Expert Highlights Usage Of AI In Insurance Value Chain
Mr. Ebo Richardson
A computer expert and a Non-Executive Director at Digital Transformation Strategy Delivery, Ghana, Mr. Ebo Richardson, has highlighted various ways that Artificial Intelligence (AI) is being used across insurance value chain to accelerate the sector’s expansion and growth in West Africa.
In his presentation titled “Development of AI Across Insurance Value Chain,” at the just concluded 2024 West African Insurance Companies Association (WAICA) Education Conference at Accra, Ghana, Mr. Richardson said Artificial Intelligence (AI) is a brand of computer science that uses computational models to perform tasks that previously required human Intelligence.
He listed the branches of AI to include Machine Learning; Natural Network; Natural Language Processing and Robotics.
Ebo explained that Machine Learning uses sample data to train computer programmes to recognise patterns based on algorithms.
Natural Network, he said, uses Computer systems designed to imitate the neurons of the brain.
He said Natural Language Processing is the art of using the ability of AI to understand speech, as well as understand and analyse documents; while Robotics, according to him is the use of machines that can assist people without actual human involvement.
Ebo affirmed that AI is already extensively used in various areas namely: Digital Assistants, Search engines, Social media, Online shopping, Robots, Transportation and navigation, Text editing and autocorrect, Fraud prevention, Predictions, Gaming, Healthcare, Advertising and Analytics.
On what AI brings to the party, according to Mr. Richardson, include Data analysis, manipulation and reporting; efficiency and huge processing capacity; cost and operational efficiency; enhanced problem-solving capability and automation, Robotics and generative AI.
Key aspects of the Insurance Value Chain, he stated, are Product Development; Marketing, Sales and Distribution; Underwriting/Pricing; Claims Processing and Servicing.
“Product Development: Insurance products and services becoming increasingly personalised; products and services somewhat commodities, calling for differentiation via experience.
“Marketing, Sales and Distribution: Increasingly competitive landscape calling for more effective marketing, sales and distribution.
“Underwriting/Pricing: online/digital channels provide direct access and data entry capabilities; data analytics support improved risk management, fraud controls, and pricing mechanisms.
“Claims Processing: Claim adjustment process becoming more effective due to increasingly automated and digital capabilities.
“Servicing: Digitally-enable servicing leading to reduced acquisition and servicing costs, greater control for customers etc, Mr. Ebo explained.
On Insurance and AI Synergies/Uses, the Computer Expert said: “It enhances delivery of efficient customer support; helps in claim fraud detection and prevention; helps in insurance pricing and underwriting; enhances accelerated claims processing; supports claims reserve optimisation; helps in personalised recommendations and ensures prediction of customer churn.
AI adoption in Insurance Businesses, Ebo explained “Undertake limited pilots/Proof of Concepts (PoCs)- to enable safe/controlled entry into the space and allow useful learning that will help shape Policy and Strategy.
“Align Policies and Strategies accordingly – using appropriate guidance and learnings from PoCs etc, develop the required transformational strategies and policies etc.
“Get help if needed – Source support from experts, if and where needed; also develop/source AI-related talent to work internally.
“Perform Architectural reset – Based on policies and strategies, review key elements of the Company’s Architecture to ensure readiness.
“Prioritise and execute solutions – Initiate AI-related projects, prioritising customer-centric ones, and some low-hanging fruits as well as automate rule-based processes.”
