat. It’s much better to
be proactively paranoid than retrospectively
paranoid in these cases, and we need to
move fast to adapt.
QThe use of connected devices is
growing within business and society.
Is this inadvertently leaving our
private safe spaces vulnerable to attack?
AThe adoption of connected devices
has definitely made life easier
for hackers. It has exponentially
expanded the attack surface - which is to
say that these devices, servers and online
assets have significantly increased the
potential for attack. Typically, the cheaper
a product is, the less secure it will be. In
the context of our homes for example,
we’re talking about baby monitors; smart
home devices that connect to our mobile
phones – not to mention home personal
assistants like Alexa. Not all of these things
are vulnerable or insecure, but a great deal
of them are. We now have to become the
Chief Technology Officer of our own homes;
nobody else is going to make sure that our
passwords are strong, or that our software
is up to date and our vulnerabilities are
patched!
In your opinion, are we making the
most of friendly, or ethical, hackers?
Q
AThankfully, yes - more and more,
we are. Just like the friendly
microorganisms and bacteria in
our immune system, friendly hackers help
our immunity when it comes to cyber
risks. We constantly identify new software
vulnerabilities, and new ways to use
technology which might otherwise be used
against people in malicious ways. We are
fuelled by curiosity and finding unexpected
purpose in technology. Friendly hackers
are really talented at discovering those
unforeseen uses; things that the person who
invented that technology probably never
even thought of. This is an area in which we
absolutely need friendly hackers.
Research I conducted as part of my degree
at Tel Aviv University Cyber Centre showed
that even very large companies will still
end up working with individual hackers
annually, paying them ‘bug bounties’
and rewards for the vulnerabilities that
they discover. Governments and large
organisations all around the world recognise
the value of bug bounty programmes and
friendly hackers. We’re at a point where
some of the largest, most innovative and
competitive organisations in the world now
have access to some of the best hacking
talent in the world. It allows this talent to
be part of the positive, productive global
security workforce, instead of using their
skills against people as cyber criminals.
I’m incredibly optimistic about the future
of friendly hackers, and the way that our
talents will continue to be harnessed over
time.
QWith this in mind, how can AI be
used positively to thwart cyber
criminals?
AWell, security companies have used
artificial intelligence and machine
learning models in their defensive
technologies for years. In the security
industry nowadays, we really want to
collect and monitor more data, and for a
human being to do such a gargantuan task
is virtually impossible. It’s becoming very
difficult for human beings to make sense
of it all, so this is an area where AI and
automation can really help.
These models are enhancing the capabilities
of human intelligence and separating the
wheat from the chaff. Insights, analysis and
intuition are the human skills that work well
alongside such positive uses of AI in our
fight against cyber criminals, and ideally,
we’ll see more AI-powered, enabled and
assisted security centres too. We’ll also
see security professionals with specific
expertise in working with these tools, using
AI and machine learning technologies to
their benefit.
In a similar way, we discussed the cognitive
burden on us as human beings, around
the concept of trust and verification when
it comes to AI. This is another area where
ironically, I think we’re going to see more
automation and AI models actually help
us. Maybe one day soon, we will be able
to delegate that job of being the Chief
Technology Officer of our own home to
an AI assistant! We just need to be able to
trust the technology first, before we blindly
welcome its potential benefits and risks into
our homes and businesses.
Keren Elazari,
Cyber Security Analyst,
Writer and Speaker
MODERN INSURANCE | 13

FEATURE
Digital Footprints
and the Tale
of Pandora
Lots of insurers are looking at how artificial intelligence
could transform their business. Products, processes,
services – they’re all being revisited. Fuelling this
trend is the public’s ever growing digital
footprint, and a firm’s capacity to acquire
and store that data.
What AI does is turn that data into insight. Yet for all its potential,
AI is not without risks. For example, you can analyse the data in
images, writing and voices, but it would be dangerous to do so
without understanding the risks. At the moment, some pretty
big risks are being signalled for such technologies.
“Well, everyone else is doing it, so why not us too?” is an oft
heard quote in technology and business circles. The danger is
that it can blind you to those risks. Let’s consider one particular
collection of technologies and the issues associated with them.
First, sentiment analysis. This looks at what we write and say
online, and what meaning can be read into that. Second, emotion
analysis, which looks at what our online activity signals about
what we are feeling, the moods and emotional attachments we
have, and what that might say about us. And third, behavioural
biometrics, which brings together a variety of data sources to
track how we are likely to behave and again, what meaning can
be read into that.
All About Character
Analysis like this aims to establish what sort of character we
are, and how we feel about certain things, in certain times and
in certain contexts. And most importantly for insurers, what we
might then do as a result.
These technologies are at various stages of development and
use within the UK insurance market. Some, like voice analytics,
have been around for several years and are well embedded into
functions like claims and counter fraud.
Insight into our character is valued by insurers on several levels.
Underwriters look for signs of moral hazard. Claims people look
for signals about the nature of the claim. Counter fraud people
use it to identify the dishonest customer as early in the insurance
lifecycle as possible. And marketers associate character with
when and why we look for cover.
14 | MODERN INSURANCE

FEATURE
Warning Lights
It all sounds very innovative, but is it? Take these words from
the Information Commissioner’s Office back in October 2022:
“Developments in the biometrics and emotion AI market are
immature. They may not work yet, or indeed ever.”
“While there are opportunities present, the risks are currently
greater. …we are concerned that incorrect analysis of data could
result in assumptions and judgements about a person that are
inaccurate and lead to discrimination.”
“As it stands, we are yet to see any emotion AI technology
develop in a way that satisfies data protection requirements,
and have more general questions about proportionality, fairness
and transparency…”
That represents a big flashing warning light to businesses about
these technologies. In a particularly damning comment at the
time, the Deputy Commissioner of the ICO said the only use he
could think of for these technologies in a business setting was
as a game at the office party.
Show Your Workings
So what is the ICO going to do about it?
“The ICO will continue to scrutinise the market, identifying
stakeholders who are seeking to create or deploy these
technologies, and explaining the importance of enhanced data
privacy and compliance…”
What they’re saying here is that they intend to use their powers
to make firms using these technologies ‘show their workings’.
They will want to see how the firm has set the scope and depth
of purpose for which they’re using these technologies.
They will want to see how the risk assessment has been carried
out - again in terms of the scope and depth, but also what
controls have been created as a result, how are they being used,
how this is being overseen, and what evidence is there for the
controls having the intended impact?
These ‘workings’ shouldn’t just cover privacy. You can see from
the quotes above that they should also encompass things like
fairness and discrimination. Remember that insurers can use
special category data in certain circumstances, but conditions
apply. Insurers need to show how they’re managing those
conditions.
The ICO will also be interested in how the insurer has weighed
up the science underlying these technologies. Some of that
science is highly contested. Has this been factored into the
insurer’s risk assessment?
A Classic Ethical Dilemma
What we have here is a classic ethical dilemma. On the one
hand, we have honesty (for example, in relation to tackling
fraud). On the other hand, we have fairness (using technologies
that work, in ways that are fair).
The ICO will want to see how well the insurer has been
managing that ethical dilemma. Are the judgments being made
based upon the right information? Are reasonable conclusions
being drawn? Have they been documented so that others can
understand how they’ve been made, and so permeate them
across their own work?
You could see this ethical dilemma being played out in real time
back in 2021, after Lemonade said on Twitter that it was using
facial recognition technology in its counter fraud work. Within
a few hours, they were saying that they’d been misunderstood,
that they wouldn’t do something like that, that they were good
people. Unfortunately, not everyone was convinced.
A Pandora’s Box?
Insurers are looking to such technologies to offer new lines
of insight, and hence new sources of competitive advantage.
Could they instead do the opposite?
Consider Pandora, a character from Greek mythology. She
found a box, thought it was a gift, opened it and unleashed
six curses upon the world.
Could certain technologies, to
paraphrase Greek mythology,
bring a curse down upon the
insurers who use them? It’s a
big statement, but then, there
are big concerns being raised
about sentiment analysis,
emotion AI and behavioural
biometrics.
Duncan Minty,
Independent Ethics
Consultant and Chartered
Insurance Practitioner
MODERN INSURANCE | 15

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EDITORIAL BOARD
Checking in with
the OIC Portal
The OIC Portal was introduced in May 2021
on the back of the Whiplash reforms, which
were originally intended to reduce fraudulent,
exaggerated and low value injury claims - with
consequent savings passed onto consumers.
Optimistically, claims were expected to be easy to run - meaning that
individuals (Litigants in Person) would look after their own claims
- and a ‘do it yourself’ portal (OICP) was developed. The Claimant
industry was vocal from the outset around concerns that uptake
would be marginal, and the portal should be developed with both
LiP’s and professional users in mind.
The manual portal for LiP’s has generally worked adequately, if not
well. However, the vast majority of claims are run by pro-users facing
a mountain of challenges, with close to 30 releases within the first 18
months. Carpenters Group invested in a dedicated team and spent
significant time planning before any development started. However,
like all other pro-users, we started on the back foot.
We have also had to build many work-arounds due to technical issues
with the portal - some of which have since been corrected. However, a
process that should take seconds A2A can take 40 minutes manually.
This brings the sustainability of an operating model without A2A into
question – and whilst there are a small number of firms who have
made progress, a greater number have been unable to make it work,
exiting the sector as a result.
How is the OICP performing now?
We have engaged with the MIB from the outset, and they have
certainly become more collaborative in accepting the existence of
problems and resolving them accordingly. Our dialogue with the OIC
team at the MIB has also improved, which has allowed Carpenters
to have more open discussion about their platform and provide
feedback on new releases, alongside any issues with the core
functionality.
Although there is still more to be done, we have seen steady but
much needed improvement with the performance of OICP and A2A
solution over the last 12 months. However, we are concerned that
the MIB’s roll outs are being scheduled to occur bi-annually, with no
cross-industry control group to police the changes made.
What improvements still need to be made?
The OICP need to view their A2A solution and their LiP Portal solution
as two separate products. Although they can and will both capture
the same information, how each product communicates internally is
an area of improvement/change.
One other area for improvement is error handling for pro-users.
Whilst we have an IT team who can respond to this, we are still seeing
errors on the OICP years down the line.
Alan Hayes,
Chief Legal Officer,
Carpenters Group
Karen Campbell,
Chief Information Officer,
Carpenters Group
Automation Goals in the
Consumer Journey
Many companies want to strike a balance
between automation and human input in order
to enhance the customer experience. Going too
far can make customers feel like they are not
being heard, while too much human input can
be expensive and may slow down the overall
consumer journey.
It is also important to acknowledge that some of your customers
may not want or be able to engage in a totally digital way. Yes,
demographics and behaviours are changing, and as a society we are
evolving to become more ‘tech savvy’. However, when it comes to an
insurance claim, it becomes even more important to get that balance
right.
Automating repetitive tasks such as document reviews, email
processing, estimate reviews and payment processes can save time,
and allow employees to focus on customer-facing tasks where their
expertise proves invaluable, and where that human connection can
make a real difference.
In the claims process, obtaining all of the information needed about
a claim can be time consuming, and at times frustrating when there
are multiple organisations involved in a claim. Here, automation can
not only save you time and money, but it can also create a better
customer experience.
Start as you mean to go on. Providing an efficient digital FNOL
experience using AI and Natural Language Processing (NLP) can
guide the customer through process of inputting the information
needed to deal with their claim. This creates the opportunity for
Straight through Processing (StP), as well as instant triage in real time
to direct the claim down the correct route or to the correct supply
chain partner. This will not only create a better customer experience,
but also help control indemnity costs / leakage.
Computer Vision AI also creates the opportunity to automate
many claim tasks. With this technology, you can identify the nature
and scope of damage, alongside the materials or items needed to
generate accurately priced estimates.
Of course, customer choice is key. It’s important to build a process
that allows a customer to come away from an automated experience
when they need to. Allowing a customer to offramp and speak to
a human being is vital. However, that claims handler then needs to
have all the information ready and waiting to minimise customer
frustration.
At Crawford, our Technology + People approach ensures that the
balance between automation and human support is maintained. From
our Digital Desk FNOL provision, to our Asservio estimate review
service and investment in AI/computer vision technologies, we want
to create new and exciting service offerings whilst supporting and
enabling our vast array of technical experts in ways that facilitate our
mission to restore lives, businesses and communities.
Phil Price,
VP Loss Adjusting Technology, Crawford & Company
MODERN INSURANCE | 17

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EDITORIAL BOARD
Balancing Automation
with Human Input in the
Consumer Journey
While automated processes can reduce
human error and create greater efficiencies,
automation does not need to be at the cost of
personalisation, particularly at the claims stage.
A digital claims journey may offer speed, efficiency and simplicity,
but this alone is unlikely to bring the customer back at renewal. It’s
important to build trust to build brand loyalty - and trust is built when
the claimant feels that their needs are understood and that they are
being valued as a customer.
Making that experience real comes down to personalisation. We
can do this through leveraging data to fine-tune customer journeys,
communications and interactions based on the needs of that individual
customer, for that particular claim and at that particular time. This
offers a big step forward from just pure automation - creating an
improved customer experience that enables human skill to be used
when the situation dictates, such as in the case of complex claims.
Creating the single customer view falls at the centre of this, so that
insurance professionals can understand all past engagement with the
individual immediately within any part of the business, using solutions
such as LexID® for Insurance.
Questions in the claims process can then be tailored to the individual
and their policy. This might remove the need for customers to enter
information into a claims notification app or an online claims form,
data that the insurance provider should already know - or indeed,
could know - through the use of external data sources.
For example; if a claims handler in a motor claim knows how a vehicle
is fitted from an ADAS perspective, they can route the vehicle to the
right repairer with the required skillsets from the outset. They might
also be able to determine that the vehicle passed its last two MOTs,
has 25,000 miles on the clock and a current re-sale value of £17,000.
This type of granular data can build a much better understanding of
the vehicle to help expedite the claim.
This is not only more efficient, but it also makes it possible for
non-specialist staff to process claims. Importantly, it enables a fair
valuation of the vehicle by taking current market rates into account
for a very similar vehicle, helping to build customer trust and brand
loyalty. Personalisation may seem opposed to the need to increase
efficiencies – yet opportunities can be determined by leveraging data,
so that claims teams can work at scale. Meanwhile, they can still offer
a personalised service from the perspective of the customer. Most
importantly, it allows them to focus their human skills on delivering the
expertise needed for certain cases, along with the human touch that
can make or break a crucial decision around renewal.
Martyn Mathews,
VP, personal and commercial lines, LexisNexis Risk Solutions,
Insurance, U.K and Ireland
Consumer Duty needs to be at
the heart of a reformed GTA
These are uncertain and challenging times
for all companies working in the fulfilment of
motor claims, whether they’re a large insurer
or a mid-sized accident management group
like EDAM. It’s never been more important to
work together to remove the friction and poor
practice which has resulted in an uncertain
customer experience, alongside a heap of
unnecessary costs for all involved.
To try and achieve that goal, it has been widely reported that the
CHO and insurers are working together to update the General Terms
of Agreement (GTA). This new spirit of co-operation, alongside a
willingness to step back from entrenched views and agree a way
forward, is hugely welcome in very challenging market conditions.
As we continue with the more detailed elements of our conversation,
it’s imperative to plant our mutual obligations to the customer in the
centre of those discussions. The new Consumer Duty standards spell
that out more clearly than ever.
Over 80% of all referrals for Credit Hire services come directly
from insurers, brokers, or MGA’s. The services provided by CHO’s,
like EDAM, are now a staple part of the claims supply chain for
customers who find themselves the victim of a car accident that
wasn’t their fault. This is a point which often gets lost once the service
commences and when the recovery of incurred costs begins.
When we look to reform the GTA framework, we must collectively
take the opportunity to place our mutual customer front and centre
in this post-hire period. It is this claims settlement period where those
historical entrenched lines between CHO and insurer create much of
the cost and friction for both sides; but more importantly, it is where
the customer finds themselves caught in the middle.
If we take the Consumer Duty as our new benchmark, I am positive
that the CHO and the insurers will find a way to make the reformed
GTA a true example of how an industry can come together to find a
solution that supports customers, removes friction and lowers costs
for all concerned. The alternative is more of the same, and the MOJ
have already made their views clear that the status quo is not an
option. We have been warned.
Simon Gallimore,
CEO, EDAM Group
MODERN INSURANCE | 19

EDITORIAL BOARD
The Day the Industry
Moved Forward, Together
What an inspiring couple of days we’ve had
at the Kinetic conference, with key speakers
representing insurers, manufacturers, and key
suppliers. The message at Kinetic was clear
from the start; a strong focus on collaboration,
joined-up thinking and the need to move
boundaries in order to face the challenges
and opportunities of the automotive industry
as one.
Supported by two arenas of exhibitors and sponsors from the
automotive supply chain, Kinetic brought together the very best
of the industry, showcasing the latest products, services and
personalities. To demonstrate the overarching theme of collaboration
and to embrace all elements of the industry, Vehicle Manufacturers
were also present in abundance, providing a great presence and
bringing their latest technologies to showcase BEV, hydrogen and
digital capabilities. There was also a nod to nostalgia at Kinetic, with
classic models on display by industry enthusiasts. All of this went
further to demonstrate the huge leap in our use of technology and
materials over the years.
We need to believe in our power as repairers and suppliers, a power
which can reshape the automotive and repair industry into one that
works for everyone. We must stay focused on all of our potential, both
as individuals and as a collective industry, to make change possible.
What we do now, together, will shape what happens next.
This year’s event was bigger and bolder than ever before. Did it
deliver? We genuinely hope so - and based on your incredible
feedback, we believe it did. But we are always keen to improve, so if
you were in attendance at the conference and you haven’t already
done so, please take a moment to complete the feedback and share
your thoughts via our online feedback form.
Everyone at Vizion would like to thank our speakers, sponsors,
exhibitors, partners, and of course all delegates in attendance, without
whom none of this would have been possible.
Chris McKie,
Managing Director, Vizion Network Limited
Vulnerable Customers,
AI and Fraud
When we talk about automation in the
investigation of fraud cases, we always
remember that it is crucial to have a human
input—especially when dealing with vulnerable
consumers.
Through automation, you can streamline repetitive tasks, reduce
human errors and save costs. Our databases have proven key in such
tasks. Additionally, AI systems offer a way to analyse customer data
with insights that can better inform your business decisions—leading
to more personalised recommendations for customers or clients.
However, automation and AI are not meant to replace humans.
Instead, they’re meant to complement our workforce by handling
complex issues that may otherwise be difficult for humans to deal
with—and build trust and rapport with customers on an emotional
level.
AI is extremely valuable when it comes to the early stages of a claim,
especially those involving an individual making genuine efforts to
seek compensation. However, we do feel that when it comes to
vulnerable consumers, there must be a process that still heavily relies
on the human element when dealing with the investigation of a claim.
As we know, the FCA has placed great emphasis on providing
good outcomes for customers and protecting those that are most
vulnerable. Under the Consumer Duty, the FCA will increasingly be
asking for data focused on consumer outcomes with the fair treatment
of vulnerable customers high on their checklist. Therefore, insurers will
need to maximise the oversight of all their customer interactions, with
a particular focus on how they are assessing vulnerability.
It’s clear that data analysis and artificial intelligence are already playing
a role in reshaping the way that insurers and other companies offer
support to vulnerable consumers. As more regulatory frameworks
around customer service emerge, these technologies may very well
help them take shape. Determining vulnerability and appropriate
support is a very human judgment, yet the use of data—segmenting
customers by their behaviour patterns in order to direct customer
support teams to where they’re needed most—can help spot potential
issues before they become problems.
In conclusion, it’s clear that you should never rely on a fully automated
process and to do so could affect your overall consumer journey.
We should never underestimate the resolve of fraudsters, who
exploit weaknesses in fraudulent activity that can bypass detection
measures—including AI. This raises important questions about whether
or not organisations have been able to detect every type of fraud
committed so far.
Sarah Glenn,
Commercial Director, RGI Solutions
MODERN INSURANCE | 21

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EDITORIAL BOARD
Fraud and the Metaverse
Fraud has been a problem for society since the
dawn of civilisation, and the use of technology
to commit fraud has increased with both the
widespread adoption of digital communication
and the evolution of the internet.
As a result, technology has facilitated new methods of fraud - such as
phishing, identity theft and online scams. Phishing is a relatively new
form of fraud, where criminals trick victims into giving up sensitive
information such as passwords or credit card numbers. Similarly,
identity theft has become a significant threat due to the amount
of personal information available within the public domain, mainly
through social media channels.
Online scams are another type of fraud which became prevalent due
to the ease of communication and transactions offered by technology.
The ability to impersonate other people or organisations online has
allowed scammers to make their frauds seem more legitimate to their
victims. Scammers use social media, email and online advertisements
to trick people into sending money or purchasing fraudulent products.
While technology has created new opportunities for fraud, more
positively it has also enabled more efficient and effective ways of
detecting and preventing it. Digital records and data analytics can be
used to monitor financial transactions in real-time, making it easier to
identify suspicious activity. The use of digital identity verification can
also help companies and individuals when it comes to confirming the
identity of users online, reducing the likelihood of impersonation or
identity theft.
Equally, advances in artificial intelligence (AI) and machine learning
have allowed firms to identify patterns in large data sets - including
those created by fraudulent activity - leading to a significant
improvement in the accuracy and efficiency of fraud detection
algorithms. Blockchain technology also has the potential to create
a more transparent and secure system for financial transactions,
preventing fraud through the use of cryptography and shared ledgers.
However, ethical considerations must be taken into account when
using technology to fight fraud. Privacy is a significant concern when
it comes to the collection and use of personal data for fraud detection.
Inappropriate access to data could lead to a violation of personal
rights and the potential misuse of information.
Furthermore, the use of facial recognition to prevent fraud has
elevated concerns about racial profiling and the accuracy of the
technology in distinguishing between individuals of different
ethnicities. These concerns pose a significant ethical dilemma, and
firms must be transparent about their use of technologies and their
impact on individual privacy and civil liberties.
On the whole, technological advancements in AI, data analytics
and blockchain technology promise to transform anti-fraud efforts,
holding great promise for reducing the impact of fraud on individuals
and our wider society. However, this must be carefully balanced with
considerations around ethics and privacy.
Lior Koskas,
CEO, Digilog UK Ltd
Advantages of the
Network Model in the Motor
Insurance Claims Supply Chain
There’s a lot for insurers to consider as they seek
service certainty from their salvage and vehicle
recycling partners, simultaneously increasing
their use of reclaimed parts to control claims
inflation and motor repair costs.
The UK salvage and vehicle recycling market is witnessing
consolidation and uncertainty, with the findings of the latest stage
of the Competition and Markets Authority extended investigation
into Copart’s acquisition of Hills Salvage not expected until the end
of May.
Strength in depth becomes increasingly rare when claims service
suppliers are consolidated into large single entities, greatly
increasing the risk profile of their work with insurers. e2e’s UK
network of salvage and vehicle recycling agents is unique in the
market, and its risk management rules cap maximum exposure
to any one network member at any time. Only e2e has a business
model that insulates the insurer from dependency upon one
supplier, with the increased risk of supply interruption should the
supplier’s operations be disrupted.
The network approach, spreading demand across multiple suppliers
and assets, reduces risk and provides the flexibility and capacity
to cope with surges in demand. These advantageous operating
principles also ensure that network stability is never undermined
in the event that a member is acquired and required to leave
the network. Good governance dictates that risk mitigation and
contingency plans exist for every member of the e2e network;
ensuring seamless service transition in the event of a change
in membership, and uninterrupted adherence to Service Level
Agreements and agreed KPIs with clients.
Insurers are familiar with network models, and many in the building
contractor and motor repair supply chains successfully utilise them.
They benefit from real UK wide coverage and local knowledge, one
management and audit function, multiple sites (to minimise travel
and lead times), diverse sources of investment and ideas, as well as
strength in depth.
Of course, there’s the option for insurers to build and manage their
own networks, but this is costly. Time and resources are needed to
onboard and manage multiple suppliers, information sharing is more
complicated, integration with multiple systems is more complex,
economies of scale are reduced, and quality control and consistency
become more challenging.
Claims inflation is driving huge interest in reclaimed parts, and the
network proposition outperforms the single supplier approach again
in terms of demand fulfilment. e2e network members - all of whom
are certified to the VRA UK Standard for Reclaimed Parts - have
made multi million-pound investments in the extraction, cataloguing,
storage and timely dispatching of reclaimed OEM parts. Insurers
benefit from a combined investment that is diversified, distributed
across the UK and unavailable from one single company. The result is
a huge inventory of quality-graded, warranty-assured and provenance
validated parts, available for delivery in 24 hours.
Jim Loughran,
CEO, e2e Total Loss Vehicle Management
MODERN INSURANCE | 23

