AI and Humans:
Synergies in Insurance
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AI in Insurance
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What Computers Are
Best At
Repetitive Tasks
Mathematics
Data Manipulation
Parallel Processing

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Mainstream Best Practice● Roboadvice● Automated underwriting● Claims triage● Suspicious transactions● Next best offer, cross-sell and up-sell

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Roboadvice
Objective, individualised insurance
product recommendations

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AutomatedUnderwriting
Categorising Insurance Applications:Standard
Sub-standard
RejectCopyright © DataRobot, Inc. - All Rights Reserved

Claims Triage
Automatically flagging claims for immediatepayment versus manual review.

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Suspicious
Transactions:Fraud & AML
Automatically flagging applications andclaims for special review.

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Next Best Offer,
Cross-Selland Up-Sell
Marketing campaigns optimised for individual
customer characteristics.

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Rapidly Becoming Best Practice● Next best action● Smart customer dashboards● Duplicate customer records● Disputes

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Next Best Action
Engaging communication with customers andleads, individualised for both content andtiming.

Copyright © DataRobot, Inc. - All Rights ReservedSmart Customer
Dashboard
Know your customer:
Churn probability
Next best offer
Net promoter score
Lifetime customer value

Copyright © DataRobot, Inc. - All Rights ReservedDuplicate Customer
RecordsFlag customer records that may be duplicatesof each other e.g. slightly different spelling oraddress.

Copyright © DataRobot, Inc. - All Rights ReservedDisputes
Which disputes will end up in legal action?
Which ones can be solved by negotiation?

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The AI-Driven Insurer
Website / Sales
Banner and Content
Personalization

Strategy

PricesPackages

Marketing

Gives Feedback

Logistics

HelpsCustomer
Services

Price
Elasticity

Smart Customer
Dashboard

Text Mining+ Sentiment Analysis+ Net Promoter Score

Customer

LeavesCompetitors

Product / Service

Agents and Brokers

Churn Prediction

SupportITSecurity+ CRM / Lifetime Customer Value+ Duplicate Record Detection

HRLegalFinanceOperations

Attrition Modelling,
Hiring and Succession

Fraud Detection+ Dispute Development

Forecasting+ Automated Authorizations

Automation

Risk Management

Risk Scoring+ Underwriting+ Suspicious Transactions+ Claims Reserving

My Personal Career Journey – From Actuary to Data Scientist
Website / Sales
Banner and Content
Personalization

Strategy

PricesPackages

Marketing

Gives Feedback

Logistics

HelpsCustomer
ServicesPriceElasticity

Smart Customer
Dashboard

Text Mining+ Sentiment Analysis+ Net Promoter Score

Customer

LeavesCompetitors

Product / Service

Agents and Brokers

Churn Prediction

SupportITSecurity+ CRM / Lifetime Customer Value+ Duplicate Record Detection

HRLegalFinanceOperations

Attrition Modelling,
Hiring and Succession

Fraud Detection+ Dispute Development

Forecasting+ Automated Authorizations

Automation

Risk Management

Risk Scoring+ Underwriting+ Claims Reserving+ Suspicious Transactions

Actuarialtasks

My Personal Career Journey – From Actuary to Data Scientist
Website / Sales
Banner and Content
Personalization

StrategyPricesPackages

Marketing

Gives Feedback

Logistics

HelpsCustomerServices

Price
Elasticity

Smart Customer
Dashboard

Text Mining+ Sentiment Analysis+ Net Promoter ScoreCustomer

LeavesCompetitors

Product / Service

Agents and Brokers

Churn Prediction

SupportITSecurity+ CRM / Lifetime Customer Value+ Duplicate Record Detection

HRLegalFinanceOperations

Attrition Modelling,
Hiring and Succession

Fraud Detection+ Dispute Development

Forecasting+ Automated Authorizations

Automation

Risk Management

Risk Scoring+ Underwriting+ Claims Reserving+ Suspicious Transactions

Actuarialtasks

My Personal Career Journey – From Actuary to Data Scientist
Website / Sales
Banner and Content
Personalization

