Swiss Mobiliar‘s (Switzerland) new tool makes use of internal and external data sources. It transforms unstructured data (including free text, images, video and audio files) into structured data in order to make it easier to extract information which can be analysed and used to aid decision-making.

The system is efficient; it can work 24 hours a day. It provides sophisticated, valuable insights to support evidence-based management decisions, allowing Mobiliar to steer away from decisions based on intuition. It uses every data source that is allowable from an ethical and legal perspective. The system also helps to provide commercial clients with risk advice, based on the analysed data.

AI and machine learning can help with a range of activities, such as fraud detection and understanding customer needs better. Perhaps the biggest impact for insurers is in underwriting, pricing and claims handling, as it can improve these processes quickly.

Swiss Mobiliar is already piloting cognitive computing, using IBM Watson, to support underwriters and agents dealing with commercial policies for SMEs. It will not replace underwriters or claims agents, but will support them, allowing them free up their time from routine tasks to concentrate more on value-added tasks, including innovating and time on customers interactions. As the system is used, it builds up more data and becomes even more effective. It increases efficiency; finds files that may have been “lost”; and helps agents select risk codes more effectively.

Insurers need to start experimenting with cognitive computing now. Start the journey by working with employees so that they do not fear (being replaced by) the new technologies. Also, show customers that you are using their data responsibly, at the same time bearing in mind the relevance of the new technologies for the business. Each organisation needs to select the right technology to address its own challenges.