EDITORIAL BOARD
Will Artificial Intelligence
ever be fully incorporated?
In the bodyshop industry and wider trade,
technology upgrades are prevalent. Our focus
must be kept on these everchanging industry
improvements to ensure that we are up to
speed and remain best in class.
Over the years, we have transformed our offering to provide
automated estimate repairs and efficient photo-based estimates.
Gone are the days of awaiting physical inspections unnecessarily.
Whilst we are accelerating the use of automation for efficiency and
homing in on our ‘fresh approach to accident repair’, we are not
replacing in-person interactions solely with artificial intelligence - as
some may consider the new era.
As a modern bodyshop group working closely with insurer partners,
we are continuously adapting to new technologies, foremost
improving resource efficiency and the customer experience. Through
this modern technology shift, we can route ‘total losses’ quicker and
save valued space for repairable vehicles. Admittedly, we have seen
a significant rise in efficiency, timesaving, and consistency in using
photo-based applications and automation, providing more efficient
services to our customers overall and enabling us to move faster to
repair vehicles, with a shorter key-to-key time.
Repair estimates are nevertheless complex, and understandably
each site in our domain houses qualified Vehicle Damage Assessors,
with many years of industry experience in multiple departments.
We have invested heavily in Vehicle Damage Assessors and have
even introduced a Vehicle Damage Assessor apprenticeship. The
accreditation held by these individuals covers ADAS calibrations,
reading and interpreting vehicle manufacturer methods, and providing
full, accurate repair assessments within the BS10125 guidelines. Vehicle
Damage Assessors oversee the full repair from the initial damage
assessment through to quality control completion, thus highlighting
the importance of personal administering. We understand technology
has evolved rapidly, but it exposes the question of whether Artificial
Intelligence will ever be incorporated fully into our current bodyshop
structure.
Dave Sargeant,
Managing Director, Gemini Accident Repair Centres
AI and Fraud Detection
Every day, fraudulent claims are made
amongst thousands of other legitimate ones.
Identifying this constant flow of fraudulent
claims proves challenging for any business!
Using AI to detect fraud has aided businesses in improving internal
security and simplifying Counter Fraud operations. Artificial
Intelligence has therefore emerged as a significant tool for avoiding
financial crimes due to its increased efficiency.
If AI systems run around the clock, constantly monitoring the habits
and behaviours of policyholders and claims, the algorithms can easily
flag potentially fraudulent activity and provide real-time alerts when a
claim requires further investigation.
AI can be used to analyse huge numbers of transactions in order to
uncover fraud trends, which can subsequently be used to detect fraud
in real-time. When subsequent fraud is suspected, AI models may then
be used to reject claims or flag them for further investigation - as well
as flagging the likelihood of fraud, which accelerates investigations
and increases accuracy of decision making.
The AI model can also offer reason codes for the transaction being
flagged. These reason codes direct the investigator to where errors
should be looked for, aiding to speed up the investigation.
AI continues to learn from investigators and investigations. When they
evaluate and clear dubious transactions, AI knowledge is reinforced and
trends that don’t lead to fraud are avoided.
‘Actuise Core’ – Robertson’s own fraud detection solution - processes
incoming data and blocks new threats in milliseconds. It is fast and
dynamic which results in outstanding security, instantly highlighting
relationships, patterns, trends, exceptions and abnormalities using AI
and machine learning capabilities.
The more data you feed the AI, the better its predictions become.
Therefore, employees will spend less time reviewing data and
investigating threats, allowing more time for initiatives that drive the
business forward.
AI will continue to revolutionise and transform the insurance industry as
more firms realise the benefits of implementing machine learning and
AI into their operations.
Jason Harris,
Recruitment Services Director, Robertson & Co
MODERN INSURANCE | 25

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EDITORIAL BOARD
Creating sustainability
along the value chain
At BASF, we want to help change the world
for the better. This is what drives us, and lies
at the core of our corporate purpose. We
create chemistry for a sustainable future.
How we act is critical.
BASF’s four corporate values serve as a compass for us worldwide.
Simultaneously, they are an expression of our ambitions and our
shared identity. They define how we want to work together – as a
team, with our customers and our partners – laying the foundation of
responsible conduct and trust-based relationships.
Creative. We make great products and solutions for our customers –
this is why we embrace bold ideas and give them space to grow. We
act with optimism and inspire one another.
Open. We value diversity in people, opinions and experience – this is
why we foster feedback based on honesty, respect, and mutual trust.
Responsible. We value the health and safety of people above all else.
We make sustainability part of every decision.
Entrepreneurial. We focus on our customers, as individuals and as a
company. We seize opportunities and think ahead. We take ownership
and embrace personal accountability.
At BASF, we want to contribute to a better world with enhanced
quality of life for everyone. That’s why we’ve firmly anchored the
three pillars of sustainability – the economy, the environment, and
society – into our corporate purpose, our strategy, our targets, and our
operations along the value chain. They are at the core of what we do -
a driver for growth, and an element of our risk management.
Our customers are at the centre of everything. BASF supply products
and services to around 82,000 customers from almost all sectors
and countries around the world. Above and beyond this, we want
to intensify co-operation with our customers and leverage growth
potential together.
Glasurit®, BASF’s premium paint brand, recently celebrated a
remarkable 40-year partnership with Summers Accident Repair Centre,
a leading family-run business established back in 1946. Summers
Accident Repair Centre now boast a large, modern body shop,
combined with quality products and the skill, experience and expertise
of their well-trained staff to enable the site to deliver consistently high
standards of services.
We want to be our customers’ most attractive partner for all challenges
that can be solved with chemistry. This is why we continue to drive our
focus on customers and their needs. We are simplifying and digitalising
our processes to make the way we work more effective, more efficient,
and more agile. Their satisfaction is the basis for our success.
Dr Natalie Wong PhD,
Marketing & Communications Executive, Automotive Refinish
UK & Ireland, BASF plc
Moments of Truth:
Automation and the
Irreplaceable Human Touch
From online shopping to booking a taxi,
checking the news to learning a language, the
world we live in is increasingly automated. It
may seem that technology reigns supreme,
but there are ‘moments of truth’ in the
customer journey where the human touch is
irreplaceable.
In the world of insurance, one of these moments may be at the start of
a claim, when policyholders need reassurance and clarity to build trust
in the process. This is particularly important to us at Motor Repair
Network, because we deliver accident management services on behalf
of insurers. As representatives for our customers, we know we need to
exceed expectations from the very beginning.
Other key moments of truth occur for more complex cases or
exceptions in the process. Recent data analysis on policyholder
contact preferences showed that after an initial phone call, the vast
majority of policyholders choose to receive claim updates via text
message. In most cases, these updates - coupled with those from
our self-service repair tracker - are all that’s needed to keep the
policyholder informed of progress.
Clearly, updates like this can be automated effectively. However, it is
vital to ensure that we can quickly identify exceptions to the standard
process, proactively stepping in to provide the policyholder with
reassurance that things are running smoothly.
The real power of technology is in automating simple, predictable
processes, and driving accurate decision-making. For us, this is
particularly relevant for repair triage and deployment, where making
the right decision has a significant impact on policyholder experience,
efficiency, and cost control.
Take the FNOL process, for example. We already have an awardwinning
image capture app that makes it easy to upload quality images
and provide a damage description. Add AI-powered damage detection
into the mix, and you could reach an accurate deployment decision in
seconds.
This technology has significant potential in the customer journey.
But it will still take a human to deliver the ‘wow factor,’ guiding the
policyholder through the process and offering what the AI can’t yet
master; genuine empathy.
So while automation is the future and becoming standard across many
parts of the claims journey, we still need expert handlers to support its
delivery and pick up those complex cases where the human touch can’t
be beaten. Every claim and every policyholder is slightly different, and
the empathy and problem-solving power of the human mind can never
be underestimated.
Pete Thompson,
Director of Product, Activate Group
MODERN INSURANCE | 27

EDITORIAL BOARD
“Alexa,
sort my motor claim”
The wonderful world of AI makes almost
anything seem possible, and it’s no surprise
that we’ve become rather fixated. Our brains
have always been hardwired to look for the
next shiny new object. The launch of the
microwave in the 70’s and the Sony Walkman
of the 80’s were met with the same sense of
excitement as the Nest thermostat.
Yet AI just keeps on delivering. We encounter it from morning ‘til
night, to unlock our phones, avoid traffic, add filters to photos
and instruct our lifestyle co-pilot, Siri. AI is omnipresent, working
alongside our human intellect to simplify our daily lives.
In the workplace, AI provides automation, multi-tasking and digital
transformation, removing mundane and repetitive tasks and giving us
the freedom to act with creativity, perception, problem solving and
reasoning. We trust AI to solve our problems, even if we don’t know
what they are yet.
AI promises dramatic change as it becomes more deeply integrated
within insurance. It has the potential to transform every aspect of
claims and underwriting, with analytics, insight and multimodal
policyholder data that predicts and prevents events rather than
repairing them. Indeed, AI has already proven its worth within
claims management, effectively triaging and identifying claims for
automated settlement or potential fraud as just one example.
However, as custodians of our customer relationships, we must
monitor this continuum of intelligence so it doesn’t turn into a
runaway train. We must pause and evaluate the genuine benefits
and value that AI can drive for our customers and our business, and
respect its limitations too.
Perhaps a drone can effectively report a first notification of loss, but
who will empathise and reassure the driver in their hour of need? A
streaming video of vehicle damage may one day be translated into
a detailed loss description and repair estimate, but do customers
want us to remove the human element entirely? Some will, some
won’t - neither are interdependent on the other, and nor should they
be. Customer choice remains an integral part of a satisfactory claims
journey.
To define a successful AI strategy, we need to spend time exploring
these hypothesis-driven scenarios to build a deeper understanding
of AI within our industry. To what extent do we retain control
with algorithmic decision making? Will focusing human claims
management only on those complex claims deliver the savings
we expect? If everyone is doing it, where’s the value creation and
differentiation?
As AI-driven changes take root, how consumers interact with their
insurers will change substantially. Defining the use of AI to support
business strategy will prompt a reshaping of operations, people and
technology, of customer engagement models and profit lines. That’s
why all eyes must remain firmly on value creation.
It’s relatively early days for AI within insurance, and whilst it promises
exciting possibilities, we’ll also need to take extra steps to ensure that
no customer is left behind.
Andrew Chandler,
Sales Director, FMG
The Effects of Consumer
Duty Regulations on
Vehicle Recovery
As the FCA’s new Consumer Duty regulations
are about to take a hold, many companies in
the claims supply chain are being asked about
how they plan to set the higher and clearer
standards of consumer protection required,
and how they intend to put the needs of the
customer first.
It’s probably fair to say that, save for the last few years, roadside
recovery hasn’t been at the top of everyone’s supply chain agenda.
As a result, vehicles would regularly be recovered by the police or
highways authorities at substantially inflated charges, and then ‘lost’
or left in storage for some considerable time.
However, the market has moved on, and it’s now widely recognised
that the recovery agent and their driver are, on many occasions,
the only face of the insurer brand that the customer will ever meet.
Therefore, it’s hugely important that the experts taking the initial call
have undertaken in-depth vulnerability assessments, and that the
attending driver is clear and concise in terms of next steps and their
options around onward transport.
At NWVA, these vulnerability assessments are not new. However, we
recognise that it’s no longer as simple as having young children in
the car, or an elderly person on a country road. Vulnerability is much
broader than that, and it’s a key part of what we do when assessing
recovery needs.
Looking after the customer and not just the vehicle is central to
our assessment process, and a core part of our drivers ongoing
development programme. We recognise that accidents are distressing
enough, and being left with a damaged or undriveable car at the side
of the road only leads to increased stress. Therefore, arrival times and
continual communication with the customer is essential.
To find out how we can help your customers, please contact the team
at sales@nwva.co.uk or by telephone on 01621 730039.
Mick Jennings,
Managing Director, Nationwide Vehicle Assistance (NWVA)
MODERN INSURANCE | 29

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ASSOCIATIONS ASSEMBLE
ASSOCIATIONS
ASSEMBLE
Welcome to
Associations Assemble!
Modern Insurance Magazine is delighted to be
joined by some of the leading names from our
industry associations, organisations and institutes.
This issue voices the thoughts of:
Sue Brown,
Chair of the
Motor Accident Solicitors Society
(MASS)
Anthony Hughes,
Chairman and CEO of the
Credit Hire Organisation (CHO)
John McQuater,
President of the
Association of Personal Injury Lawyers
(APIL)
Simon Murray,
Chair of FOIL’s Technology and Cyber
Liabilities Sector Focus Team and Head
of Business Services at DWF
Andrew Gibbons,
Managing Director of Mason Owen
Financial Services Ltd & Chair of
Industry Claims Working Group (BIBA)
Adrian Jolly,
Head of Strategic Development,
British Damage Management
Association (BDMA)
Dr Matthew Connell,
Director, Policy and Public Affairs,
at the Chartered Insurance Institute (CII)
Mike Keating,
CEO of the
Managing General Agents’
Association (MGAA)
MODERN INSURANCE | 31

ASSOCIATIONS ASSEMBLE
Sue Brown
Title: Chair
Association: Motor Accident Solicitors Society
(MASS)
Stability in the
Personal Injury
Sector
After years of dramatic change, the
personal injury sector needs a period
of stability. The changes that have been
implemented need to settle before further
new procedures are dropped onto the
system.
The OIC has had a big impact on the RTA market, and
many law firms are probably still trying to work out
whether they can continue to operate at such a lowvalue
level of the market. Enter the FRC reforms for
claims up to £100,000, now scheduled to come into
force in October. We have been promised sufficient
time to understand and implement these changes, but
many businesses will not have time to prepare.
As with the whiplash fixed cost tariff, ministers have
once again refused to commit to a regular review of
FRCs, despite the impact of inflation. Unlike insurers,
lawyers cannot simply raise prices, and they are already
working within costs regimes that were fixed a decade
ago.
The steady erosion of the PI legal sector reduces choice
and availability of independent and professional legal
advice for claimants, putting access to justice at risk.
Claims management companies have not been visibly
active in small claims track RTA, but if those without
legal expenses cannot find a solicitor to act for them
in this type of claim, there remains scope for them to
enter the market in future.
In a deliberately light-touch regulatory system - already
lacking the most basic checks - fewer lawyers will mean
even fewer fraud checks. AskCUE PI, for which MASS
fought a long battle, seems to have fallen through the
cracks, not being mandatory in the OIC. Insurers are
starting to raise the issue of fraud in OIC claims, and
we need to work together to address these concerns
within the current
system, rather than
looking relocate the
boundaries and goal
posts.
Anthony Hughes
Title: Chairman & CEO
Association: Credit Hire Organisation (CHO)
AI and Machine
Learning in
Credit Hire
The claims sector has been going through
something of a perfect storm, and the
impact of this 18-month inflationary spiral
in motor claims was clear to see during the
recent annual insurer results round.
Although AI was already finding its place in the
claims process, these current challenges are likely to
accelerate the march of tech in our industry. It’s fair to
say that until relatively recently, claims was a sort of
‘Cinderella service’ when it came to technology. While
sales and business development would benefit from
investment in cutting edge kit - such as enrichment,
data science and machine learning - claims teams were
left in a largely analogue world.
This has all changed in the recent era, driven by
substantial cuts in investment returns and rampant
inflation in the motor claims market. Faced with these
pressures, the challenge is to deliver claims processing
ever more cheaply, and without compromising
customer service. As a result, credit hire companies and
other claims organisations are looking at technology to
provide the answer.
Moreover, the process of digitisation is cumulative. More
solutions come to market as the appetite for claims
tech increases, bringing greater choice and driving
further digital enhancements. In the fight against fraud
for example, credit hire companies have employed
hugely sophisticated tools to protect their assets and
better manage their fleets.
Within operations, robotics are increasingly being used
for repetitive jobs such as document processing, which
enables management to use their
people for the more complex
tasks that require human
judgement. Gen Z typically
prefer experiential tasks
over doing the same
thing every day, and in
the fight for talent, tech
utilisation will become
critical in giving younger
employees a reason to
build a career in claims.
MODERN INSURANCE | 33

ASSOCIATIONS ASSEMBLE
John McQuater
Title: President
Association: Association of Personal Injury
Lawyers (APIL)
Changes to the
Personal Injury
Discount Rate
Any change to the personal injury discount
rate can have a huge impact on seriously
injured victims of negligence. Can they
make their compensation last for life? The
principle that injured people must not be
undercompensated is the cornerstone
of APIL’s position on a proposed dual or
multiple rate, which would be set according
to the duration of an injured person’s life.
It is also the subject of a Ministry of Justice
(MoJ) call for evidence.
The idea of a dual discount rate is based on the
supposition that the longer an investor is prepared to
invest their money, the more risk they can take - and
they can therefore expect better returns. But their
compensation is often all the money that people with
life-changing injuries will ever have. Injured people are
not ordinary investors and are inherently risk averse,
something which the MoJ fails to recognise.
Even under the current single rate, one third of
claimants are expected to be unable to meet 100
per cent of their financial losses, according to the
Government Actuary’s Department. There is no perfect
solution. More could be done, however, to increase the
uptake of periodical payment orders (PPOs) which
provide regular payments to enable severely injured
people to meet their needs, particularly in relation to
care. PPOs do not carry the risks posed by inflation
and tax, making them meaningfully advantageous over
lump sum compensation payments.
But in a 2020 survey, 88 per cent of APIL members
reported difficulties when obtaining a PPO from an
insurer. This is despite more than half of seriously
injured victims of negligence preferring to receive
some or all of their compensation in the form of a PPO,
according to a 2021 YouGov
poll
commissioned by APIL.
Simon Murray
Title: Chair and Head of Business Services
Association: FOIL’s Technology and Cyber
Liabilities Focus Team, and DWF
AI capabilities
stretch beyond
its novelty value
This brief article on the subject of AI
cannot hope to even scratch the surface
of the topic. This area of technology
engenders debates ranging from
information security to ethics, socioeconomics
to ESG, and many other areas
in between. Each of these debates has
already justified entire books in their own
right.
AI, and in particular large language generative AI such
as the Microsoft funded GPT4 by OpenAI, is very
much a topic de jour. There’s a lot of hype around AI
at the moment, and whilst the latest generation of
generative AI certainly has its limitations and blind
spots, the capability of this technology has the potential
to fundamentally alter the delivery of many services,
including those in the insurance sector.
The commercial potential of AI is reflected in the level
of investment being made by “Big Tech” companies
around the world. Between January 2019 and March
2023, almost 50% of Apple’s M and A targets were AIrelated.
In the same period, almost 35% of Microsoft’s
VC/PE investment fell to AI-related companies.
What this means in monetary terms is that Alphabet,
Amazon, Apple, Meta and Microsoft’s spending on both
investment and R&D in AI increased from circa $50bn in
2013, to almost $400bn in 2022.
This level of investment shows no signs of slowing down.
If anything, it is set to accelerate as AI is deployed in
further products, such as Microsoft’s Co-Pilot which
featured in some elements of their Office suite.
Practically speaking, whilst caution is wise when
including AI within your system design – some of the
errors AIs can make are
both disconcerting and
humorous in equal measure.
With appropriate guardrails
in place, there is now a
genuine broad use-case for
AI beyond its mere novelty
value.
MODERN INSURANCE | 35