StrategyPricesPackagesMarketing

Gives Feedback

Logistics

HelpsCustomer
ServicesPrice
Elasticity

Smart Customer
Dashboard

Text Mining+ Sentiment Analysis+ Net Promoter ScoreCustomer

LeavesCompetitors

Product / Service

Agents and Brokers

Churn Prediction

SupportITSecurity+ CRM / Lifetime Customer Value+ Duplicate Record Detection

HRLegalFinanceOperations

Attrition Modelling,
Hiring and Succession

Fraud Detection+ Dispute Development

Forecasting+ Automated Authorizations

Automation

Risk Management

Risk Scoring+ Underwriting+ Claims Reserving+ Suspicious Transactions

Actuarialtasks

My Personal Career Journey – From Actuary to Data Scientist
Website / Sales
Banner and Content
Personalization

StrategyPricesPackages

Marketing

Gives Feedback

Logistics

HelpsCustomer
ServicesPrice
Elasticity

Smart Customer
Dashboard

Text Mining+ Sentiment Analysis+ Net Promoter Score

Customer

LeavesCompetitors

Product / Service

Agents and Brokers

Churn Prediction

SupportIT

Security+ CRM / Lifetime Customer Value+ Duplicate Record Detection

HRLegalFinanceOperations

Attrition Modelling,
Hiring and Succession

Fraud Detection+ Dispute Development

Forecasting+ Automated Authorizations

Automation

Risk Management

Risk Scoring+ Underwriting+ Claims Reserving+ Suspicious Transactions

Actuarialtasks

Human Roles in Insurance
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What Humans Are
Best At
Communication and Engagement
Context and General Knowledge
CreativityEmpathy

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When Customers Wanta Human…
“humans are inherently social creatures who
get emotional value from seeing andinteracting with one another”
Source: https://hbr.org/2018/02/the-parts-of-customer-service-that-should-never-be-automatedCopyright © DataRobot, Inc. - All Rights Reserved

Lessons From Banking
Research has shown that “when banking
customers used the ATM more and the teller
less, their overall level of satisfaction with thebank went down”
Source: http://onlinelibrary.wiley.com/doi/10.1111/j.1937-5956.2010.01151.x/abstract

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AI / Human
Synergies in Insurance
Copyright © DataRobot, Inc. - All Rights ReservedUse AI For
Transactions andProcessing
Let the AI do work that is mundane, withpredictable outcomes, and high volume.

Copyright © DataRobot, Inc. - All Rights ReservedUse AI To
Triage Problems toHuman Staff
AI can refer difficult judgement callsto humans.
For mainstream day-to-day processes, leave it
to AI to give speedy solutions.

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Facilitate HumanInteractions
Don’t push customers away. No more “Select1 to update your password,
Select 2 for a premium payment…”
Give customers the option to contact a human
up-front. Then empower that human with AI
driven knowledge e.g. smart customer
dashboard
Copyright © DataRobot, Inc. - All Rights ReservedEnhance Workflows
That Involve Humans
Smooth the process so that technology doesn’t
distract from human interactions.
Get AI to triage what staff see.
Show customers which person is helping them,and the status of the process.
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Make Staff andCustomers Visible toEach Other
Particularly for emotional issues.
Don’t make unsolicited emails the maincommunication line.

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Reengineering Insurance
Jobs and Hiring
Copyright © DataRobot, Inc. - All Rights ReservedHire Staff forSoft Skills andCommon Sense
Not for procedural skills.

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Set Staff KPIs and Job
Descriptions
to Be About Engaging
Customers
Not about the number of closed cases.

Copyright © DataRobot, Inc. - All Rights ReservedUnderwriter
Key skills:• Common sense• Verbal judo

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Claims Manager
Key skills:• Compassion• Verbal judo

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Actuary•

Key skills:• Curiosity• Communication
Converting predictions into decisions

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Summary
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The Human Touch
Free up your humans to:•

Use soft skills with customers• Apply common sense• Create new solutions• Evangelise new ideas• Generate sales and profit
Copyright © DataRobot, Inc. - All Rights ReservedYour staff will be more valuableand productive when you freethem from the mundane, to dowhat they are best at.

Questions?
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Colin Priest
Senior Director of Product Marketing
DataRobot
colin@datarobot.com