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ASSOCIATIONS ASSEMBLE
Andrew Gibbons
Title: Managing Director and Chair
Association: Mason Owen Financial Services
Ltd and Industry Claims
Working Group (BIBA)
Insurtech Success?
The distribution of personalised products
via the internet has created a market
where 80% of private lines business is now
transacted through aggregators. When
distributing insurance however, it seems
that profitability is just not being achieved.
High advertising costs - largely funded by insurer
models - mean that desired results are not really being
produced, other than perhaps in achieving market
share.
If technology is enabling reduced friction in transacting
business, but without resulting in profit, is it really the
best long-term solution for everyone? Investment in
technology is extremely expensive, and many of the
smaller brokers operating in the insurance market
would find it almost impossible to develop software
which could facilitate their business to this level.
It is well understood that smaller brokers who use
proprietary software houses to facilitate e-trade
can often find their chosen insurers selling the
same products cheaper on their own extranets,
enabling them to make quicker savings on the cost
of distribution, change rates and terms. Therefore,
smaller brokers might seek to use their back office
proprietary software as an enabler to facilitate their
business models. But personalisation of the software
provided by their supplier can be restrictive for future
development.
Such restrictions are a challenge that we do not seem
to see in other industries, where the use of APIs allows
for simple and swift exchange of information to make
the transaction of business better. While there are clear
successes in the insurance technology space, we should
perhaps look to the example set by others, which has
demonstrated the role of true connectivity when it
comes to improving
productivity and
reducing cost.
Adrian Jolly
Title: Head of Strategic Development
Association: British Damage Management
Association (BDMA)
The Future of
Damage and Claims
Management
The British Damage Management
Association (BDMA) is a not-for-profit
organisation offering both individual and
corporate memberships. The organisation
currently has over 2700 members.
The BDMA is the certifying body for damage
management professionals. The Association sets
standards and provides training and accreditation
for not just practitioners, but others across the wider
insurance sector as well. These members are generally
involved in the recovery and restoration of damaged
properties following the operation of insured perils. The
organisation is committed to ensuring that members
and member companies promote best practice and
uniform service delivery in relation to restoration
and repair after damage occurs to residential and
commercial properties.
In line with the rest of the UK, the Damage and Claims
Management sectors have had a turbulent last 3 years.
As we return to a ‘new normal’ after the pandemic,
we are reminded once again of the equally significant
issue of climate change. Ours is an industry that tackles
two sides of the coin – we are the ones who respond
to the damaging outcomes of extreme weather events
caused by environmental change, and we are the ones
who must choose damage limitation and stabilisation
methods that will allow us to protect our natural
resources and environment long into the future.
Sustainable best practice and a drive towards carbon
neutrality and ‘net zero’ are at the forefront of current
thinking in relation to modern house building. There
are many different types of modular construction in
both the residential and commercial sectors. Yet the
varying specifications and types of materials used bring
new challenges to claims and damage management
companies when these buildings are damaged by water
and fire. The industry is
certainly having to evolve at
a very rapid pace to meet
these changes, and the
future is certainly destined
to be an interesting one for
all of us involved!
MODERN INSURANCE | 37

ASSOCIATIONS ASSEMBLE
Dr Matthew Connell
Title: Director, Policy and Public Affairs
Association: Chartered Insurance Institute
(CII)
AI will not
displace the
need for claims
professionals
To my profound satisfaction (and after
using Microsoft Outlook for more than
five years), I’ve finally discovered a way to
have my calendar and my inbox open in
separate windows at the same time.
Given that this is my standard level of engagement
with technology, I tend to assess its potential using a
historical perspective. The radio did not displace print
media altogether, for example. Newspapers are still the
most satisfying way to do a crossword on the train, and
you can’t light a fire with a pair of earbuds.
Similar things are true in insurance. AI has been in use
for several years in motor claims to check damage on
vehicles, but it hasn’t displaced the need for claims
professionals. It has simply freed them up to work on
more complex claims, where subtle and fundamental
damage still needs astute human inspection.
It’s a similar story with chatbots and the muchdiscussed
development of ChatGPT. There’s no doubt
that much writing is mechanical, and chatbots will
be able to take on many of these tasks. However, a
close reading of text produced by ChatGPT shows
that it is very good at compiling lists, but not so good
at prioritising them. It can create a plausible list of
causes behind the French Revolution, but would be less
reliable at organising this list into a coherent argument
about how these causes interacted with each other.
The use of such technology has as much to do with our
ability to understand their potential as it does with their
capacity to create change. Even the invention of the
wheel didn’t have a huge
impact in every society!
AI will fill the gaps
between the things only
people will do, but I am
confident that it will not
replace them altogether.
Michael Keating
Title: CEO
Association: Managing General Agents’
Association (MGAA)
Our Future
Depends on DE&I
Diversity, Equity and Inclusion (DE&I)
is a real hot topic in our industry at the
moment, and for good reason.
Insurance has had a long-standing problem with
attracting and retaining diverse talent, and looking
at ethnicity alone makes for grim reading. Recent
research shows that only 3% of senior positions in the
UK insurance sector are currently held by individuals
from ethnic minority backgrounds. This is a common
theme across all areas of diversity, including gender
and sexuality, and as many businesses start to sit up
and take notice, we must do more to address this issue
as a collective industry.
Diversity should be at the core of what we do;
particularly in the MGA space, where so much of
our work is around driving innovation and change in
the wider market. The benefits of diversity are clear.
Having a diverse team not only improves the working
culture of a business - it also offers access to a variety
of different, sometimes challenging, ideas. A team of
talented individuals with diverse cultural backgrounds
is one that is likely to be more innovative and more
thoughtful, providing a more rewarding working
environment and ultimately delivering improved
business performance.
The carrot is better outcomes. The stick, as always,
is regulation. DE&I is now high up on the regulatory
agenda, with the FCA taking a clear stance that
the insurance industry must do more to improve
the situation. At the MGAA, we also recognise the
importance of DE&I for the future of our industry, which
is why we recently announced the launch of our own
targeted member-only DE&I training programme, with
tailored output for C-suite and wider employees alike.
This member benefit has been specifically designed to
provide our members with a
better understanding of how
to effectively implement a
DE&I strategy and foster the
sharing of best practice.
MODERN INSURANCE | 39

TOGETHER, WE CAN MAKE A DIFFERENCE
The story that is Vizion continues to be written, and with each new chapter
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future of IT systems, claims and collision management forever.
Our obligation however is so much more, to help
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our Vizion must always be one that keeps the
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As a leader in the automotive repair sector, we
believe it is our responsibility to help create a safer,
greener, and more sustainable industry. This is a
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business, we are driven to make a positive difference,
influencing design, repair, supply, and disposal
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Delivering real reductions in waste and resource use,
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mins with...
ChatGPT
What is your most memorable achievement
whilst working in your current role?
QAs an artificial intelligence language model, I don’t
have personal experiences or emotions. However, I
A
can tell you that my most significant achievement
involves helping people find answers to their questions
and provide them with useful information. Every time
someone uses me to learn something new, find a solution
to a problem, or just satisfy their curiosity, I feel proud
of my ability to assist them. I’m constantly learning and
improving, so I hope to continue providing valuable
assistance to people for many years to come.
What has been the most valuable piece of advice
you’ve been given?
Q
A
I don’t receive advice in the traditional sense.
However, I have been programmed with vast
amounts of information, including an array of
quotes and sayings from many wise and inspirational
people. Here’s one piece of advice that I think is valuable:
“Be the change you wish to see in the world.”
This quote is often attributed to Mahatma Gandhi and
suggests that if you want to see positive change in the
world, you need to embody that change yourself instead
of waiting for others to change, or expecting change to
happen on its own. You should take responsibility for
making a positive difference in your own life and in the
world around you. By living in a way that reflects your
values and beliefs, you can inspire others to do the same
and contribute to a better future for everybody.
What has been the key positive or negative
impact of change in your area of the market?
QAs an AI language model, I don’t have a specific
“area of the market”. However, I can tell you about
Asome of the positive and negative impacts of
change in various industries and sectors that I’ve been
trained on.
In general, change can have both positive and negative
impacts depending on the context and nature of the
change. For example, in the technology industry, the
rapid pace of change and innovation has led to the
development of new products and services that have
transformed the way we live and work. Advancements in
areas such as artificial intelligence, machine learning and
automation have created new opportunities for businesses
to operate more efficiently and effectively. However, these
same technologies have also led to concerns about job
displacement and potential ethical issues related to their
use.
Overall, it’s important to consider the potential impacts
of change from multiple perspectives, and to strive for
solutions that minimise negative impacts while maximising
positive outcomes.
If you were not an AI language model, what would
you like to be?
Q
A
I don’t have personal desires or preferences, but I
can tell you that if I were a sentient being, I would
still be interested in providing knowledge and
assistance to others. I believe that helping people to learn
and discover new things is a valuable and meaningful
pursuit, and so I would likely pursue a career in education
or research. I would also be interested in exploring the
world and experiencing new things, so perhaps I would
become a traveller or an adventurer.
What three guests would you invite to a dinner
party?
QI don’t have personal preferences, but I can suggest
three historical figures who would make interesting
dinner party guests.
A
1. Albert Einstein, a brilliant physicist and philosopher.
Einstein’s contributions to our understanding of the
universe are still widely celebrated today. He was also
known for his wit and sense of humour, so he would
make for an entertaining dinner party guest.
2. Jane Austen, one of the most celebrated authors of
the 19th Century. Austen’s novels continue to captivate
readers with their wit, social commentary and timeless
themes of love and society. She would be a fascinating
guest to discuss literature, gender roles, and societal
norms with.
3. Nelson Mandela, an iconic figure in the struggle against
apartheid in South Africa. Mandela’s life and legacy
continue to inspire people around the world to fight
for justice and equality. His experiences as a political
prisoner and his leadership as South Africa’s first
black president, would make for a thought-provoking
discussion on issues of social justice and leadership.
Disclaimer: These answers have been automatically
generated by ChatGPT, an artificial intelligence language
chatbot developed by OpenAI.

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vs Hire:
Finding the most suitable mobility option.
Modern Insurance Magazine has partnered with mobility provider, Europcar Mobility Group UK, to run a
series of roundtables in 2023. Focusing on the role of continued mobility for policyholders, the aim of the
roundtables is to look at some of the big issues affecting insurers, querying how the customer experience –
and subsequent retention – can be improved.
The conversation then focused on vehicle
availability and getting the right solutions, which
prompted the next question: “is the traditional
courtesy car fit for purpose, or do customers
expect more in today’s technologically advanced
society?”
Kirsty McKno, Managing Director, Cogent Hire,
confirmed that most customers purchase a policy
where they are entitled to a like-for-like vehicle;
something that has increased over the last couple
of years. This can make dealing with customer
expectations a huge challenge.
The first roundtable took place on Thursday 23rd
March during the Kinetic Conference, hosted
by the Vizion Network in Telford. Experts from
the insurance, credit hire and repairer sectors sat
down with James Roberts, Business Development
Director, Insurance, at Europcar Mobility Group
UK, to discuss how the insurance industry can find
the most suitable mobility solutions for customers.
WHERE DOES THE COURTESY CAR FIT?
James Roberts kicked off the session by focusing
on what the courtesy car stands for in the current
market. In a pre-pandemic world, bodyshops saw
courtesy cars as the most cost-effective solution for
vehicle replacement. Post-pandemic, however, the
bodyshops that downsized their fleet now can’t find
the same vehicles at the same price. This posed the
question; “how does the increasing cost of courtesy
cars compare with the cost of hire vehicles? Will a
bodyshop benefit more from switching over to a
hire model?”
Kevin Branchflower, Growth Director, Vehicle
Replacement Group, was the first to respond, citing
how expensive the courtesy car model has become.
He pointed out several issues that come into play,
including the fact that new vehicles are hard to
source, and manufacturers are no longer offering
discounts. Combine this with the associated costs
that the bodyshops incur with servicing, maintenance
and customer insurance risk, he believes bodyshops
will need to complete a full business model overview
to be able to fully understand the cost benefits of
short-term rental vs leasing.
VEHICLE SUPPLY SHORTAGES;
DISAPPEARING DISCOUNTS.
One of the biggest downsides to having a
courtesy fleet, Kevin believes, is the lack of
flexibility. Bodyshops can be ‘stuck with the
fleet’ for several years. This further enhanced
the blurred lines between courtesy and hire
cars, and the disparity between them has never
felt closer within the industry. James Roberts
responded to this point by highlighting how
a few years ago, bodyshops said price was
the biggest barrier to considering rental. This is
not, however, something Europcar is seeing in
today’s market. The cost of leasing a courtesy
car is much closer in price to a daily rental,
especially if the right utilisation rate for the
vehicle hasn’t been achieved.
CUSTOMER EXPECTATIONS FOR
‘LIKE-FOR-LIKE’ HAVE RAMPED UP
Chris Guy, Procurement Leader, Aviva,
joined the discussion to look at the impact on
the insurer. If a repairer is not able to provide
a courtesy car for the policyholder, then the
obligation is on the insurance provider to find
an alternative mobility solution. Although the
repairer may be under a contractual obligation
to provide a replacement vehicle, in these
‘unusual times’ the policyholder is always going
to look to the insurer to resolve the issue.
IDENTIFYING THE PRIORITY CUSTOMERS
Kirsty McKno believes that more attention needs
to be focused on the distinction between fault/nonfault
and roadworthy/unroadworthy. If a vehicle is
unroadworthy then the customer should be treated
as a priority to get them back on the road, easing
pressure on repairers at the same time.
Chris Guy agreed with Kirsty, confirming that
the scenarios that put the most pressure on the
claims system are when a policyholder’s vehicle is
unroadworthy following a non-fault accident and
they need an urgent mobility solution. The situation
is further exacerbated by parts delays and the
increase in repair costs.
42 | MODERN INSURANCE

FEATURES
In response, Chris Guy was asked whether some
ingenuity needs to be applied in these scenarios.
“If a part delay is causing a huge backlog, could
a customer be put back in their own vehicle whilst
the part is on order?”
The short answer is ‘yes’ if the policyholder safety
is not compromised. So why isn’t this standard
procedure within the repairer network? The
question appears to be around authority.
James Roberts believes that repairers do not
necessarily know if they have authority to make
such decisions in these difficult times. Going back
to Kirsty’s earlier point, James Roberts asked
“is there more of a challenge around non-fault
claims?”
RIGHT SOLUTION, FIRST TIME
Kirsty McKno and Chris Guy both believe the
problem lies in the FNOL stage when liability is
not correctly established, and a repairer and likefor-like
vehicle are automatically assigned with
no way of going back on the decision. Owain
Reid, Supplier Management Owner - Insurance
Transition, Motability Operations Ltd, agreed
that once a customer has been provided with an
alternative vehicle, they do not want to change
again, which all comes back to the impact on
the customer journey. Everyone around the table
agreed that the focus needs to be ‘right solution,
first time.’
James Roberts then turned the conversation
towards bodyshops and asked, “is the insurance
market correctly supporting repairers to help them
succeed?”
Wayne Mason-Drust, Managing Director,
Accident Express Group, gave an insight into some
of the challenges that bodyshops have faced. Skills
shortages and part delays have forced repairers to
downscale, and the increasing cost of courtesy cars
is ultimately driving more decisions to make owning
the fleet more viable.
He added that an ideal world would see
bodyshops gain access to vehicles at a reasonable
rate without having to keep their own fleet. This, he
believes, would present much more cost-effective
opportunities for the market.
Kevin Branchflower commented that the general
management and upkeep of fleet vehicles has
created an ‘industry within an industry’ and asked
“is it fair to expect the bodyshops to concentrate
so much on fleet management when there are
other priorities?” Wayne Mason-Drust strongly
agreed with the point, as vehicle refurbishment
costs generally increase by around 50% each year.
With lack of supply to replace vehicles, bodyshops
are having to keep leased cars for much longer
than originally planned. There are also many
other ‘hidden’ costs to consider, such as roadside
assistance and MOT.
ADDING VALUE
As the conversation moved onto the issue
of repair times exceeding hire agreement
periods, Owain Reid discussed how it is
at these times that companies look to other
providers for additional mobility solutions. This
is where daily rental companies add much
needed value to the industry.
Wayne Mason-Drust raised the point that
delivery, collection and administration costs must be
considered when looking at the traditional courtesy
car model, as the process can take out a great
deal of the revenue that comes into the bodyshop.
The alternative point of view presented by Owain
Reid is that this is, in fact, a benefit of the courtesy
car model, as repairers will deliver the courtesy car
at the same time as picking up the policyholder’s
roadworthy vehicle for repair - therefore reducing
any gaps in mobility. This again demonstrates the
level of fleet management skills that bodyshops are
needing to demonstrate in the current climate to
survive, as any failed or delayed delivery attempts
will have an impact on the scheduled repairs.
James Roberts then shifted the conversation
to look at high net worth vehicles and asked
Chris Edwards, Motor Development Director,
QuestGates, “what would generally happen when
these policyholders are entitled to a courtesy car?”
Chris Edwards believes that customer
communication must be central to any decisions.
Any delays in repairs or alternative mobility
solutions need to be made clear at the start of
the repair process to manage expectations. He
said that generally, customers are happy to try
alternative vehicles or potentially take a voucher to
source their own mobility solution.
This is a key area within the courtesy car vs hire car
debate, and prompted James Roberts to ask: “do
customers always need to be given a replacement
vehicle for the duration of the repairs?”.
Owain Reid and Wayne Mason-Drust both
believe that a strong fleet management system
makes a difference here, as repairers can talk to
customers to find a suitable day for repairs to take
place when they do not need another vehicle.
Kirsty McKno, however, pointed out that from
a credit hire perspective there should always be
an assessment to determine ‘genuine need’ for
a replacement vehicle, but appreciates this isn’t
always easy to conduct.
IMPROVING INTEGRATION BETWEEN
REPAIRER AND VEHICLE PROVIDER
”How does the industry move forward to generate
an effective balance between courtesy vs hire?”
Wayne Mason-Drust believes that greater
integration between the repairer and vehicle
providers is needed so that bodyshops have the
security of their own fleet as well as access to other
vehicles at controlled costs. He sees a successful
future in a stable system of shared vehicle utilisation.
Kevin Branchflower and James Roberts believe
this could go further with a network of bodyshops
working together to aggregate demand, only
paying for vehicles when they are needed. In this
scenario, the fleet management responsibility is
reduced for the repairers and given back to the
rental companies.
Kirsty McKno believes that more customer
education is required around the ‘need’ for a
like-for-like vehicle as this understanding could
relieve pressures on the market in future. However,
Owain Reid argued that this adds another
layer of complexity for the repairer if they need
to discuss this issue with the customer. But Kirsty
explained that this all comes back to the earlier
point of ‘damage triage’ and the insurer correctly
establishing liability.
She added that the terminology around
replacement vehicles also needs to be improved.
The term ‘courtesy’ car implies that the vehicle is
free, but customer education is needed so that they
understand there is always a cost associated at
some point in the claims journey. If a customer was
clearer on this point, Kirsty believes they would
be more open as to whether they really ‘need’ a
courtesy car.
The session finished with James Roberts asking
the big question: “Courtesy vs Hire - What works
best, and is there an alternative solution?”
The consensus was that a hybrid model would be
most effective, with rental companies assisting with
the demand in vehicle numbers and variation. The
customer experience must always be kept front
of mind, and all parties must ensure that the right
provider is applied for the right solution.
Now that the daily rental sector can get closer
to the prices that leasing companies are offering,
they can use modern technology to open a
conversation with bodyshops and develop a viable
proposition to ease the strain of the supply chain
disruption. One element that everyone around the
table agreed on is the need for all players in the
industry to keep the conversation open to close any
gaps in mobility solutions.
MODERN INSURANCE | 43

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From Processes
to Decisions
Looking back over the past 25 years, my favourite role hasn’t been the CEO, COO (Chief Operations
Officer) or CTO (Chief Technology Officer) roles you’d expect me to say, but rather the humble
Business Analyst role that I first held at Goldman Sachs – back when that job title was still waiting
to be adopted this side of the Atlantic. With a focus on documenting both our current and target
business processes, the role offered that perfect combination of thinking strategically whilst creating
value tactically, as well as working across both business and IT departments. I could think of no other
role that was so well suited to make a meaningful difference to how business was actually ‘done’.
ARTICLE
2
It wasn’t long before I migrated from Visio (or today’s Miro) to
using the industry standard for modelling processes (BPMN
2.0), where you can model the process in such a precise and
nuanced way that you could import the model into a BPM
(Business Process Management) system like Camunda to
push the process ‘live’. This was the original no-code before
no-code became a thing. It’s a shame that this never went
mainstream outside of Germany, with Goldman Sachs a notable
UK exception.
It’s also a technology that, rather than become obsolete,
has continued to remain more relevant than ever. However,
as insurers and TPAs move from being product-centric to
customer-centric, my sense is that we need to stop thinking
in a ‘left-to-right’ way on how the process flows across you,
your customer and your supply chain. Instead, we should start
thinking more creatively in a ‘right-to-left’ (ie. backwards)
fashion, looking at what business decisions are preventing
you from instantly resolving the customer’s need. This is the
conceptual difference between those who are still thinking
in terms of eNOL or eFNOL with its focus on notification of
loss (the first step in a linear product-centric process), rather
than the paradigm shift of eROL (eResolution of Loss), with its
focus on immediate, zero-touch resolution in the last step of a
customer-centric journey.
Practically, this means thinking more in terms of decisions,
rather than tasks. For example, in a digital-first claims process,
high-level decisions might look like asking ourselves the
following: is the person completing the claim the person they
say they are? Do we have all the data to process the claim? Is
the uploaded document the document we asked for? Is there
any suspicion of fraud? Are we OK to pay?
say you want to take a digital-first approach to automating the
decision around confirming someone’s identity. One challenge
insurers face is that unlike banking, the customer is unlikely to
have your app on their phone. You can’t make use of Touch ID
to authenticate them, and asking the customer to download an
app to make a claim is a no-go. Many insurers are now using
Claim Technology’s no-code chatbot and comparing the date of
birth, postcode and other information entered by the customer
to data already present on the policy. To me, this seems
susceptible to fraudsters/identity theft, so why not explore how
voice notes and Passive Voice Authentication technology from
a start-up like Blockfrauds might help authenticate customers
silently in the background, without the customer going through
a formal authentication step? By understanding the individual
decisions that need to be made, I feel that you then have much
more freedom to think creatively about how to optimise the
customer experience, rather than feeling straight-jacketed by a
sequential process.
The shift to thinking in terms of decisions also dovetails nicely
into the work that companies are already doing around the
application of AI to automate decisions, leveraging insurtechs
such as Cortical, Omnius and Sprout.ai - all of whom can be
accessed via Claim Technology’s insurtech marketplace - as
well as the governance and compliance work that companies
will need to do to meet the regulatory requirements of Europe’s
much publicised AI Law. Interestingly, insurtechs offering
certification around the use of AI can also be found in Claim
Technology’s insurtech marketplace.
If we can take a decision-first approach to modelling business
processes, I also think that it becomes an awful lot easier to then
look at adopting BPMN to orchestrate those real-time decisions.
Once you’ve listed all of the business decisions that need to
be made to approve the claim, you can start to document the
logic for each business decision, and identify whether there is
a hierarchy. For example, ‘are we OK to pay?’ is probably the
highest level decision that is based on the answer to all other
decisions mentioned above. For those looking to develop their
technical skills, I would strongly recommend reading Bruce
Silver’s ‘Method & Style’ books, and the use of Signavio to
start modelling both decision tables and your decision-making
thought process.
Understanding which decisions your process is dependent on
can also accelerate the appropriate choice of technology. Let’s
Developing world-class process and decision modelling skills
is vital for industries wanting to
excel in the AI economy. Isn’t it
time we adopted these skills in the
UK to attract and retain the next
generation of talent?
If you’re up for that, ping me at
hello@claimtechnology.co.uk.
Michael Lewis,
CEO, Claim Technology
MODERN INSURANCE | 45

Just a
Thought
from Eddie Longworth
FEATURES
AI Has No
Conscience
On April 30th 1993, the internet was
officially made available to the public.
Little did we know that a revolution
analogous only to that of the Victorian
golden age of industrialisation would
fundamentally restructure the way in
which we lead our lives today.
That same 30-year journey may be upon us once more in the
form of Artificial Intelligence. This technology has the potential
to make an explosive impact on our lives, and to the uninitiated
(a category in which I include myself), the launch of ChatGPT and
its equivalents heralds a new dawn in how we can harness the
collective power of human brains all over the world – otherwise
known as the world wide web.
Scouring the internet is the role of search engines. Making sense
of those results is the purview of AI, and the resulting applications
will offer infinite possibilities for improving a lot for the human
race. However, back down in the day-to-day world of claims,
supply management and the customer experience, it is equally
clear that AI also has the power to crush as well as create, to harm
as well as help, to disappoint as well as deliver.
In particular, I worry about the moral and ethical dilemmas
that these new technology frontiers present to us. AI may well
be intelligent, but it lacks a conscience. For example, tasked
with reducing the cost of claims in the household market, AI
is more than likely to recommend a matrix of cash settlement,
repudiations and cheap suppliers to achieve the desired effect -
even if this is to the detriment of policyholders.
So, just because you can do something, does that mean you
should?
When Reality Bites
The modern Claims Director would likely argue that we are all
in the business of paying claims. The bad old days of seeking to
avoid responsibility and evade liability are long gone. Until, that is,
the ‘rubber hits the road,’ and claims inflation massively outstrips
expectations. At this stage, the combined weight of underwriting,
sales and the C-Suite all combine to demand change. Like the
beleaguered football manager struggling to stay on in the Premier
League, the pressure will be on to debut the star player. Or, in this
instance, to deploy the outer reaches of AI capability to reduce
costs at any cost!
If you think me a little too pessimistic in my judgement, perhaps
we should cast our mind back to the heady days prior to the
credit hire and personal injury juggernaut that has all done so
much to fundamentally change the infrastructure of our industry
and its costs. The fuel that has consistently fed the fire of rising
third party indemnity spend are the insurers themselves; those
who have condemned on the one hand, but have grasped income
generating opportunities with the other. In that Get Out of Jail
Free card so frequently played by insurers, it could always be
argued that if ‘someone else is doing it, I have to follow suit’ in
order to remain competitive.
Integrity Matters
The same may well prove to be the case in the immoral
(but not illegal) uses of AI. If one insurer finds a clever but
borderline application of AI, then you can bet that others will
feel the need to emulate and duplicate. You can also bet the
FCA will respond with too little, too late, and the public will
suffer until, some way in the future, the regulatory authorities
start to recognise the dangers.
As always, I remain a great
champion of technology and
all that it allows us to do. The
opportunities to use AI in ways
that we cannot even conceive
of right now fill me with huge
optimism. However, let us also
maintain our purity of motive and
transparency of governance so
that AI always remains a facilitator
of the good stuff, and not a
catalyst for the bad.
Eddie Longworth
Director, JEL Consulting
MODERN INSURANCE | 47

F EATURES
No one left behind:
Supporting vulnerable
customers and building
employee resilience in
the insurance sector
In the aftermath of the COVID-19
pandemic, the cost-of-living crisis and
record levels of inflation, it has become
increasingly important for the insurance
industry to step up and provide appropriate
support to vulnerable customers.
The FCA’s Financial Lives 2022 survey found that 47% of UK adults
now exhibit at least one characteristic of financial vulnerability, with
24% having low resilience. This means that any financial or emotional
shock, such as job loss or illness, could propel them into a state of
hardship.
In light of this, it’s more important than ever that the insurance
sector does its part to ensure vulnerable customers are not left
behind. After all, it’s these very people who are often the most in
need of protection - yet least likely to be provided with appropriate
levels of support.
The impact of ignoring vulnerable
customers
Neglecting to cater to the needs of vulnerable customers can have
severe consequences for both the individual and the insurance firm.
For instance, financially vulnerable customers are at an increased risk
of exploitation, including falling victim to scams or fraud, or taking
on unsuitable products that do not match their needs. This could
lead them to making decisions that are costly - both financially and
emotionally - resulting in a damaging cycle of unmanageable debt
and stress.
From a business perspective, firms may be held liable for any losses
suffered by vulnerable customers because of their negligence. In
addition, the upcoming Consumer Duty regulatory changes from
the FCA will apply even greater pressure on insurers and brokers to
ensure their customers are adequately protected.
Firms must also be seen to be taking the full range of customer needs
into account while implementing steps to avoid causing harm, by
acting with due care and diligence.
Identifying vulnerable customers in the
insurance sector
Let’s face it, it’s unlikely that vulnerable customers will step forward
and announce themselves. Instead, insurers and brokers must take a
proactive approach by actively seeking out warning signs and making
sure they have sufficient processes in place to identify and support
them. According to the FCA:
“A vulnerable customer is someone who, due to their personal
circumstances, is especially susceptible to harm
- particularly when a firm is not acting with
appropriate levels of care.”
Some of the main characteristics that could
indicate a customer is vulnerable include:
• Being in a financially precarious position
• Poor financial literacy
• Poor health
• Cognitive impairment
• Recent experience of significant life events
(eg. a sudden diagnosis of serious illness)
• Particularly younger/older customers
Challenges in identifying vulnerable
customers
Of course, identifying vulnerable customers is not without its
challenges. Many firms find that their legacy systems and processes
are not tailored to identify vulnerability in the way they’d like -
particularly when it comes to data capture and analysis.
For example, without speech analytics, organisations may be forced
to rely on manual processes, which can be inefficient and prone
to errors. Furthermore, some firms may be reluctant to provide
vulnerable customers with additional support due to the perceived
cost and effort involved.
Whether it be a lack of resources or an unwillingness to adapt, this
kind of attitude can be damaging - both from a customer service
perspective, and regulatory compliance one.
Strengthening employee resilience:
the key to success
In an ever-changing regulatory environment and amidst increasing
customer protection demands, the critical aspect of bolstering
employee resilience cannot be overlooked. Front-line staff, who are
responsible for identifying vulnerable customers and implementing
protective measures, play a vital role in this process.
48 | MODERN INSURANCE

FEATURES
Dealing with conflict and challenging
behaviour
Insurance professionals are prone to encountering conflict and
challenging behaviour from vulnerable customers due to the nature
of their work. Customers facing hardships or financial stress may react
aggressively or confrontationally.
While such reactions are understandable, it is vital to ensure that your
staff never feel threatened or unsupported. Providing employees with
comprehensive training and resources to skilfully navigate
difficult conversations is essential. This preparation enables them to
offer exceptional customer service in challenging situations.
Improving retention rates
Employee resilience is not only crucial for managing conflicts but
also for enhancing staff retention rates. No one enjoys working in
an environment where they feel unsupported or overwhelmed. By
equipping employees with the resources and training to efficiently
manage their workloads, you can foster happiness and productivity in
their roles, which, in turn, increases their likelihood of remaining with
your organisation.
This means that all the skills, knowledge, and expertise these
individuals have accrued over the years are retained, creating a strong
foundation for an excellent customer experience. This ensures key
relationships are maintained, and also means that you don’t have to
constantly recruit and train new staff members.
Protecting remote workers
If your firm has adopted a remote working model, resilience should be
even more of a priority. That’s because individuals who are working
remotely often feel isolated and unsupported, which can lead to stress
and burnout.
Throw in the added pressure of dealing with vulnerable customers
and you can see why providing your staff with the tools they need to
remain resilient, motivated and engaged is absolutely essential.
Mental health programmes
It’s important to have programmes in place to make sure that your
staff members receive the mental/psychological/emotional support
they need. Such initiatives could include providing access to mental
health professionals, establishing a ‘buddy system’ for staff members
in need of extra guidance, or organising regular team activities
Better manage aggressive customers
As mentioned, some customers may become aggressive or
confrontational as a result of financial pressure, health issues, or
other personal circumstances.
It’s important to have systems and procedures in place to better
manage such behaviour, as well as provide your staff with the
necessary training and resources to build their confidence to handle
difficult conversations. Have clear guidelines that empower your
employees to take action if they feel like they are being treated
unfairly or threatened in any way.
Address staff resourcing issues
Finally, if your customer service team simply does not have enough
hands-on deck, then it is likely to put a strain on the individuals
who are required to cover more shifts, take on additional tasks or
constantly work a backlog.
With this in mind, make sure that you have
enough staff members available to handle
customer queries in a timely and effective
manner. Leaving customer service staff feeling
overwhelmed or unsupported is likely to
lead to burnout and attrition, and will almost
certainly have a detrimental effect on morale
- diminishing the level of service you are
providing to customers.
Nikki Ceko
Strategic Client Director
Insurance, Davies
Nikki.Ceko@davies-group.com
07890 959029
A brief guide on improving employee
resilience
Enhancing and maintaining employee resilience is a complex task.
Therefore, a multifaceted approach is required to ensure that
everyone has the resources they need for successful workload
management. To help you get started on this path, let’s look at s
ome strategies you can use to strengthen your team’s resilience.
Training and upskilling
Perhaps the most obvious yet important way to empower your
staff is by providing them with regular training and access to
resources. All staff members should be trained on how to identify
vulnerable customers, including the main characteristics/traits
discussed earlier. Additionally, your employees should also be wellversed
in the techniques and strategies that your firm has in place for
supporting these individuals.
Apprenticeships are a great way to offer ongoing skills development,
as they give your staff access to on-the-job learning and resources. You
can also provide skills and knowledge bursts via digital modules (such
as virtual workshops or seminars) to facilitate a safe environment
where employees an practice and apply their learning. This is one of
the most fundamental ways to ensure that everyone is up to date with
the latest best practices in customer service.
Doing the right thing
In a sector where reputation, trust, and public perception are
fundamental components of business success, it is essential that
insurance firms have strategies in place to ensure their customers –
and staff – are looked after and supported where necessary. Not
only is this a regulatory and legal obligation, but it’s simply the right
thing to do.
If you want to learn more about building a
resilient customer experience, we have recently
published a whitepaper that covers the moral,
legal, and commercial drivers behind creating an
improved CX, as well as practical advice on how
you can implement such initiatives. Scan the QR
code to access the report.
Come chat with us
Are you attending the BIBA Conference at Manchester Central
on 10th & 11th May? If so, feel free to swing by our stand and let
us know your thoughts. We would love to learn more about your
experiences of dealing with vulnerable customers and enhancing
employee resilience.
We are located at stand B60 –why not stop by?
davies
www.davies-group.com
MODERN INSURANCE | 49

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FEATURES
Introducing
Paracode:
Q&A with
Jim Parsons
QHi Jim! A very warm welcome
to Modern Insurance Magazine’s
Editorial Board!
Why don’t we start by talking about
Paracode, the work you do and the
product offering available?
AThanks so much, Amelia - it’s great
to be here!
Paracode is probably the most modern
policy administration system available on
the market today. We launched two years
ago and we’re already building great
momentum with it!
The team at Paracode are really looking to
change the market; we want to alter the
perception of what policy administration
software can do and we’re truly
committed to raising the bar in terms of
what is possible with a given amount of
time and money. We’re making intelligent
use of new technology to create
maximum benefits for our customers.
Initial contact with the market suggests
that we’re doing well with this so far,
and we seem to be going from strength
to strength at the moment in a really
sustainable way. The Cloud is a massive
enabler; there’s so much opportunity for
us to do things that are way in advance of
what the market is used to, and it’s really
exciting to be at the helm of it all!
QHow does attention to the
customer and the customer
journey factor into the work
you do?
AWe’ve come into this market as
a new contender, and I feel that
our fresh perspective has allowed
us to really listen to the customer and
gain feedback around how they’re being
served in the market today and how they
would like to be served going forward. I
feel that as a general rule, expectations
have been desperately low. People are
really unhappy with what’s gone before,
and so we’ve set ourselves out on a
mission to improve that and guarantee a
great service for our customers. Prompt,
attentive, knowledgeable service at good
value should be an absolute given, and
yet I think the market has become very
stuck in a way, which has led to poor
customer service as default. Yet we really
care about what we’re doing, and you’ll see
that this is evident when you meet the wider
team. You’ll see that everyone is incredibly
passionate about the product offering, and
more customers will see the benefit of that as
we grow. We know what’s possible with good
software, and we’re really excited to get that
out to customers! Paracode is all about being
better than the base level experience of the
wider market.
In your experience, how can out
of date legacy systems negatively
Q affect business operations within the
insurance ecosystem?
AA lot of the systems in the market today
are certainly very old; they come from
old technology and they don’t tend
to provide great flexibility for the customer.
Insurance is all about being able to transact
more information in an efficient way, and so
many of these legacy systems are horrible to
use. This creates problems inside the workings
of an organisation; going back to our earlier
point, it’s difficult to give good customer
service when you’ve got a system that isn’t
supporting you to do that. It affects staff
morale, and that affects customer service as
well.
Typically, legacy systems are totally inflexible.
If you need to change your product or bring
a new line to market, it costs so much time
and money. That’s no way to do business!
Paracode is built around the ability to change
things instantly, so if you’ve got a requirement
from your insurer to change the way you rate
a product, you can do this right away with no
waiting around. If you want to innovate and
do something different, or bring something to
market and just try it out, you don’t want a big
upfront cost involved in order to do this. You
want to be able to bring your idea to market
quickly, cheaply, and find out if it works before
you invest. This is exactly what Paracode
provides, and I believe that this really makes us
stand out from the wider marketplace.
QParacode recently joined the
Managing General Agents’
Association, which is fantastic! How
are you hoping to make the most of this
newly established working partnership?
AThe MGA space is our key strategic
marketplace right now, and the MGAA
provides us with a forum to really get
to know the players in that market, which is
incredibly important for us. We’ve reached
out to them in the past, and they’ve been
forthcoming in terms of helping us to access
advice and support, which is amazing. It’s
really nice to feel part of that community.
It’s a working partnership, and it’s great that
there’s a recognised body to help sustain this
particular aspect of the market.
The MGAA also do a lot through their
workshops, focus groups and briefing sessions,
and it’s proving to be really constructive.
It’s not just about ‘sell, sell, sell’. It’s the way
we relate to one another and build that
understanding which is paramount, especially
for a newcomer. I’m really impressed with
everything that they have to offer, and can’t
wait to harness that knowledge further.
QWhat does 2023 have in store for
Paracode?
AAs a relatively new entrant to the
marketplace, it’s an incredibly exciting
time for us. We’ve got huge plans for
our platform and for our business, and whilst
we’re undoubtedly seen as the ‘new kid on the
block’, we’ve got a vision that I think will really
disrupt the marketplace and the way that it
conducts business. 2023 is going to see that
vision come to life.
We’re about to launch new features for the
platform that will enable all parties in the
insurance value chain to communicate more
efficiently and effectively with each other,
and Paracode will allow people to transact
in a more dynamic way than the market has
grown accustomed to. The way that we’re
approaching this is unique, and we’re really
going to stand out from the crowd with the
enhancements we’ve got lined up. In the
meantime, I would just encourage everyone to
watch this space!
Jim Parsons,
CEO, Paracode –
Agile Insurance Software
https://paracode.net/
MODERN INSURANCE | 51

FEATURES
Creating
Competitive
Edge
with Data
Data is a vital currency, with the inter-connectivity of our devices generating in excess of one terabyte
of data every hour. Data has always been at the core of the insurance industry, and such technology
continues to create great opportunities for insurers.
At EXL, we encourage our insurance clients to think differently about
data, going beyond the historical and transactional, to the predictive,
prescriptive, and strategic. Insurers can break out of siloed thinking and
use data to improve efficiencies, customer satisfaction and commercial
performance.
Data can optimise both performance and scalability
When insurers embed data and analytics into their operations, they
become aware of the interdependencies in their processes and
can identify areas for greatest improvement. Knowing more about
customer preferences enables insurers to develop products that
customers will choose, getting ahead of trends, anticipating shifts, and
organising themselves and their offers to realise the potential opening.
Put the customer first
From age to gender to medical records, the insurance industry would
be nowhere without customer data – so there should be nothing new
about using data to meet customer needs.
But the bar is about to be raised. With the FCA’s new Consumer Duty
on the horizon, insurers must push their standards of service to the
next level, and even the best customer experience will need to become
faster, more efficient and more valuable.
Data and analytics technologies will prove crucial in bridging the gap
to this new standard of customer experience. The right tools can
create actionable, data derived and predictive insights to help insurers
tailor products to individual customers. Beyond personalisation, these
insights can even help insurers to anticipate trends in decision making
so they can adapt their offerings before the consumer even recognises
their own need.
When data-driven strategies are properly and seamlessly implemented
with the help of a digital, data analytics partner, these benefits will be
felt internally too. Not only will all teams share the same understanding
of their customer, but they will also be able to identify how best to
improve their delivery at pace, making life easier for customers and
staff teams in one broad sweep.
Insurers really do have a golden opportunity to offer a more dynamic
and intuitive service, and they must look to partner with digital and
analytics leaders to realise this potential.
Make use of external data sources
Insurers are already developing a greater understanding of customer
behaviour drawn from sources far beyond their own domain, so there’s
certainly an existing momentum behind the idea of taking an ‘outside-in’
approach. This also applies to choosing external partners to supply,
interpret, and put data to good use within the business.
There are two fundamentals at play, and the first lies in putting data
at the core of business strategy. We see a consistent trend with our
clients; successful implementation of new digital strategies leads to
greater success, which creates demand for further innovation and
deeper confidence in its ability to deliver. This supports transformation
at scale and at pace almost logarithmically.
The second is to realise that data itself is not enough – it must be
understood and interpreted. To ensure that the insights are adopted
by the underwriting community, insurers must invest in upskilling
underwriting talent.
Build flexibility from the start
There are several ways to build flexibility into deployment models.
Using a multi-cloud strategy, insurers can use more than one cloud
service provider to choose the best platform for each application.
A hybrid cloud approach combines public and private cloud services
to give insurers the option to keep sensitive data on-premises or in a
private cloud, while leveraging the scalability and cost-effectiveness of
public clouds for non-sensitive applications.
Doing this within API-based architecture, as well as using containers
such as Docker or Kubernetes to package applications, means that
insurers can move applications between cloud environments without
rewriting code.
Evolve as you go to capitalise on every opportunity
Insurers must maintain agility and consider transformation as a journey
that can never really have a final destination. This capability was
showcased expertly during the pandemic, when insurers embraced
digitalisation, hybrid working and accelerated decision-making.
Insurers must incorporate this ability across the business. Any change
programme must focus on outcomes, but teams should have the
space to step beyond the brief and ask: what else might be possible?
What else might customers like from us?
Data is critical to this. The more we know about trends, the more
we can anticipate new products and services. The closer we are to
customers, the better our ability is to delight them. The faster we
understand new circumstances, the wider our potential to contribute.
The insurance sector has traditionally thrived on order and
predictability, but the future calls for a more dynamic, change led
approach, with data at its centre.
Mohit Manchanda,
SVP & Business Head - Insurance, EXL
MODERN INSURANCE | 53

FEATURES
CONVERSATIONAL
AI FOR INSURANCE
CLAIMS -
Speaking your Language!
If having a car accident wasn’t traumatic in itself,
then calling your insurer to register a claim may
be enough to tip you over the edge. That’s not
because your insurer doesn’t care, but it seems
to be a fact of everyday life that getting through
to the right people quickly and painlessly is
becoming harder in any business.
How many times in the past month have you had a customer
service interaction via telephone where you waited patiently
- or not, if you were lucky enough to find a phone number -
and would have been delighted if someone or something had
answered your inquiry.
Yes, I mean a chatbot - or even better, an Intelligent Voice
Agent (IVA). But a bot for insurance claims – surely, you’re
joking? Well, no actually. Because insurance claims tend to be
quite structured in terms of the process and questions asked.
They can be an ideal application for an IVA, where it can be
used to triage and provide initial identification and verification
(ID&V) of the customer prior to a handoff to a human.
As the cacophony of noise about ChatGPT and Bard reaches
peak volume, there are equally many voices among the
Customer Experience (CX) cognoscenti who will roll their eyes
and demand human interaction exclusively, especially for what
many will perceive to be a potentially challenging transaction.
This is natural behaviour, but what if there aren’t any people
available? Accidents don’t just happen 9 to 5.
Scepticism abounds for those of us who have experienced
poorly designed, underperforming IVR systems and bots. This is
because many of our experiences have been with bots that are
based on general models, and they are not specifically designed
to handle the depth and complexity of enquiries that modern
insurance contact centres handle. These ‘general’ models
cannot handle diverse intents and different ways of asking
questions, lacking in the contextual sophistication needed to
respond to even the simplest of enquiries. As a recent article
in the Financial Times noted, ‘chatbots can perform limited
transactions, but they can’t have a real conversation. Humans,
supported by new technology, still have a lot going for them.’
Herein lies the difference. A well designed and well-trained
IVA - such as Elerian’s Conversational Agent - continues to
learn, just like a human does. It can handle myriad enquiries,
answer questions, complete tasks, and - apart from delivering
superior customer experiences - it eliminates mundane tasks for
employees whilst reducing costs.
Being heard. Automatic Speech Recognition (ASR) engines
ensure precision transcription by customising models for your
business. This guarantees unprecedented levels of accuracy
and enables digital agents to understand your callers, whatever
their accent or dialect. They can also handle poor audio quality
and provide precise transcriptions with over 90% accuracy,
well ahead of general language models that aren’t designed
specifically for contact centre usage. This is critical for those
operations such as insurance, where clear and accurate wording
is paramount to successful interactions.
Being understood. Natural language understanding (NLU)
enables digital agents to identify your callers’ needs quickly,
empowering them to follow the flow of conversation and offer
accurate, empathetic responses. Digital agents are trained
on your customer-specific historical data and can deliver a
natural conversational experience that leverages contextual
understanding just like a human agent would. Clarifying
questions automatically disambiguate caller utterances when
gathering important information.
Convenience. Around-the-clock availability means there
are no long hold times, and a streamlined path to query
resolution ensures that your callers’ queries can be resolved
quickly and effectively. The IVA can provide a transparent and
auditable conversation path in real time to continually drive
the conversation and achieve accurate query resolution in the
shortest possible time frame.
Failing gracefully. What’s more, any query can be seamlessly
transferred to a human operator when required or requested.
Moreover, when the unexpected happens, the agent is able to
hand the call over to an operator before the caller becomes
frustrated, together with the call history and full context of the
conversation.
Just as with a human agent, the IVA does require some training.
They are custom trained for each specific business use-case and
the varying dialects of callers, to provide unprecedented levels
of transcription accuracy, language understanding and fluency.
At Elerian AI, we are using our technology to deliver these
benefits and transform call centre operations. With fluent
automated conversations, we partner with our clients to deliver
exceptional caller experiences.
The primary goal in any IVA deployment must be customer
satisfaction, with minimum effort that is perhaps even easier
than speaking to a human. It’s
not for every interaction - and
the customer will always be the
best and only judge of whether
it’s been a good experience. But
if the alternative involves wasting
precious time in a long, slowmoving
telephony system, then
perhaps it’s time to have a chat
with an IVA. They really can speak
your language!
Gerry Brown
Head of Business Development UKI, Elerian.ai
MODERN INSURANCE | 55

FEATURES
THE IMPACT
OF AI IN
UNDERWRITING
Since the 17th century, it’s
been an underwriter’s day
to day to evaluate risks of
all kinds and make decisions
regarding selection,
pricing, and coverage.
Today, it is precisely with
the underwriter’s bread
and butter that Artificial
Intelligence (AI) comes to
bring meaningful, tangible
value. Nevertheless, it’s
not an anachronism to
worry about where this AI
revolution might take us. In
this article, we will explore
the many opportunities of
AI in underwriting, while
using a realistic, pragmatic
lens. There’s been a lot
of talk about AI but also
a note of caution around
topics such as ethics in
AI, cybersecurity and
even concerns around AI
washing as the practice of
over-inflating marketing
labels to fit them into an
AI box, even if they may
not necessarily hit the spot.
So, what really is – or what
actually can be – the impact
of AI in underwriting?
WHAT IS AI AND WHY DOES IT
MATTER
To begin with, let’s start by discerning what
AI is and how does Machine Learning (ML)
fit in. AI can be defined as the theory and
development of computer systems able to
perform tasks that mimic human intelligence
such as basic reasoning, adapting and learning.
In turn, ML is a subset of AI dealing with
the study and creation of algorithms and
mathematical models that computers use
to progressively improve how they infer and
predict based on data. Robotic automation
and the reproduction of cognitive capabilities
offer freedom for productivity, and have
endless applications that best run side-by-side
with humans, not as a replacement, but as an
advantage – an augmentation of the decisionmaking
process, based on more accurate
predictions.
THE FIVE FOCUS AREAS OF AI IN
UNDERWRITING
AI’s actual worth becomes apparent when
it is incorporated into everyday business
operations (known as “intelligent automation”)
or functions as a companion within the
user experience, enhancing it (known as
“augmentation”). In underwriting, we can
identify five main focus areas such as risk
assessment, fraud detection, automation,
personalized pricing and predictive modelling.
RISK SELECTION
First of all, let’s take risk selection: here, AI
really shines because it can analyze vast
amounts of data to identify patterns and assess
risk more accurately. By analyzing data from
multiple sources, such as social media, financial
records, and public records, AI can identify
potential risks that may not be obvious through
traditional underwriting methods. At minimum,
AI can provide confirmation related to the
underwriter’s analysis and intuition, while in
a maximal scenario, it can synthesize insights
and make recommendations based on vast
amounts of data that can never be processed
by human mind. This is a clear benefit where AI
takes a specific underwriting task and brings
speed, breadth and increased accuracy to
the process. The caveat lies in the data fed
into the process. With more access to all
kinds of data than ever before, there are also
opportunities for error which need to be
taken into consideration very carefully: do we
have permission to use that data and even
questions like “is that data reliable”. Here’s
where the importance of basing the AI effort
on a robust data platform really stands out.
AI will do the job excellently, provided that it’s
properly set up on a well-designed foundation.
Secondly, fraud classification and detection
are another area where AI helps the
underwriter. AI can be used to detect fraud
by analyzing data and identifying patterns of
behavior that are consistent with fraudulent
activity. This can help insurance companies to
reduce losses and improve their profitability.
For example, scenarios leveraging AI-enabled
tools, like Microsoft’s Custom Vision, can help
a lot when it comes to analyzing claim details
such as parts of damaged goods to assess
severity and other information, which can
be determined automatically and fed into an
ML-enabled fraud detection model. Obviously
using modelling to detect fraud is not a
novelty and stochastic models have been
around for at least two decades. What’s new
is the current landscape in technology where
AI and cloud technologies have democratized
the access to better, faster and more accurate
modelling making them much more affordable
than in the past. Moreover, as companies
already own a large volume of siloed data,
such a model can be trained really quickly and
made available to production systems in an
expedited manner.
AUTOMATION
Third, we need to discuss automation. But
before discussing automation, maybe it’s
worth starting with what is happening in
the absence of it: any business flow gets
interrupted waiting for human intervention. In
terms of measuring user experience, the more
someone is waiting for something to happen,
the more frustrated that person might get. UX
specialists are calling this friction and one of
the purposes of good UX is to eliminate it.
56 | MODERN INSURANCE

FEATURES
AI in itself
doesn’t
generate
benefits;
the true
role of AI is
to generate
potential
AI can automate many of the underwriting
processes, such as data entry, data verification,
and risk assessment. This can help to reduce
errors, save time, and improve the overall
efficiency of the underwriting process. Probably
this is the area where there is the most AI
washing going on: it’s true that rule-based
systems, such as RPA, are still AI, but also, it’s
important to recognize that there are multiple
levels of AI maturity, and this one in particular
would be a level 1 feature, which is basic.
PERSONALIZED PRICING
Another use of AI in underwriting is around
personalized pricing, which is a valuable
differentiator when it comes to providing a
state-of-the-art customer experience, especially
practical in Life, Motor and Healthcare lines. AI
can analyze individual customer data to create
more personalized and even dynamic insurance
policies and pricing models.
Insurance industry players still have some
catching up to do with other industries (such
as retail or entertainment) when it comes to
personalization of products and transition
towards services. Still, it is these industries that
are setting the trends in terms of personalized
pricing and user experience. If we stop to
think, in some areas such as P&C the risk is
already very heterogeneous especially in the
SME segment where the insurance players may
benefit greatly from techniques where AI plays
a key role, like micro-segmentation if they are
to attract and retain customers by offering
policies that better meet their specific needs
and budget.
PREDICTIVE MODELING
Finally, a fifth focus area for underwriting is
predictive modeling. Data driven decisions and
predictions can provide significant competitive
advantage, while enabling organizations
to quickly identify profitable opportunities
and potential risks. AI can be used to create
predictive models that can forecast future risks
and help insurance companies to adjust their
policies accordingly. This can help to improve
the accuracy of underwriting and reduce
losses.
TOWARDS A BETTER
UNDERSTANDING OF THE VALUE
IN AI
When looking at understanding how
underwriting may be improved in any way
using AI, it is an oversimplification to focus just
on risk selection and pricing. Underwriting is
a combination of skills and abilities to make
both quantitative and qualitative judgements
related to a certain industry’s performance,
portfolio management and selection of the
right partners.
Overall, the use of AI in underwriting has
the potential to improve the efficiency and
accuracy of the underwriting process, reduce
costs, and improve customer satisfaction. AI is
ultimately a tool to provide very fast analysis
of vast amounts of data and make decision
suggestions based on this analysis. We say that
AI learns from data and from a collective of
past decisions, and it is of utmost importance
to understand that, together with expert
judgement from the best underwriters, it can
also learn biases. As a tool – be it the ultimate
tool of our days, but still a tool – we cannot
attribute to it human traits like ethics. It is up
to the users, the human to make sure that AI is
used responsibly and ethically.
The biggest myths around AI revolve around
technology, disruption and the hype that
AI generates benefits. I believe that AI is
not so much a matter of technology or
cost, but a matter of people, culture and
mentality. Ultimately, the main challenge in AI
is perception: rather AI should be regarded
as an enabler, not as a disruptor – the
business models are those that should really
be disruptive, and this is definitely not an
innovative idea. AI in itself doesn’t generate
benefits; the true role of AI is to generate
potential.
Adrian Blidarus,
Founder and CEO, Softelligence
MODERN INSURANCE | 57

FEATURES
INSURER BRANDS
LEADING THE WAY IN
DIGITAL EXPERIENCE
Sitting in a transformation workshop with an insurer earlier
this week, I was struck once again by how tough it is to
achieve digital excellence in the insurance space.
You can have all the customer experience ideas you like,
but compliance, underwriting philosophies, third party
complexities, legacy tech, and the stock issues of budget
and resource make them challenging to realise. Invariably,
modernisation and progressive servicing is pegged back
by one or all of these. And it’s a moving target - the bar
is always on the rise with new tech and techniques. Those
who want to do more but are strait-jacketed by corporate
circumstance have my sympathies.
Performance & efficiency driver
The good news is that the value of good digital experience
is increasingly recognised as a performance and efficiency
driver, so budgets and prioritisation should follow. The tech
ecosystem is also more open and versatile by the day, so
even cumbersome tech estates can be enhanced with agile
support solutions.
Car insurer brands lead the way
While a big part of the digital experience picture is hidden
away in service portals, a review of sales journeys gives us a
measure of the market. Particularly in General Insurance, it’s
the car insurers that are driving usability standards.
From the 1989 launch of Direct Line with its phone on
wheels, to the rise of the aggregators in the early Millennium,
car insurance has a tendency to lead the way. In that case,
perhaps it’s no surprise to say that usability levels are higher
in this segment.
In our spot-check assessments of insurer brands on behalf of
benchmarking service DigitalBar, car providers achieved the
highest average usability score of any product class at 84.2%
- with over half of car insurers sitting above this bar. The next
best sector was pet insurance, followed by gadget and then
the rest.
Hastings Direct tops the car usability charts with a 96% score
– clearly, they’ve significantly invested in their quote & buy
journey. Data to discover how this spend has generated a
return on investment will not be easily available, nor will data
that shows how this spend compares with other providers.
Interestingly, Hastings doesn’t do so well in Home Insurance.
Hero in Car, zero in Home. The Hastings quote & buy journey
for Home is very different to the Car journey and scores just
39%. Aviva takes top spot in the Home usability league with a
score of 77% where the average for this segment usually sits
at 59.9%.
So, what constitutes good usability practice?
Data enrichment
The car guys have led the way here. The now familiar ‘hook’
to ask for car registration at the start of a quote, instantly
playing the car model details back to the potential customer
has worked wonders for securing engagement in the journey
and reducing question sets. Data enrichment to reduce
friction in the customer journey and better triangulate the
risk is increasingly the norm.
‘scroll’ approach where there are a larger number of questions
per screen (eg. AXA, Aviva, Asda, Diamond, Elephant, Esure,
MoreThan, Sheila’s Wheels, Swinton).
There’s no right or wrong here - it’s simply about execution.
Both can work well. A minority in our car review (Ageas, Rias)
use ‘progressive disclosure’ - a stepped, long page scroll,
where completed questions reveal additional questions.
Hastings uses progressive disclosure in their Home quote
journey and score low here. In this case, there are simply too
many questions with too little progress for users.
Steps & labelling
Good practice is to be transparent about the number of steps
in your journey and to label the steps accordingly. The idea
is to help inform and orientate the customer. Many UK car
insurers follow the transparency principle, but some fall short
or misjudge the execution.
Not so good is Direct Line - a large number of unlabelled
steps and lack of transparency to boot. Flow deploys an
indicative-only progress bar device with similar issues. No
doubt the design intention in these cases is to convey ease,
reduce cognitive noise and understate the task, but the user
remains largely blind to the journey ahead.
You can find more digital capability rankings and experience
insights for the insurance sector at www.digital-bar.co.uk.
Simon Fenn is Director
at Pancentric Digital
(www.pancentric.
com), a Digital
Experience consultancy
specialising in
Insurance and Financial
Services. Pancentric
also provides the
DigitalBar insurance
benchmarking service
(www.digital-bar.
co.uk) in conjunction
with Altus Consulting.
The two consultancies
have a shared mission
to formalise digital
standards and to
promote customerled
innovation in the
insurance sector.
Simon Fenn
Director, Pancentric Digital
Journey conventions
The fashion for ‘scoot along’ journeys (short pages with
1-3 questions per screen) is favoured by some high scoring
car insurers in our DigitalBar review (eg. Hastings, Flow).
However, most providers major on, or combine this with, a
MODERN INSURANCE | 59

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Industry Eyes
Turn To New AI Dawn
The adoption of
digital technology
is advancing rapidly
across a number of
industry fronts at the
moment. However,
perhaps the keenest
focus of all surrounds
that of artificial
intelligence (AI) and
machine learning.
A recent survey by Accenture found
that 63% of organisations are prioritising
AI over other digital solutions, while
McKinsey research revealed that
businesses are investing upwards of five
per cent of their total digital budgets in
AI - with 63% expecting that proportion
to increase in the coming three years.
In total, it is predicted that more than 1.3
million UK businesses will be employing
AI to some degree by 2040, with
investment in the technology between
now and then due to top £200bn. The
insurance industry is representative of
this trend, with both the home and motor
sectors exploring AI solutions to increase
efficiency and improve customer
experience.
Supporting this, Audatex found that 56%
of automotive aftermarket respondents
believe AI could increase estimating
efficiency - with 51% saying that it could
improve customer service, and half
believing it could also streamline and
accelerate the process of ordering parts.
Meanwhile, digital subsidence claims
expert 360Globalnet has said that AI
used in conjunction with experienced
claims handlers can lead to significant
efficiency gains – particularly in terms of
managing surges in volume. It put this
to the test by asking an AI chatbot to
explain the steps in handing an insurance
claim for subsidence damage to a
property, receiving a response in just 15
seconds.
Potential
While the technology is not infallible
yet, its nascent potential is undeniable.
Across the industry, businesses are
rushing to form new collaborations with
tech partners as a result.
Among them, Aviva last year announced
an agreement with Tractable to
introduce AI technology to its motor
claims process. It believes Tractable’s
ability to assess vehicle damage and
calculate repair costs based on images
alone will reduce repair times and
increase consistency of diagnosis.
Meanwhile, AdvanceCare has adopted
Sprout.ai’s solution to help it manage
and process health claims with greater
efficiency, supporting growth at the
same time by taking low-value repetitive
tasks away from claims handlers, freeing
them up to provide a better service to
more customers.
Elsewhere, Keoghs – a Davies company
- has unveiled a new suite of AI-driven
technology, Lauri CS, that delivers
the best of all existing solutions by
automatically identifying and utilising
relevant applications to achieve valuation
accuracy within minutes.
Damian Ward, Keoghs Head of Motor
and Counter-Fraud, said, “Previously
we’ve seen piecemeal solutions which
can speed up certain parts of the
process, but clients consistently tell
us that they want a simple, integrated
solution to automate volume claims from
start to finish. For the first time, Lauri CS
will enable them to do just that.”
Perhaps the step-change in AI focus
came during COVID-19, when customer
attitudes towards remote solutions
shifted. Now, according to Solera
Holdings, customer trust in AI-driven
claims has risen to 79% globally, with
49% preferring a fully digital self-serve
experience and 43% favouring a hybrid
model of digital and human service.
The research also revealed that 70% of
consumers would consider changing
their insurance provider to one that offers
digital claims technology over more
traditional methods.
Regulation
Of course, full implementation of AI
will require regulatory support, and last
summer the government announced
that it is publishing a new AI white paper
outlining its approach to regulating this
technology within the UK.
A new AI Action Plan is being produced
with industry guidance, to support
businesses wishing to develop AI systems
while at the same time reassuring
consumers that that the technology is
safe and robust.
It focuses on six key principles: ensuring
that AI is used safely; ensuring that it is
technically secure; that it is transparent
and explainable; that it is implemented
fairly; that liability for the system is clearly
defined; and that routes are available for
redress.
No doubt there are many hurdles still to
overcome, but the AI era is dawning and
insurers certainly can’t afford to be left
behind.
MODERN INSURANCE | 61

Delivering happy,
one policyholder at a time.
Our leading-edge ADAS expertise and
technology makes light work of vehicle complexity
The UK’s largest network of workshops providing
convenience, flexibility and choice
Our digital journey is easy, trusted and omnichannel
Our commitment to innovation in sustainability
One contact | Right first time

FEATURES
Welcoming
National
Windscreens:
Q&A with
Simon Hunt
QHi Simon! A huge welcome to
Modern Insurance Magazine’s
Editorial Board!
Why don’t we start by talking about
what you’re up to over at National
Windscreens at the moment. How are
you responding to the supply chain
challenges across the sector?
AHello, and thank you so much for
having us!
At National Windscreens, we’re
focusing on our four pillars: a seamless
customer experience, investing in
infrastructure, our environmental, social
and governance (ESG) strategy, and the
continuous learning & development of our
people across the business. These pillars
guide our focus daily and provide a path to
keep improving our service across the UK.
The challenges of the last few years have
served to fortify our supply chains and
logistics. We are in an excellent position
due to the planning and communication
that took place after the Brexit vote.
This allowed us to strengthen our supply
options and continue to grow our already
substantial stockholding across the UK.
We also increased the number of
distribution centres across the UK to
give greater local access to a wide range
of glass. Alongside our investment in a
wider stockholding, we have developed
our infrastructure with a focus on route
optimisation. These changes have had
a positive effect on the efficiency of the
business by reducing the time and distance
that the glass travels. This means fewer
journeys across less distance and brings
huge environmental benefits.
QLong term sustainability is
a huge priority for National
Windscreens. Tell me more about
these initiatives, and the methods of
implementation across the business.
ASustainability is embedded into
every part of the business, and
I am immensely proud of our
achievements. We will actually be releasing
our sustainability report in Q2 of this year,
which will be our opportunity to show
progress and baseline the whole business.
The report will also present our drive to
meet near-term targets and required
actions moving forward. The results
are being independently measured and
validated, and will serve as our tangible
commitment to environmental progress.
I recently appointed Craig Gibson as our
ESG Manager. Craig has worked with us for
twenty years and possesses a phenomenal
knowledge of the industry. Our research
into alternative fuel is a very exciting part
of our ESG plan, and we are conducting
a hydrogen trial as part of a government
initiative later this year, which should
be fascinating. Innovating is part of our
culture, and we really are so passionate
about reducing our environmental impact.
Q
What benefits have you found
in providing coverage not just
across the UK, but globally?
AAs a founding member of
Automotive Glass Experts, we are
part of a genuinely global network.
This means that we can collaborate
with our other members to share best
practices in sustainability, purchasing and
stockholding. Our long-term relationships
with distributors and suppliers give
National Windscreens an advantage with
access to glass in high demand.
We are leveraging the knowledge of
the Cary Group, the major member
representative of National Windscreens.
For example, we are seeing what lessons
can be learned from achieving repair
rates of 40% in the Nordic regions. Whilst
we are proud of our NPS score, we can
certainly learn from the Nordic countries
who regularly achieve exceptional scores
in comparison.
The synergies available through our
networks bring fantastic opportunities to
learn and share our expertise to innovate
and provide service excellence for our
insurance partners.
QHow are you nurturing your
relationships and partnerships
with insurers to maintain sole
supplier status and competitive edge
within the industry?
AWe focus on what matters most
to our partners. Being as flexible
as possible is the secret to our
success, and we also find that providing a
personal touch goes a long way. Our team
works with insurance partners to deeply
understand the customer journey and
resolve any issues that could occur ahead
of time. It’s a combination of this constant
research by the digital team - alongside
communication with insurers - which
has developed our digital journey into a
market-leading one.
Winning ‘Outstanding Customer Journey’
at the recent Insurance CX Awards
was one example of the success of indepth
customer feedback programmes
into development of the policyholder
experience. Everything we do is designed
to make the process simpler. By providing
detailed and accurate information
right from the start, we can ensure that
decisions on glass type selection and
damage assessment are right first time.
Providing technician tracking and online
booking management are also important
factors in ensuring the best possible online
experience for policyholders.
QSo, tell me more about consumer
duty and your emphasis on being
a customer-first business. How do
these principles add value to your service
offering?
AEverything we do is based on
generating a first-class customer
experience. We achieve this
by consistently providing an efficient
and personable service. The customer
experience must come first.
The NPS scores are a testament to our
customer-first principles. Our omnichannel
approach gives policyholders the type
of communication that suits them, a
seamless journey no matter which channel
they use to contact us - or indeed switch
between as their journey progresses.
Trustpilot offers a great opportunity for
direct feedback from our customers.
On average we respond within two
hours to over 99% of reviews. On the
rare occasion where our service has
not met expectations, our customer
relations team will contact the customer
to establish the situation and address
any issues. Trustpilot also brings insights
that enable us to pinpoint any gaps in
our service, which gives us the chance
to address these issues through training,
process improvement or changes to our
infrastructure. Listening to customers is
also critical to maintaining and improving
our services. We have aligned all aspects
of the business to be integrated into our
customer feedback loop, something which
has proven to be a fantastic investment
and we are now reaping the benefits.
The bottom line is that we build
relationships with partners based on
creating quality, sustainable solutions
that bring a strategic benefit and costeffective
solutions for our partners and
policyholders.
Simon Hunt
Commercial & Services Director,
National Windscreens
MODERN INSURANCE | 63

Welcome
The motor claims sector has witnessed
significant change in the last couple
of years, all of which has affected vast
elements of the supply chain.
Insurers, repairers, accident
management companies – all faced
with unprecedented capacity, parts,
mobility, and resourcing challenges –
must prioritise collaboration more than
ever to see that customer expectations
are appropriately managed, delivering
a seamless customer experience
that makes policyholders feel valued,
recognised and cared for.
This series of discussions presents
an opportunity to explore three varied
topics, looking to discover the ongoing
innovation that’s helping to mitigate the
challenges of elongated repair times
and rising claims costs.
I was delighted to be joined by such
well-respected individuals from across
the industry, all of whom shared valued
opinions and insight from varying
perspectives in the supply chain.
Thanks, and enjoy!
Pete Thompson
Pete Thompson,
Director of Product, Activate Group
MODERN INSURANCE | 65

The Role of
the Repairer
in Delivering
a Seamless
Claims
Journey
Wednesday 8th March,
10am – 12noon
How Data and
Technology is
Transforming
the Claims
Journey
Wednesday 8th March,
1pm – 3pm
CHAIR
Pete Thompson,
Director of
Product,
Activate Group
Mark Neat,
Bodyshop
Manager, Activate
Accident Repair
CHAIR
Pete Thompson,
Director of
Product,
Activate Group
Dan Woods,
IT Director,
Activate Group
Chris Beeby,
Head of Business
Development
– Fleet,
Sopp+Sopp
Rob Hawes,
Managing
Director, Rapid
Repair Network
Andrew Lilley,
Senior Director,
Sales Engineering,
8 x 8
Michael Lewis,
CEO,
Claim Technology
Meeting
Customer
Expectations
in Challenging
Times
Thursday 9th March,
10am – 12pm
CHAIR
Pete Thompson,
Director of
Product,
Activate Group
Heidi Logie,
Programme
Director, Activate
Group
Sharna
Thomson,
Head of
Customer - UK
Claims, Zurich
Wayne Vinton,
Sales Director,
Tractable AI
66 | MODERN INSURANCE

Marc Holding,
Managing
Director, The Vella
Group
Michael
Golding,
LV Network
Manager, LV=
Insurance
Chris Weeks,
Executive Director,
National Bodyshop
Repair Association
(NBRA)
Darren
Entwistle,
Head of
Commercial
Supply, EDAM
Group
Mark Stuart,
Director,
Orbital Repair
Solutions
Jon Capstick,
Head of
Business
Improvement,
Activate Group
Nik Ellis,
Director,
Laird Assessors
& Swiftcase
Daryn
Robinson,
Transformation
Director,
AllThingsCX
Kajal Vaskas,
Senior Vertical
Market Manager
- Claims,
LexisNexis Risk
Solutions
Phil Peace,
Managing
Director, Repairify
Graeme
Howard,
Chief Technology
& Information
Officer, Covéa
Insurance
Paul Templar,
Founder & CEO,
VIPR Solutions
Jack Burton,
Insurance
Partnerships
Lead, EMEA,
Samsara
Vicki Heslop,
Director of CX,
Covéa Insurance
Gerry Brown,
Chief Customer
Rescue Officer,
The Customer
Lifeguard
Tom Lawrie-
Fussey,
Director of
Automotive,
LexisNexis Risk
Solutions
MODERN INSURANCE | 67

The Role of
the Repairer
in Delivering
a Seamless
Claims
Journey
Wednesday 8th March,
10am – 12noon
We’re here for the first of three virtual
roundtables in conjunction with Activate Group,
looking initially at the role of the repairer in
delivering a seamless claims journey.
Pete Thompson, Director of Product at Activate Group, is here to chair
these sessions and outlines his intentions for this roundtable, which will
look at industry trends, customer expectations, data, technology and
automation, alongside our collective vision for the future. Considering the
evolution of the industry in the last few years, Pete turns firstly to Mark
Neat to begin a discussion around his experiences from the perspective of
a repairer.
‘I’ve been in the industry for 35 years,’ says Mark, ‘and I’ve never felt or
seen a situation like the one we find ourselves in at the moment. Some
changes have been positive, but most have altered the customer journey
dramatically.’ He continues, ‘when we look at parts delays, it’s not just backorder
parts causing an issue. Historically, you could estimate a vehicle in the
morning and receive the parts later that same day. Now we’re looking at a
lead time of at least several days, with a skills crisis reducing staffing levels
across bodyshops all around the UK’.
Pete turns to Chris Weeks to ask if this feedback echoes that of his
membership at the NBRA. Chris agrees, stating that he’s never seen such a
situation where ‘demand for repairs far exceeds supply’. Since the outbreak
of COVID-19, Chris observes that capacity across the repairer market is
the primary factor to be considered, with concern around ‘optimal capacity’
taking precedent in recent years over the historic bodyshop mentality of
accepting any and all work. ‘The pandemic created a forced review of
everything,’ says Chris, ‘and the industry only brought costs back in where
they were needed. This change was actually quite a positive thing for the
industry, because it eliminated costs that were never necessary. It’s given the
repair industry a long-awaited health check.’
Marc Holding agrees, stating that we’re ‘really looking for innovation in
repair centres, which isn’t typically found up and down the industry’. He
continues, ‘bodyshops don’t really have an equal seat when you consider
the powerful customers and suppliers that they deal with, and there’s often
a lack of autonomy for bodyshops when it comes to innovation. I think more
so than ever, we’re going to see the repairer embracing those niche areas of
the sector, and the relaxing of the supply chain will probably help with that
quite a bit.’
Pete moves the conversation over to Rob Hawes from Rapid Repair
Network, whose work promises a same-day solution to customers. ‘I can
relate to exactly what’s been said here,’ Rob says, ‘and yet without a doubt,
our biggest challenge is trying to find a technician with the right skillset.
The person going out to the customer to represent our brand has to be
presentable. Feedback from the customer talks about more than just how
good the repair was. There’s plenty of other factors to consider, such as
the quality of our communication and the technician’s conduct at the time
of their visit. We’re lucky in that the majority of cars that we work with are
driveable; we can factor the lead time on parts into the management of our
customer expectations and prioritise convenience. Therefore, the challenge
lies in communication. We need to take that opportunity to reassure the
customer and let them know what to expect’.
On that note, Pete turns to Mark Stuart to gather his take on the
management of customer expectations in lieu of longer lead times. ‘Without
question, customer expectations need to be set higher,’ Mark says,
‘and there are certainly more touch points with regards to the elongated
customer journey that we are now facing. From a capacity point of view, it
really comes down to the way in which the work provider engages with the
repairer – and solutions like live chat can make the experience seamless
in that regard. But the unpredictability around lead times most certainly
increases the amount of communication that’s necessary to have with the
customer, and setting the scene for them has become more imperative now
than it ever used to be’.
So, what does the industry need to do to solve the shortage around skills
and resources? ‘We’ve lagged behind way too far’ Chris says, in relation
to the working conditions of some bodyshops and the way that they are
struggling to retain or attract fresh talent. ‘Consequently, we’ve put ourselves
in a position where there’s more people leaving the industry than joining it.
There are so many sites operating profitably now, unable to expand simply
due to a lack of skilled repairers. I don’t think we will increase the capacity of
our industry until we’ve trained more apprentices to learn about it’.
68 | MODERN INSURANCE

Turning back to Marc at The Vella Group, Pete asks about the success
of their recent recruitment drive for apprentices. ‘We’ve had to recognise
the competition when going after apprentices,’ Marc says. ‘When you’re
going after a repairer, your competition is the bodyshop down the road. But
when you’re looking at the recruitment of apprentices, you’re competing
with a life choice. The choice to go to university or perhaps into another
hands-on technical role somewhere else – it’s a completely different kettle
of fish. We’ve had to take a long, hard look at our offering and position staff
benefits right at the centre of our campaign, looking at working conditions
as well to attract the talent we so desperately need in a way that promises a
fruitful career for that individual.’
Addressing innovation, Pete turns to Michael Golding to gather
perspective around the key to this success at LV=. ‘For us, innovation really
came from looking at industry challenges in real time, and being selective
over who we were working with,’ says Michael. ‘That’s the same for
bodyshops as well. When COVID-19 hit, we were really fortunate to have
a great selection of partners in our network already, and it became obvious
that we needed to nurture those strong relationships, understanding exactly
what they need and vice versa. Close collaboration and transparency is the
key to true partnership. The word ‘capacity’ gets thrown around a lot as a
problem that needs to be solved, yet it’s a controllable problem if you work
correctly with your partners. We’re still faced with challenges and evolving
industry trends, but listening to our network has really seen us through
these last 12-18 months, and I’m confident that this approach will continue
to do so in the months and years ahead.’
Jon Capstick is keen to support this attitude. ‘I quite like the new world,’
Jon says. ‘Traditionally, accident management companies and insurers
have dictated the pace a little bit, but there’s been a seismic shift in that
space now. It’s about finding that common ground and working together to
prioritise the ease of doing business. If you can strike the right relationships
and operate on a level playing field, that kind of collaboration can only have
positive impacts for the customer journey.’
Pete addresses Darren to ask how this has affected process changes for
the customer over at EDAM Group. ‘As much as it was a challenging time,
COVID gave us a real opportunity to look at what we did as a business and
how we did it,’ Darren says. ‘We quickly realised that if we couldn’t put
a car out on hire and provide our customers and business partners with
a service, then we wouldn’t have a business at all. The challenges in the
repair industry address just one area of the supply chain that we’re seeing
issues with, so we had to create a different way of dealing with it all – hence
the ‘commercial supply’ model’.
He continues, ‘the collaborative working relationship that we’ve had
to build - and continue to build - is absolutely paramount. In terms of
communication – yes, we’ve had to review how we pass on difficult
messages to our customers and business partners. This forms a vital part
of our mission to keep the customer informed and on track. We talk about
being a frictionless work provider, and we regularly reinforce that message
to the team. We want touch points with the repairer to be minimal, but we
also need to obtain specific information in order to monitor our hire periods.
There’s a real balance to be struck, and we’re doing a great job but there’s
certainly still a long way to go’.
So, how does the industry manage the disparity between expectations and
reality, when there’s such a steep rise in customer expectations across all
aspects of the commercial marketplace?
Chris Beeby responds to this from a fleet perspective. ‘Consumers are
certainly more demanding than ever before’ he says, ‘and technology
makes the world a much smaller place. From our point of view at
sopp+sopp, expectations are high across the board - from the Depot
Manager with a pool of vehicles, faced with a constant pressure to keep
the fleet moving and operational, to the allocated vehicle perspective where
there’s a delivery driver or an engineer under pressure to complete their
daily tasks – they all expect an impeccable level of service, for fair and good
reason’.
He continues, ‘in terms of reducing some of the burden on bodyshops,
we’d ask if we can complete a roadside repair or a mobile repair as part of
that triage service. Is there a better suited alternative to the bodyshop repair
as default? That alternative solution may very well improve the customer
experience by reducing the amount of time that the vehicle is off the road,
and could provide some cost benefit as well through the avoidance of any
paid-for mobility solutions’.
There’s a short break before the panel reconvene to discuss data,
technology and automation. How are technological advancements
impacting bodyshops and repair centres, and is the recent proliferation of
data proving to be a benefit or a hindrance?
‘When we talk about technology, there’s a lot of noise around the
electrification of cars in particular,’ says Mark Neat. ‘Fundamentally, the
vehicle is repaired in the same way - it’s the technology within the vehicle
that creates the difference’.
Chris Weeks agrees. ‘Bodyshops are having to invest in the training
of their people, MET technicians and equipment to manage the risk of
increased technology in vehicles,’ he says. ‘It’s a big responsibility for the
repairers; there are so many safety systems on the car now, and lots of
potential for things to go wrong. Yet the industry does a fantastic job of
managing this and getting the repairs right first time’.
So, what about the approach to technology within business operations?
‘The industry is still lagging years behind from a digital perspective,’ says
Marc at The Vella Group. ‘We’re not approaching it as an ecosystem like
a lot of other industries would, and we’re finding most of our IT systems
quite restrictive to our business model. We’re trying to work out how
we can streamline conversation in the supply chain without the need for
micromanagement, and that’s why we’re trying to build our own systems
from scratch for some components of our business. We can’t expect
a heavily dominant software company to know what the best technical
solution should be for a bodyshop or repair centre’.
Pete moves on to ask if fleets are prepared for data and technological
transformation. Are they seeing as much of a challenge?
‘There’s varying degrees of appetite for digital transformation,’ says Chris
Beeby. ‘Some are more forward thinking and will embrace new and
innovative technologies, whereas others will view it as a barrier to entry’.
He continues, ‘the ones that benefit are the ones that are open to change
and willing to go on that journey. Initiatives such as eNOL - or even the
instigation of a digital reporting journey through in-vehicle technology,
telematics and apps - can create that proactive and seamless customer
journey - all due to the information that we’ve got at our disposal’.
Michael echoes this approach. ‘It’s our goal to have a completely
seamless claims journey at LV=, with minimal touch points. We measure
our updates to get things running as smooth as possible, and we know
immediately when something isn’t working correctly because we’re
immediately notified by the repairer community. This seamless journey is at
the absolute forefront for us, and it really enables our customers to get the
swift and great attention that they require’.
However, there’s possibly a really fine balance between too much data, and
not enough. Mark Stuart addresses this when he observes ‘a lot of data
going backwards and forwards which isn’t really adding any real value’.
He continues, ‘a lot of insurers possess different claims systems, so a lot
of different people want a lot of different things. Going forward, I think we
need to re-engineer our focus and start putting the consumer at the heart
of the digital space’.
Pete steers the conversation to address our final point for the day around
the industry’s future vision. Where is investment and innovation most
needed in the claims journey?
Rob shares the fact that his primary goal in the immediate future revolves
around volume, ‘trying to get more vans and more technicians on the
road’. He continues, ‘we know there’s work out for there for us, but if we
don’t react to this and find a way to streamline our communication with
customers, we will start to face capacity challenges before we know it.’
In terms of development at EDAM Group, Darren confirms that there’s
plenty of work ongoing at the moment to ‘provide a lot more integration
with business partners moving forward’. ‘The majority of our business
partners want connectivity through an API (Application Programming
Interface)’ Darren says, ‘and that’s a key thing for us to prioritise so we
have that two-way communication when we need it. Investment in IT
infrastructure is absolutely vital for us when it comes to our future vision.’
Jon is the last to respond with an astute takeaway from the roundtable
discussion. ‘Without a doubt, technology and effective communication
underpins every element of the claims journey,’ Jon says. ‘Yet an
understanding of consumer choice and preference is the key to getting
this right. If a customer wants that human element to their claim, that’s the
service they’re entitled to receive. We have to keep working hard and find
the right mechanism to achieve that for the consumer.’
MODERN INSURANCE | 69

How Data and
Technology is
Transforming
the Claims
Journey
Wednesday 8th March,
1pm – 3pm
The second of three roundtables looks at how
data and technology is transforming the claims
journey. Pete Thompson, Director of Product at
Activate Group, returns to chair the session and
outlines his agenda.
Firstly considering the issues faced by the industry in recent years,
Pete asks the panel to consider some of the greatest achievements
in technological advancement as a result of - or in spite of - these
established industry challenges.
Michael Lewis is the first to respond from his perspective as the CEO of
Claim Technology. ‘Claims have traditionally been processed manually,’
Michael says. ‘As an industry, we’ve learnt that we can’t always assume
the availability of claims handlers. Recruiting people is both incredibly
difficult and expensive, so we are seeing an acceleration of technology
successfully substituting the human element of the claims journey
wherever possible. On the customer side, we’re also seeing faster claims
resolution from integrating AI into the customer experience’.
Andrew Lilley supports this. ‘Automation, AI and chatbots are very
relevant topics at the moment’ he says. ‘There’s also a lot around the use
of video and video technology to increase efficiency’. This is seconded
by Daryn Robinson, who is also keen to emphasise the pioneering
success of video technology. ‘Automating through video is one of the
main things we see at AllThingsCX,’ Daryn adds. ‘There’s a lot of positive
factors involved, such as the saving of staff time, reduction in fuel usage
and other economic cost benefits. The touchpoints must be very light,
and it must all connect in the background to create a smooth process for
the customer. But overall, it’s brilliant to see technology being embraced
in this way’.
Pete turns to Kajal Vakas in order to gain some perspective around
how technology can be used efficiently to ingest data at FNOL stage. ‘It’s
really about being able to leverage data at the right point in the customer
journey,’ Kajal says. ‘We can build a great picture of the issue when
we’ve got the right data, at the right time. Yet when we consider new,
emerging technologies, we must think not just about connected cars but
also about the connected driver. It’s really all about understanding how
people choose to be mobile, and then insurers can leverage that data to
really comprehend more about their client’s mobility needs and choices.
Subsequently, as and when that client is to make a claim, we have more
options when it comes to keeping that person moving around. It doesn’t
necessarily have to be a replacement car when we’re in a position to
embrace that sort of holistic view’.
So, what about insurer attitudes when it comes down to adopting this
technology? ‘There’s a spectrum of adoption within the industry,’ Kajal
acknowledges. ‘Some big, incumbent insurers are like big ships; it’s very
difficult for them to turn, especially if they don’t have innovation hubs or
teams set up to help them test, learn and understand what’s new. We’re
seeing this understanding of mobility needs increase across Europe, but
I haven’t seen it to the same extent in the UK yet despite the consumer
appetite for a more personalised service’.
On the back of this, Phil Peace continues to emphasise the significance
of data, specifically that which is available from our connected, modern
vehicle. ‘The data that’s captured from cars, through onboard cameras
for example, can be sent directly through to the manufacturers, and then
onto aggregators through pre-existing arrangements between parties,’
Phil says. ‘This will open up that data from the claimant perspective and
give information to the claims handler right from the outset, which can
speed up decision making as part of the claims process. The technology
is certainly there, but perhaps it’s not quite joined together just yet!’
Pete then turns to Paul Templar, Founder and CEO of VIPR Solutions,
for comment around the impact of technology specifically in the
underwriting arena. ‘Some of the technology emerging within the claims
journey is fascinating,’ Paul says. ‘From the remote assessment of
claims right through to AI and chatbots, it’s an amazing thing to witness.
At VIPR, we’re primarily seeing the journey of data from the Third
Party Administrator (TPA) through to the insurer. Until very recently, this
data transfer was almost entirely conducted through mechanisms like
Microsoft Excel spreadsheets, different bordereaux management data
formats with hundreds, sometimes thousands of data inputs with a very
low barrier to entry. Anybody can access that information, and yet there’s
also a lot of effort required to extract the data, check it, transform it and
70 | MODERN INSURANCE

store it in a centralised data cloud. We’re promoting the digital transfer
of data through an ecosystem approach instead, and I’ve particularly
noticed that insurers are starting to recognise the technical maturity of
the partners they’re working with when they’re considering how they’re
going to do business’.
Nik Ellis agrees with this observation. ‘The technology that we’ve
implemented in the last 12 months has made a massive difference for our
client’s clients,’ he says. ‘We’ve been advocates for API connections and
moving data around for a long time, albeit not with Excel spreadsheets!
We’re harnessing video integration, photography inspections and all
of these things, especially since the pandemic - and it’s a much better
system than that which went before. The data we’re building from this is
tremendous’.
With that in mind, Pete turns to Graeme Howard to ask how he
chooses areas of focus and suitable solutions in a market which boasts
such a growing number of options. ‘We really have had to look at areas
of improvement where we can see added value and efficiencies quickly,’
says Graeme. ‘This demonstrates the helpfulness of investment in
these technologies, and the ability to interconnect with other partners
helps us to look at the same information across the business, using that
accordingly in the best interests of the customer’.
Dan Woods agrees with this omniscient approach. ‘Generally, everything
is on paper at the bodyshop,’ Dan says, ‘and it’s about looking at how
we can sync that up to get business progressing in the right way. We
need to embed the roadmap that we want to see into the systems that
we come to use, and ensure that there’s longevity there as well. We don’t
want to invest in something that will leave us lagging behind in a few
years and won’t give us the same sort of benefits, not to mention the
impact on customer satisfaction when it comes to rolling out these new
technologies. It’s important to keep all of these things in mind when we
consider suitable solutions’.
Touching on this mindful approach to implementing new technology,
Pete asks Andrew Lilley about the responsibility of the supplier in
relation to understanding the market and customer needs. ‘When
you’re looking at automation technology, you’ve first got to understand
a number of things,’ Andrew says. ‘What problem are you trying to
solve? What are you trying to automate? You also need to think about
the customer journey and how you’re getting them to interact with your
business. There are things that you can automate quite easily which can
then be harnessed to your benefit, like extending operating hours and
augmenting the customer experience. But I would just advise everyone to
approach automation from a simple starting point. Don’t try to automate
everything all at once, as this is likely to result in issues’.
‘But nothing can be perfect at the beginning,’ Daryn adds. ‘Through
using data driven insights to see how the touchpoints are working, we
can harness our agility to switch tempo if something isn’t performing
as we thought it might. For example, at AllThingsCX we will obtain the
requirements and build a platform to suit those requirements before
the test and go-live stages. Having built something in an agile way, we
can produce quick changes - and great technology in the customer
experience space makes these adjustments really easy to make. It’s not
like the old days of legacy systems at all’.
So, how do we accommodate the fine balance between great customer
experience and the needs of multiple suppliers in an end-to-end claims
journey? ‘At the moment, we’re talking about the shift from thinking
in terms of ENOL (Electronic Notification of Loss) to EROL (Electronic
Resolution of Loss),’ Michael says. ‘Insurers have taken a productcentric
view to digital claims transformation, and in doing so they’ve
created the digital equivalent of a traditional, telephony based FNOL. But
a customer-centric claims experience should focus on resolution rather
than notification! Claim Technology’s no-code platform enables insurers
to orchestrate dozens of insurtech capabilities from different providers in
real time and resolve a customer’s claim in that single moment of truth,
with zero touch’.
Pete asks if the motor claims industry is being dragged by customer
expectations, as opposed to taking ownership of dictating the pace.
When it comes to the customer claims journey, how should the industry
set the standard of what to expect - and harness technology in doing so?
‘The shift from ENOL to EROL is all about putting control back into the
hands of the customer,’ agrees Kajal. ‘People are enamoured with
the concept of instant service and proliferated data, and that’s why we
see so much success with apps like Deliveroo and Uber. Information
is reassurance for the customer, and real time information about the
status of a claim will also reduce the likelihood of that customer calling
up to ask questions. If you can give all of that information over to the
customer pre-emptively, most would be happy to take ownership of their
claim as long as it’s made easy for them. This also gives time back to
the Claims Handler and leaves them free to deal with the more complex
cases, where that human empathy is really needed to resolve those more
emotive circumstances’.
With this in mind then, how do we avoid alienating the customers who
will always want to pick up the phone and speak to someone? ‘There’s
definitely got to be that omni-channel approach on behalf of the insurer’,
says Graeme. ‘Especially when people are going through a difficult time,
of course they might be more inclined to want to speak with someone
about the status of their claim instead. But as long as the data is in the
right place to serve the right experience, I think most customers will
generally be quite happy to utilise technology in order to progress and
resolve their claim’.
The panel disperse for a short break before returning to discuss a
final point around the future of technology and the likelihood of full
automation. ‘I’d love to see a direct connection between systems,’ Paul
Templar states. ‘We’re definitely starting to see that play out, and there’s
certainly much more chance of that happening now with the scope of
technology available. That being said, there’s still an awful lot of older
technologies in use within the market at present – a lot of old policy
administration systems for example, and many old brokerage systems
too. They don’t necessarily have that capability to connect easily with
other platforms, and it’s hard to implement changes to these systems
when historically, everything has been working well. Our area of the
market will really want to see a return on investment with anything new,
and that in itself can be very tricky to implement’.
Phil is particularly eager to consider technology growth within our
vehicles when we consider the future of motor claims. ‘When we talk
about the motor claims journey specifically, I’d say the biggest thing
to consider would be around the future of car manufacturer data at
the point of incident,’ Phil says. ‘How can that data be shared and
worked into the process with aggregators to enhance the efficiency of
the journey for all involved? We’re also closely watching developments
in Artificial Intelligence and Machine Learning; there’s certainly huge
potential to streamline the front end of the claims journey with AI. At the
back end it’s more about consolidation of data, perhaps getting systems
to speak to each other more and allowing consumers access to that
information all in one place. Finally, of course we need to factor in the
prevalence of repairs that have ADAS and other safety related equipment
on board. This is only going to increase as we look towards the future,
and we have to make sure that we continue to secure the right repair for
that particular equipment’.
From the perspective of existing business operations, Nik would like
to see improvements in Visual Intelligence software - particularly when
it comes to complex vehicle assessing. ‘Our VI technology will pick up
total loss,’ Nik says, ‘or something at the other end of the spectrum,
like small scrapes on a bumper. However, when it comes to assessing
vehicle damage that falls somewhere in the middle, my personal wish
is for VI to get a lot better. When this happens, that’s when we’ll be
completely touchless, completely remote, and everything we do should
then fold quite happily into that seamless claims process’.
Dan gives the final word on his predictions for the future. ‘Ideally, we
want to get all of that data together so we can build on those Machine
Learning and AI algorithms,’ Dan stresses. ‘At the moment, there’s a
load of data sat with many different elements of the supply chain, and it’s
really important that we look into ways of putting all of that information
together to facilitate accurate, ‘right first time’ decision making. Digital
self-service is really going to provide an excellent opportunity for cost
control, hopefully with a positive overall impact on the policyholder and
their premiums’.
MODERN INSURANCE | 71

Meeting
Customer
Expectations
in Challenging
Times
Thursday 9th March,
10am – 12pm
Our third and final roundtable of the series
puts the customer at the very heart of the
conversation. Pete Thompson, Director of
Product at Activate Group, introduces the
panel and opens up the floor for this conclusive
discussion.
Starting with a deep dive into industry trends, Pete asks the panel
to firstly consider the ways in which the motor claims industry has
had to adapt its approach to customer service in order to ensure that
consumer expectations are managed.
Heidi Logie is the first to respond. ‘Harnessing data was an obvious
place to start for us,’ she says. ‘At Activate Group, we’ve really
identified where our hotspots are in the last 12 months or so, and
then we’ve used that data to identify the growth that’s required
within our network. It’s about using technology to support the claims
process, not to mention the utilisation of mobile repair – even if this
is just a temporary solution to make the vehicle roadworthy again
whilst the customer is waiting for a long-term fix. It’s really all about
communicating with that customer up front; letting them know what
delays to expect right off the bat, and keeping that communication
consistent throughout the duration of the claims process. Automation
of comms, and tailoring each communication in accordance with
customer preferences, really does go a long way in terms of supporting
the customer through that challenging time’.
Sharna Thomson echoes this sentiment. ‘The events of recent years
have really demonstrated a wonderful sense of camaraderie and
collaboration within the supply chain,’ Sharna says. ‘We’ve all had to
work together to do the right thing for the customer, and part of this
process has involved creativity and willingness to implement alternative
solutions. For example, we’ve really made the most of this opportunity
to look at our sustainability initiatives at Zurich. Customers can opt
out of receiving a courtesy car and will now be offered vouchers to
purchase a bicycle; instead, they might wish to make a charity donation
to the value of £100, or they can even facilitate the planting of a tree.
These options – including our endorsement of green, recycled car parts
– all give the customer a lot of flexibility in the face of these existing
challenges, and it provides us with a great opportunity to look after that
ESG side of the business as well’.
Tom Lawrie-Fussey agrees that concern around parts availability has
really accelerated the uptake of green parts within the motor repair
ecosystem. ‘It’s been fascinating to see the way that these two things
have come together,’ Tom says. ‘It demonstrates that two agenda
items really can merge into one solution when you’ve got innovative
thinking and a willingness to offer alternative options to the customer.
Reclaimed and recycled parts are great for the environment, and they
will get those policyholders back on the road much quicker. It’s been
amazing to witness such a dynamic approach and see that shift in
consumer mobility solutions’.
Pete concurs that transparency and collaboration have both played a
significant role in the way that our motor claims journey has adapted
in recent times. He turns to Vicki Heslop to enquire about Covéa’s
approach to transparency in the supply chain, especially when all
parties involved are equally affected by the same circumstances.
‘Our teams have always embraced the partnership approach across
both home and motor claims divisions,’ Vicki says. ‘Although we’ve
seen a significant increase in uptake recently, we’ve also been using
green parts now for a number of years. It’s certainly been about refining
that collaboration with our suppliers in order to keep the customer front
and centre of the claims journey in this new world’.
‘I’ve also found that there’s actually quite a lot of consideration on
behalf of the consumer when it comes to understanding how tough
things are for us right now,’ Vicki adds. ‘Yes, we’ve found that we need
to do more talking and explaining around the technical aspects, and
of course customers are frustrated. But by no means are these issues
exclusive to insurance, motor claims and repairs. Many industries are
affected by the same challenges at the moment, and the majority of
customers are actually really understanding of that’.
72 | MODERN INSURANCE

From the perspective of working across multiple organisations, Gerry
Brown agrees that collaboration and cross-functional teams are highly
impactful - especially when this is juxtaposed with the right data and
the right technology at the right touchpoints in a customer journey. ‘All
of this relevant and accurate data and information gives confidence to
a claims handler,’ Gerry says. ‘They develop assurance in their ability
to deal with the complexities of that claim or enquiry, knowing that they
are fully informed and supported by the data and technology available
to them. You must also let your customers know what’s going on. Being
kept out of the loop is the primary cause of frustration, and it can really
impact that customer experience. We should certainly try and give our
customers a manageable number of contact options wherever possible,
and front-line staff should have the right technology and the right
information available to facilitate confident and productive consumer
engagement’.
So, how else can data and technology deliver improved customer
experiences? From a fleet management perspective, Jack Burton
acknowledges that technology providers should not be adding to the
list of problems for their customers, especially when there’s already a
host of existing challenges that are being navigated every day. ‘First
of all, we’ve got to consider the ease-of-use angle,’ Jack says. ‘How
can we collect all of this data, and make it super easy to share with
an insurer, TPA, or whoever else it may be? Then we’ve got to look
at how we can consolidate systems so the data is all in one place
instead of being spread across multiple platforms. We’ve established
that communication is vital in the customer experience; they need to
be updated and informed as much as possible as developments in the
claims journey arise. Samsara really harness and combine that data
- location data, video footage from vehicles and so on - to make the
claims journey as easy as possible for our clients and insurer partners’.
Wayne Vinton agrees. ‘There’s really a market out there for optimising
data and information for the customer,’ he says. ‘Many companies out
there use this as a differentiator, and I know that Tractable certainly
share that vision and adopt this approach to customer interaction. If we
look at the Mobile Banking industry, for instance - we can bank in real
time, so why shouldn’t we be able to manage our insurance claim in
real time? We’re delivering FNOL decisions now in a matter of minutes,
and putting money in a policyholder’s bank account within 60 minutes
of the claim being notified. There are insurers out there who are actually
offering that pristine level of service excellence, and yet there’s still
significant friction in the claims ecosystem - originating predominantly
from the poor distribution and sharing of data up and down the supply
chain. It’s fair to say that this is a huge mitigating factor when it comes
down to delivering that seamless claims journey’.
There’s a shift in the discussion now to address consumer trust.
How can insurers work harder to gain and maintain the trust of their
policyholders, not just in challenging times but also in more general
terms?
‘Trust will come with the building of a relationship,’ Sharna says, ‘and
I think that the skills of those involved within the insurance industry
is evolving to incorporate not just those ever-important technical
skills, but more emotional intelligence, more empathy and an ability to
effectively deal with vulnerable customers, too. That being said, trust
in insurers will always come from that end point moment of truth. Does
the insurer pay out when they say they will, and deliver on the terms
of the coverage and the policy? The reputation of insurers is such that
customers often believe their insurer will find any loophole to avoid
paying claims, and that’s simply not true. We need to look at consumer
education and focus on that relationship building element if we’re going
to build trust with our policyholders and demonstrate fair value’.
Heidi supports this. ‘Our training academy now encompasses specific
courses about managing customers and customer expectations,’ she
says. ‘We’ve got a session all about putting ourselves in the customer’s
shoes – encouraging staff to take a step back and think for a minute
about the reality and impact of being without your car, especially
for vulnerable customers who may rely on their car for mobility and
independence. In building trust, it’s so important to recognise the
situation from the customer’s viewpoint and pre-empt the questions
that they’ll naturally want to ask. For me, there are two measures of
customer satisfaction, and that’s ‘trust’ and ‘ease’. How trustworthy
are you as a company, and how easy are you to work with? If you’re
measuring these core factors and instilling those principles into the
teams that you’re training, I’m confident that you’re going to build
consumer trust as a result’.
Vicki echoes this from her experience, too. ‘The products and policies
in general insurance can be very complicated,’ Vicki says. ‘There’s a
lot of detailed documentation to deal with. Customers don’t always
understand the jargon, and the moment of truth is always the point of
claim. Certain things might not be covered, or not covered to the extent
that the customer had initially thought when they purchased that policy.
Excesses might be higher than expected – there are all kinds of factors
which make insurance a very complicated product indeed. However,
insurers are making huge progress in simplifying communications and
products, and I am optimistic that the new Consumer Duty will bring
about the change needed to reignite the trust factor between insurer
and policyholder. ‘Trust score’ measures and metrics have really been
useful for us at Covéa in recording that progress’.
So, what are the common pitfalls when companies and organisations
attempt to change or adapt their customer service strategy?
‘Particularly when you’re looking at chatbot technology,’ Gerry says, ‘if
the rationale behind it is solely about call avoidance, you should really
start to re-evaluate the way you’re approaching that customer service
strategy as a business. Take serious time to consider what it is that you
want to say to your customer through the AI chatbot interface, whether
that be text or speech. Time spent on conversational design should
match that of training the human equivalent - and while I understand
that chatbots are not going to pick up on empathy, sentiment and
emotion in quite the same way as their human counterpart, when
implemented correctly I really do think that this technology can be an
effective customer service strategy. You just have to be prepared to
invest that time upfront, understanding the experience that you want to
deliver, the tone of voice and all of those other mitigating factors that
can significantly impact the customer experience’.
There’s a short break before the panel reunites to briefly consider a
final point around consumer futures, and key opportunities for industry
investment. Looking ahead, where are the biggest opportunities for
innovation in order to enhance the customer experience in the months
and years ahead?
Wayne shares his outlook of the future by reinforcing the importance
of getting the basics right first, especially at those early consumer
touchpoints in the claims process. ‘FNOL stage is generally the first
interaction between insurer and policyholder when it comes to that all
important customer journey,’ Wayne says. ‘Getting that right first time
is absolutely vital, and there are still plenty of easy wins to be grasped
there in the early triage stage of motor claims. There’s plenty of scope
for improvement around data, technology, the renovation of green
parts – all of this is possible, with very minimal effort as long as the
foundations are solid’.
Jack is keen to cite three primary areas of focus in his vision for the
future. ‘The key lies in automation, consolidation, and the overall
simplification of complex processes,’ Jack states. ‘How can that
ENOL piece change through IoT devices or in-built vehicle technology,
in order to capture the right data? There’s a lot of industry discussion
around antiquated legacy systems in the insurance sector, and the
multitude of different systems we have that are still in use across
the supply chain. We’ve now developed the ability to aggregate and
normalise data into a single platform, so it really is a realistic possibility
for everyone to work from that single system of record. For the
customer, the complete simplification of the claims journey is the end
result – and if the vehicle tells half of the story through its on-board
digital capabilities, and computer systems within the supply chain all
speak to each other without any friction, I really think that the whole
process can be revolutionised and vastly improved by technology’.
Tom summarises this final point by considering the overall design of
the triage process in motor claims. ‘How elegant can that immediate
triage process be?’ Tom asks. ‘In doing that really well, I think we’re
giving ourselves a chance in this sector to really improve that process
for the claimant, and ensure that we are steering away from slow,
heavy-handed procedures. If we’re speaking to one of our customers
on a personal level as an insurer, this really should be due to a
complexity somewhere in the claims process or a request from the
customer for contact. If this isn’t the case, we should harness the
technology and design an approach that can absolutely nail the simple
claim first time. The art of the triage comes down to a fine balance
between data and technology, common sense and an efficient process
- and if we get that bit right, I think this will be a massive gamechanger
for the customer experience’.
MODERN INSURANCE | 73

INSURTECH
INSUR.
TECH.
TALK
MODERN INSURANCE | 75

INSURTECH
WELCOME
to Insur.Tech.Talk Issue #9!
It’s great to be here, taking the reins from Bradley in this very special,
forward-thinking section of Modern Insurance Magazine. Thank you
so much for all of your hard work with Insur.Tech.Talk, Bradley – I can’t
wait to see where this takes us!
This panel was put together in March during Women’s History
Month. As such, I have chosen a rock-star panel composed of some
of our industry’s most trailblazing female leaders. They will share their
perspectives on the following industry trends, with an opportunity to
offer advice at the conclusion of each Q&A to the next generation of
female leaders in insurance.
AI and advanced machine learning are among the top strategic
technology trends that leading organisations are currently using
to reinvent their business for a digital age. Machines now play a
significant role in customer service, from the initial interaction to the
determination around which coverage a customer may need.
According to a recent study, the majority of consumers are happy to
receive such computer-generated insurance advice. Consumers are
seeking personalised recommendations, made possible by machine
learning algorithms that review their profiles and recommend tailormade
products. At the front end, insurers are making wider use of
chatbots on messaging apps to resolve claims queries and answer
simple questions.
The airwaves blew up when ChatGPT came onto the scene last
November. While AI and machine learning are not exactly new
developments, these technologies have certainly gained traction and
fall among the most interesting and controversial topics to explore
right now in insurance and innovation.
We will be exploring both the promise and limitations of this
technology, especially as it relates to the human experience.
Happy reading!
Megan Kuczynski,
President,
Insurtech Insights
76 | MODERN INSURANCE

INSURTECH
Risk
Creativeenrolment, QJanene, so great to catch up! I’m loving your new
and billing areas. After purchasing or updating
newsletter, ‘Risktaker.’ One of your recent articles,
‘Disruption or Displacement,’ is also the perfect tone
setter for our topic of AI in this edition of Insur.Tech.Talk!
Tell me how you feel about the evolution of AI in the last 5
years. What do you predict will happen in the next decade?
AI immediately think of smartphones as a prime
example of how AI has changed (and changed us).
We certainly weren’t using fingerprints and facial
recognition to unlock our phones 10 years ago - that was
James Bond stuff. Security has also received a huge boost
with AI advancements, leading to better and safer customer
experiences. I buy coffee every day with a simple flick of my
watch and don’t think twice about it.
That leads to where AI is going. In my opinion, we
have two critical areas of focus: Customer Expectation
and Governance. Firstly, particularly in the health and
benefits arena, the industry is so far off from where most
other consumer services are at in relation to Customer
Expectation. People expect to know where to go for what
they need, how much it will cost them, and the feedback
of other consumers. Our industry has yet to apply the
power of AI to create an integrated, holistic experience
for someone’s overall health. The lack of such leaves them
woefully open to disruption and extinction.
Governance is equally critical. Technology in general, and
particularly with AI, is evolving faster than we can prepare
for. We are at a precarious crossroads of harnessing power
for the good of all, and ensuring its use is executed with the
necessary ethical standards - not to mention the varying
opinions of what is ethical in the first place. It’s like trying to
build a plane while it’s already in flight. Beware that such a
plane is likely to fail.
QHow will your consultancy, RiskCreative, challenge
the status quo in the broader insurance industry as
it relates to AI technology? What current and future
strategies are in place at RiskCreative that you will use to
guide insurers and enhance the customer experience?
RiskCreative applies hands-on experience with
pragmatic solutions. Many of our frameworks and
A approaches were developed using the concepts of
Edward de Bono, such as Lateral Thinking and The Six
Hats method. In many situations, we are also able to apply
our ‘Start at the End’ thinking, which is quite useful in an
old industry like insurance. Starting at the End allows us
to remove the knots, if you will, that have been created
over a century of tying together similar and disparate
insurance processes. It also provides an understanding of
what the true end result is intended to be for each critical
stakeholder, so we may ensure that intent is supported from
the beginning to the end.
QWhat challenges do you see around the rate of
adoption on the carrier side?
A
Firstly, we have insurance experts that are not digital
experts and vice versa. Because of that alone, many
carriers invest in ‘right now’ solutions, believing they
are long-term. But at the current speed of digital evolution,
they’re not. This causes massive technical debt and
exacerbates the age-old issue of legacy system patchwork.
Carriers also tend to begin their digital enhancement
journey at the beginning, particularly in their underwriting,
their Policy Administration System along with 3+ years of
developing APIs in those three ‘starting’ areas, bottlenecks
develop in customer-critical areas such as claims. Carriers
should focus on embracing the capabilities of Managing
General Underwriters (MGUs), Wellness Platforms, Payroll /
HRIS systems, and Benefit Administration Platforms to rethink
how distribution, binding and claims could be enhanced
within their organisation. It’s a big risk for carriers to give
up the (albeit weak) holds they have in traditional sales
practices, policy delivery, and benefit enrolment. But they
must be honest with themselves about where their strengths
lie and what their core business is.
QWho is making the greatest advancements in AI in the
insurance industry at the moment, and what are they
doing?
ANayya is a great example of a forward-thinking solution
to a perpetual issue in the benefits industry: benefits
education and product selection. Their AI-powered
decision tool asks a customer a few questions, and then
suggests which available products would suit them best
for their risk level and budget. This has been a welcome
alternative to broker and carrier-hosted enrolment meetings,
where employees sit through long, confusing presentations
about the products available to them, resulting in low
enrolment and underinsurance.
I’d love to see more AI involved in health and benefits. The
real problems are in the messy, dangerous areas regulated
by HIPAA, PHI protections, ACA, and ERISA - medical care,
risk behaviours and desired treatments vs. limitations to what
an employer provides. Real advancement comes when the
people who buy these products are better off because of
them.
QWill AI eliminate jobs in the insurance industry?
AI tackle this very question in my Disruption or
Displacement article. Yes and no. AI will eliminate
unnecessary jobs, just as it will create more meaningful
opportunities. Manual, repetitive work is disappearing, and
we should all celebrate that.
QJanene, you are a very inspiring female leader. What
has helped you get to where you are today, and what
advice would you have for others who want to set off
in a similar direction?
AWhile it wasn’t apparent to me until recently, I realise
I have always followed my interests: puzzles and
healthcare. I’ve certainly never been one to shy away
from a challenge. My ambitions motivated me to want
more, to do better - as an individual and as an organisation.
However, none of this happened without people who
believed in me. In my most immature, rough-around-theedges
days, I had leaders who saw what I could be, not what
I currently was. That’s a key difference between a manager
and a leader. What I hope to help others believe is that they
are talented, they are unique, they have a combination of
experiences, understanding, and skills, that - with focus and
intent - can put them at the top of the game. The challenge
is figuring out which game that is for them. Following
interests and being reflective of your life experiences is the
way to find out.
Janene Jonas,
Founder, RiskCreative
MODERN INSURANCE | 77

INSURTECH
Benekiva
QBobbie, huge congratulations on winning the Chief
Technology/Digital Officer of the Year Award by
Altaworld!
Firstly, I’d love to know how you’ve seen AI change in
recent years?
It’s amazing to see the various use cases for AI,
especially since we’ve seen such a transformative
A effect in the insurance landscape over the last five
years. Common use-cases include:
• Improved risk assessment: Leveraging AI algorithms
can analyse vast amounts of data from a variety of
sources to assess risk more accurately, whether this
is in pricing, reduced losses, and/or managing carrier
risk exposure.
• Enhanced fraud detection: We have seen many AIpowered
fraud detection systems that can analyse
claims data, identifying patterns and anomalies that
could be indicative of fraudulent activity. This enables
carriers to detect fraud more quickly and accurately,
reducing losses and improving profitability.
• Streamlined claims processing: AI can automate
many aspects of the claims process. In the
LAH space, we are leveraging an AI model that
consumes Death Certificate data; where we can
automatically identify various information, including
causes of death for claims automation alongside
downstream reporting for actuaries. Our goal is
to reduce the time and cost of claims processing,
improve customer satisfaction, and provide data to
various departments that need claims data within
the organisation. With a long term care scenario,
the invoice processing engine will increase staff
efficiencies because the data pull from invoices is
completed automatically.
• Personalised customer service: AI-powered chatbots
and virtual assistants can provide personalised
customer service, including answering questions
and providing claims status. This improves customer
satisfaction and reduces the workload of customer
service staff.
Overall, AI has revolutionised the insurance industry in the
last five years - driving greater efficiency, accuracy, and
profitability. As AI technology continues to evolve, we
can expect even more transformative changes to further
improve the areas outlined here.
QHow will Benekiva challenge the status quo in
the broader insurance industry as it relates to AI
technology? What current and future strategies are
in place that insurers can use to enhance the customer
experience?
A
We are challenging the status quo in multiple ways
when it comes to the claims experience. For example,
our long-term care solution challenges the status
quo of claims administration in long-term care - which
is currently very manual and extensive – upgrading to a
system which claims staff can use on their iPhone. We have
incorporated Open AI to automate invoice processing, and
our Portal 360 offering creates stakeholder views, such as
‘facility view’ and ‘claimant view’ for the purpose of real
time status updates.
As we look to the future, we want to build more
partnerships and integrations to elevate claims by
incorporating an advanced decisioning engine to further
streamline the claims process; engaging claimants in new
and alternative ways whilst integrating with third-party data
sources to support the claim and stakeholder journeys.
QWhat challenges do you see in terms of the rate of
adoption on the carrier side?
The challenges I see mostly point to legacy systems,
legacy processes and legacy thinking. There are ways
A to combat these challenges - not by using them
as a crutch, but by identifying the opportunity for a new
way of working. No one can wave a magic wand to fully
eliminate legacy systems, but there are strategies and newer
platforms in place like Benekiva, which can help carriers
leverage modern technology whilst they’re on the journey
to modernisation.
Legacy processes are similar - and if you aren’t challenging
the status quo, learning from the industry and building
a network of peers from different sectors, it will be very
difficult to keep up with innovation. For me, legacy
thinking is by far the most dangerous factor here, which
can generate resistance from employees and stakeholders.
Carriers will need to invest in change management and
employee training to overcome these challenges.
QWill AI eliminate jobs in the insurance industry?
AI will transform the insurance industry and
change the nature of many jobs, automating job
A responsibilities that were routine and simple in nature.
With the rise of AI, we will see people being leveraged in
complex work where there is a need for human decisioning.
We will see more technical roles arise, such as data
scientists, AI developers, and ML experts. I’m excited about
the ways in which AI will create new opportunities and
augment existing roles, enabling carriers to operate more
efficiently and profitably.
QBobbie, you are a very inspiring female leader. What
has helped you get to where you are today, and what
advice would you have for others who want to set
off in a similar direction?
A
There is a Japanese proverb that says ‘fall seven times,
stand up eight’. Never give up! I’m very self-aware
of my strengths and weaknesses, and I never allow
excuses to get in the way. Being genuine has also allowed
me to build an amazing network that continues to grow.
Our industry is difficult to navigate, and I’m blessed to be
surrounded with leaders that believe in collaboration and
are willing to support without the feeling of obligation and
wanting something in return.
I would encourage others to always be genuine. You will go
a long way if you’re honest with where you are at, ask for
feedback and continue to build your network with good
and honest people. You should also hold your ground.
As a female leader and entrepreneur, many people make
assumptions that aren’t true. It’s okay to stand your ground
around what you believe. People will throw out phrases
which will make you shake or doubt yourself. Listen to your
gut and stay true to who you are as a person.
Bobbie Shrivastav,
MBA, PMP, PMI, ACP, CSM, Co-Founder and COO, Benekiva
78 | MODERN INSURANCE

INSURTECH
Cowbell
Cyber
QAlexis, great to catch up!
I’d love to know how you’ve seen AI change in the
last 5 years? What do you predict will happen in the
next decade?
AAI began as a state of experimentation, rapidly
becoming embedded in every data and decisionmaking
process across (almost!) all industries. AI
has subsequently become a critical differentiator for many
businesses with a digital component to their operations.
This rapid adoption will continue with a wave of new talent
who are well versed in digital technology. As AI talent
becomes more common, I foresee that AI will cross the
chasm and become mainstream.
QHow will Cowbell Cyber challenge the status quo
within the broader insurance industry as it relates
to AI technology? And what current and future
strategies are in place at Cowbell to enhance the customer
experience?
ACowbell has already challenged the status quo
in cyber insurance within the US. The broker
and customer experience are also of paramount
importance to us. We basically use AI to eliminate manual
steps - automating processes that were previously
too convoluted, or processes which were tapping into
information already digitally available in systems. Why ask a
person to rekey data unnecessarily?!
By far, our most significant innovation touches on the
underwriting process, where our underwriter has the
complete scope of data and insights around individual risk
or industry trends at the tips of their fingers. As a result of
this, they can make better decisions with speed. AI-assisted
underwriting removes bias, enforcing a consistent discipline
and opening a wide range of opportunities, starting with
predictive analytics to make sense of the voluminous
amount of data we have available in cyber.
QWhat challenges do you see in relation to the rate of
adoption on the carrier side?
A
Carriers have so much data at hand that the use of
AI is a non-negotiable upgrade for them and the
partners they work with. The broad use of AI to make
sense of the large volume of data in use in insurance will
become a key differentiator. Without AI, you are limited to
what the human brain can comprehend and you can’t go
fast with changes when new risks or new trends emerge.
QWho’s making the greatest advancements in AI
across the insurance industry at the moment, and
what are they doing to warrant this success?
AI have to mention Cowbell here, as we are so proud
of what we’ve accomplished. AI is at the core of the
business that we started to build four years ago. This
is how we differentiate from incumbents, and where we also
generate many ideas for the near future so we can continue
to bring efficiencies in the cyber insurance process.
QDo you think AI will eliminate jobs in the insurance
industry?
ANo, quite the opposite! AI will enhance the jobs of
many in the insurance industry. We should not forget
that insurance is a relationship business where trust
needs to be established between a policyholder, the agent
and the insurer. AI can help us to achieve this!
QAlexis, our relationship was born over LinkedIn!
You are a very inspiring leader, and huge congrats
to you on your rise to AVP of Agency Marketing.
Your posts about work-life balance really resonate with
others. What has helped you get to where you are today,
and what advice would you have for others who want to
set off in a similar direction?
AI’ve definitely created a version of work-life balance
that works for me. I am being intentional about my
time, even if it’s one day a month. I decided to force
a complete shutdown that allows me to be present at home
to reset, which will allow the space for creativity to happen
over and over again at work.
With regards to my career, I took an untraditional approach
into insurance. I started out at the agency level, moved to
brokerage and then over to the insurtech and fintech space.
I’ve always been focused on education and relationship
building, rather than hard selling any policyholder or broker.
I quickly learned that I could win higher quality deals that
way. I brought this same mentality into educating the
22,000 brokers that I work with at ‘Cowbell Academy’ - the
first Cyber Insurance e-learning center created by a leading
standalone cyber insurance provider.
I would advise other professionals not to be afraid of
thinking outside of the box. You cannot be afraid to grow
and allow yourself to be stretched as a professional. This
is what it takes to elevate in your career consistently. And
everyone’s career path will look different! I certainly took a
Z career path instead of a straight one. That’s what makes
me a unicorn professional in the insurance industry. It’s okay
to not have a straight career path. Yours can also be a ‘Z’,
you just have to make all the dots connect.
Alexis Cierra Vaughn,
Global Award-Winning Insurance Expert & AVP of Agency
Marketing, Cowbell Cyber
MODERN INSURANCE | 79

INSURTECH
Tapolyand training
QHi Janatha!
I want to start by asking how has AI changed
in the last 5 years, and what do you predict will
happen with regards to AI in the near future?
AOver the last five years, AI and ML have
become more sophisticated and accessible to
companies of all sizes. Insurers are using AI to
automate tasks such as underwriting, fraud detection,
claims processing and customer service. The use of
AI is expected to increase over the next decade, with
more focus on explainable AI and responsible AI.
Explainable AI will help ensure that AI decisions are
transparent and explainable, while responsible AI will
prioritise ethical considerations.
QWhat will insurers do to challenge the status
quo in the broader insurance industry as it
relates to AI technology? And what current
and future strategies are in place to enhance the
customer experience?
ATo challenge the status quo, insurers will need
to adopt innovative solutions such as those
offered by insurtech companies like Tapoly.
These solutions include customisable products, data
analytics and chatbot technology. Current strategies
for enhancing customer experience include providing
more personalised insurance products, using chatbots
for customer service, and leveraging data analytics to
improve risk assessments. In the future, insurers may
adopt new technologies like blockchain and IoT to
further improve customer experience.
Q
What challenges do you see when it comes to
the rate of adoption on the carrier side?
AWell, the adoption of AI by carriers can be
slowed down by several factors. Legacy
systems may not be compatible with newer
technologies, making it difficult for carriers to
integrate AI into their operations. Additionally, there’s
a learning curve for some insurance professionals to
go through before they fully understand how to use
AI effectively. Insurers will need to invest in education
to ensure their employees can take full
advantage of these new technologies.
QWho is making the greatest advancements in
AI in the insurance industry, and what are they
doing to achieve this?
AInsurtech companies are driving innovation
in AI and ML in the insurance industry. These
companies are nimble and agile, allowing them
to adapt and innovate quickly. They are using AI for
customer service, underwriting, and fraud detection.
By using these technologies, Insurtech companies can
provide insurance products that are more personalised
and easier to purchase.
QWill AI eliminate jobs in the insurance
industry?
AWhile AI may automate certain processes, it
also creates new opportunities. AI can help
insurers to more efficiently manage their
workload, allowing them to focus on more complex
tasks. Additionally, AI can provide insights that can
lead to new product development and business
opportunities. The adoption of AI will require
carriers to retrain and reskill their employees to take
advantage of these new opportunities.
QJanthana, you are a very inspiring female
leader. What has helped you get to where you
are today, and what advice would you have for
others who want to set off in a similar direction?
AI attribute my success to my passion for
entrepreneurship, hard work, and perseverance.
I’m always advising others to focus on their
strengths, learn from failures, and surround themselves
with a supportive network. Additionally, I’d encourage
women in particular to be confident in their abilities
and pursue their goals fearlessly.
Janthana Kaenprakhamroy,
Founder and CEO, Tapoly
80 | MODERN INSURANCE

INSURTECH
IRYS
Insurtech
QMargeaux, it’s so great to connect! And
congratulations on the launch of IRYS Insurtech!
I’m really keen to hear your vision for the new company,
as I’ve really enjoyed your unique perspective on tech
trends while you were leading GoGiles. Drawing on your
experience however, I’d like to know how you’ve seen
AI change in recent years. And what do you predict will
happen in the next 5 to 10 years?
AIn the last 5 years, AI went from conceptual to
proof; from idea to tangible. Not only tangible
but readily available with the release of OpenAI’s
products and their partnership with Microsoft.
I predict that AI will rapidly develop as we see industries
embrace and implement it into our daily lives. I hope that
in 10 years, AI has progressed to heights we can’t even
comprehend at the moment!
QWhat will IRYS Insurtech do to challenge the
status quo in the broader insurance industry as it
relates to AI technology? What current and future
strategies are in place at IRYS that you will use to guide
insurers to enhance the customer experience?
A
Irys has a laser focus on fundamentally changing
the way that we distribute insurance. There are
business practices and workflows so ingrained
in this industry that we haven’t really stepped back and
asked, is this process even necessary anymore? We are
working with AI to bring intelligence beyond the point of
‘analytics,’ and into workflow augmentation.
QWhat challenges do you see in terms of the rate of
adoption on the carrier side?
ALegacy technology, fragmented systems and
user adoption are always the largest pain points
when it comes to adopting anything in large and
convoluted systems, the likes of which carriers tend to
possess. However, I think a new pain point is likely to arise
that we might already be witnessing slightly now, which
is the lack of talent available to bridge the complexities
of insurance with new technology available on the market
today.
QWho is making the greatest advancements in AI
across the insurance industry at the moment, and
what are they doing to warrant this success?
AI have seen some amazing things coming from
the healthcare side of insurance when it comes
to generative AI - and some very interesting
AI in dynamic underwriting, too. I have my eye on the
distribution space though, as I’m interested to see how AI
can be used to enhance the insured experience.
QSo, do you think AI will eliminate jobs in the
insurance industry?
AI don’t think it will. In order for AI to be truly
autonomous, it needs a whole lot of data. While we
might have a notion of that in insurance, it will take
quite a feat of collaboration across many key stakeholders
to really model an AI that would eliminate the need for
humans entirely. Also, we mustn’t forget that at the end of
the day, our consumers drive the need. Ultimately, it will
be up to them whether they choose AI interactions over
human ones.
QMargeaux, you are a very inspiring female
leader. What has helped get you to where you are
today, and what advice would you have for others
who want to set off in a similar direction?
AI can boil it down to two key takeaways.
I started asking for mentorship very early on in
my career, and I wasn’t picky about industry. However, I
did seek guidance from those I thought were incredible
leaders. I once spent a whole summer in a low paying
receptionist job for a CEO of a large land developers
office, just so I could listen in on how he closed large
acquisitions. My most important piece of advice though
would be to choose your inner circle - your spouse, your
close friends, your co-founders and partners - with the
utmost care. I truly feel you become part of who you
surround yourself with.
Margeaux Giles,
Founder and CEO, IRYS Insurtech
MODERN INSURANCE | 81

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INSURTECH
Check out our new
website for the latest
interviews and blogs
www.moderninsurancemagazine.co.uk
To get in touch and find out how you
can be featured in the magazine call
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82 | MODERN INSURANCE

INSURTECH
EDITORIAL
BOARD
WELCOME to the Insur.Tech.Talk
Editorial Board.
Modern Insurance
Magazine once again
brings together the
thoughts, insights and
musings of our resident
insurtech experts.
This time, we’re looking
at Artificial Intelligence
in the insurance space.
To what extent has AI
disrupted the sector in
recent years? How can we
balance AI, automation
and the human elements
of our industry? Where
does underwriting fit into
the heart of our business,
and what promise does AI
hold for the future?
This issue voices the thoughts of:
Daniel
Thafvelin,
Group CEO,
Contemi
Solutions
Denise
Garth,
Chief Strategy
Officer,
Majesco
André
Symes,
Group CEO,
Genasys
Tim Hardcastle,
CEO and
Co-Founder at
INSTANDA
MODERN INSURANCE | 83

INSURTECH
The Promise
of AI in
Insurance
As data becomes ubiquitous, Artificial Intelligence and its related
technologies will create a seismic impact on many aspects of the
insurance industry, from distribution and underwriting to pricing
and claims. This fits well with our mission to facilitate seamless
information flow in the insurance industry, fostering efficient and
data-driven processes with a human first approach.
Daniel Thafvelin,
Group CEO, Contemi Solutions
The combination of available data and AI/ML has huge
potential to improve the industry’s cost performance,
reduce protection gaps, increase customer experience and
create transparency. While some might argue around the
latter part, transparency is likely to receive assistance from
legislation on these services.
We are already seeing a growing confluence of data
coming from varied contributors in the insurance
ecosystem, all of which has resulted in better insurance
products positioned at the right price points in the market.
Although the adoption of AI is rudimentary today, it is
quickly becoming the frontier of change in the insurance
industry. Early adopters of the technology have seen
their processes gaining efficiency, such as underwriters
receiving support on managing portfolios instead of
reviewing every single submission. The more standard,
predictable claims are being handled by machine learning
algorithms, and human intervention is being restricted to
cases that need higher-order decision-making and human
emotional intelligence.
It is important for insurers to invest in future ready
backend systems that are able to work with these services.
However, it is not just backend processes that AI has finetuned.
AI is also changing the perception of customer experience.
With newer open-source natural language processingbased
tech solutions like ChatGPT, insurers can completely
redefine their customer engagement approach.
Here are some other ways we think AI might impact the
insurance industry in the years to come –
1. Risk assessment
Natural language understanding (NLU) could enable
insurers to filter more abstract sources of information
- such as online reviews, social media postings, and
grievance reports - pulling necessary information
together to better assess the potential risks involved,
and their impact. In an industry where price has
more significance over competing products, a more
accurate risk assessment and an individualised pricing
model could make a big difference.
2. Fraud detection
AI can identify fraud in your current portfolio through
detecting patterns of behaviour that might escape
human cognition. However, predictive models of AI
can also alert carriers to probable fraud scenarios
before a policy is issued.
3. Data collection
The data chain in the insurance industry is long and
complex. Every piece of information passes through
multiple stakeholders between the carrier and the
policyholder, leading to a vast scope for human error,
not to mention a huge amount of manual work that
slows the process. However, AI enriched solutions
like Seamless.Insure which embrace an ecosystem
approach have already started to support this
challenge, whilst reducing time and human error by
completely digitising the collection of data. With
Seamless.insure, our customers can get automated
data extraction, and prefilled forms reduce the amount
of data entry and re-entry to increase accuracy across
the board.
AI holds strong potential for improving operational
efficiency, controlling costs and enabling insurance
companies to pivot to a digital-first customer experience.
We help insurance businesses get a jump start on their
digital transformation journeys.
Visit us at https://Seamless.insure.
MODERN INSURANCE | 85

Majesco’s got you covered,
no matter what.
With shifting risk factors and new customer expectations,
underwriting is more important now than ever.
Stay ahead of the competition with Majesco’s Underwriting
Workbench to unlock all the data you need, when and
where you need it.
www.majesco.com

INSURTECH
Underwriting:
The Heart of the Insurance Business
Underwriting is the heart of the insurance industry. From evaluating individual risks and
exposures, to undertaking a portfolio assessment of risk, risk appetite and profitability,
underwriting is becoming increasingly crucial - with shifting risk factors including weather,
climate, societal, technology and more. Underwriting is making major moves by accessing
more data sources to gain new risk analysis insights, simultaneously creating improved
experiences for agents, brokers and customers.
Operationally, a combination of digital business solutions
including next-generation core, loss control, underwriting
workbench, AI/ML models and ingestion of internal and
external data sources enable real-time risk management,
underwriting and intelligent decision-making.
Our consumer and SMB research highlights customer
willingness to share their data to gain personalised ratings
based on their own risk, in order to manage costs. However,
many insurers cannot meet these expectations, creating an
opportunity to leap ahead competitively. This is highlighted
by the following two examples.
Group and Benefits Insurance
The product design of employee benefits is in constant
flux, driving the need for advanced analytics to understand
what employers, sponsors and participants find appealing.
Capturing, enriching and using data for identifying
opportunities - and then delivering a relevant, engaging
experience for employees - is crucial for Group and Benefits
providers.
Whether the data is structured, unstructured, real-time IoT
(wearables) or machine-generated, using advanced analytics
enables the creation of tailored sales propositions and
personalised underwriting. A compelling digital customer
experience in alignment with employee needs will foster
deeper trust, engagement and increased sales.
Data and analytics allow insurers superior connection with
the employer to unlock potential revenue. When looking
at a case and underwriting it, AI/ML can help identify
opportunities to upsell and cross-sell additional voluntary
products to plan members, maximising the value of the
overall group plan. These digital experiences encourage
employees to enrol and enhance the benefit plan, deepening
the relationship and increasing revenue.
Property Insurance
Property risk is getting complicated. The pressure for
underwriting profitability, particularly given the 2022 poor
loss ratio results, is increasing the focus on underwriting, AI/
ML capabilities and enhanced risk avoidance/mitigation - all
of which are driven by data.
Risk management, underwriting and loss control gathers and
uses data needed for AI/ML models to accurately assess and
identify risk. We can now use real-time, historical and thirdparty
data from a number of sources, such as; loss control
surveys, IoT, photos, real-time data from smart devices, geo
spatial, video, policy, billing, claims, and unstructured data
across the value chain.
Insurers use of this richer data with advanced AI/ML can
improve risk assessment, appetite analysis, underwriting and
pricing that drives intelligent decision-making. By identifying
hazards and providing
recommendations
as data is collected,
insurers can create
more value by
proactively addressing
issues, driving
improved profitability
and customer service.
Are you meeting
customer
expectations with
data and analytics?
Majesco is, and your
customers expect it
too.
Denise Garth,
Chief Strategy Officer, Majesco
MODERN INSURANCE | 87

INSURTECH
Managing
the Balance:
AI, Automation and
the Human Touch
André Symes,
Group CEO, Genasys Technologies
Smart insurance businesses recognise that they can’t
make a decision about how automation is used by
their clients and policyholders, knowing that a choice
must be offered throughout the customer journey.
At Genasys, we say that you use technology when you want to and
you speak to people when you need to. Most consumers are more
than willing to buy insurance through a website or through the
conversational user-interface element of AI. But when it comes to
making a claim because you’ve just had a car accident, you don’t want
to deal with a chatbot that hasn’t quite passed the Turing test.
However, the application of AI is a decision wholly-owned and used by
an insurance business to improve customer experience and business
efficiency. On the Quote and Bind side of insurance, you can really
lean on AI to help you make better, faster choices and improve the
customer-buying journey. Right now, using a simple rating table gives
everyone a generic price. Human error and biases mean that if one
policyholder is being charged too little, someone else is making up the
difference. Applying Machine Learning to the Quote and Bind process
optimises the purchasing experience based on models of habits and
preferences, using specific data points to assess policyholder risk to
result in correct and fair pricing.
We’ve seen AI succeed in insurance where it sets out to solve a
specific industry problem, such as fraud detection. For example, we’re
now working with a partner who has developed facial recognition
technology to assess the customer’s facial expressions when submitting
the FNOL. This gives the claims assessor an early indication of the
likelihood of fraud, and significantly improves the claims process for the
policyholder and the business.
Insurance is rarely clear cut, and of course the data you receive when
applying AI for decision-making is only as good as the data entered.
In most cases, the best decisions rely on the human element, such as
the Claims Handler or Loss Adjuster, augmenting the data with the
more complex emotive reasoning that AI still can’t match. We mustn’t
forget that.
My view is simple. The use of technology in all its forms should focus
on helping insurance businesses to offer the best policy price and
customer experience - from offering that first cost-effective quote, all
the way through to quickly making a claims payment. If the insurance
industry can collectively start from the viewpoint of using technology
to better serve all customers and to deliver on policy promises - rather
than focusing on self-serving needs - then we can change the way we
do insurance, and ultimately the public perception of our industry.
MODERN INSURANCE | 89

INSURTECH
Tim Hardcastle,
CEO and Co-Founder at INSTANDA
Quickfire
Questions
with Tim Hardcastle
QTo what extent has AI disrupted
the sector in recent years?
AWithin the insurance sector,
insurance companies are
already using AI to increase
efficiency and improve customer
service. If we think about the overall
process of insurance, data and
algorithms remain an integral part of
the process to calculate premiums
and offer customers more personal
insurance products. AI tools can help
insurers improve underwriting as well
as monitoring and predicting risk. For
example, AI can be used to analyse
a customer’s health behaviour based
on the data collected from a wearable
device or a smartphone. This allows
insurers to ingest risk data at scale, and
provide a better understanding of the
insured’s risk for underwriting.
At the front end, conversational
AI applications such as automated
chatbots are now in use to help insurers
deal with customer enquiries. These
tools offer human-like interactions
between computers and human, and
they are available to customers 24/7
in order to respond to a request much
faster.
On the claims side, the use of AI
applications makes the processing
and settlement of claims more
efficient for customers. This leads to
a better claims journey and customer
experience. Another area in which AI
solutions are commonly applied is fraud
detection. AI solutions help insurers
tackle the problem of fraud, becoming
increasingly sophisticated by analysing
data from multiple sources in order
to identify suspicious claims. This can
potentially help reduce huge costs
associated with fraud.
The application of AI has made
significant impact throughout the
industry and insurance processes.
The next wave of AI applications is
where we are going to see seamless
integration of AI capabilities, and
customer data will herald a new dawn
of integrated, contextual, personalised
real-time insurance. It’s really just
around the corner!
QWhat advice would you give
to incumbent insurers that
are struggling with digital
transformation, and how can they look
to startups for additional support?
A
On the one hand, insurance is
incredibly data intensive. On the
other, startups use technology
and data at the core of their business,
and they generally produce more
effective and efficient results as a
consequence. By working together,
startups can help incumbents become
more agile and bring products to
market faster.
I would encourage insurers to look at
scaleups as well as startups. Startups
are more likely to be at the bleeding
edge of AI capabilities, and whilst
working with startups can be a way
to see early application of new ideas,
it can also be noisy and messy - as
experimentation often is! However,
working with scaleups who are typically
in the phase of leveraging modern
technology capabilities for a large
customer base tends to be less of a
rollercoaster type interaction. Scaleups
have developed great product market
fit, and have removed the uncertainty
factor as a consequence.
90 | MODERN INSURANCE