Montoux recently collaborated with Amazon Web Services (AWS) and AIA on a webinar entitled ‘AI and advanced analytics in life and health insurance - understanding the data and technology foundations required for success.’ The webinar addressed the key challenges limiting insurers from getting the most out of AI and advanced analytics, what tangible steps can be taken to discover value, and where an insurer should start when implementing these new technologies.
- Nghiep Luu, General Manager Data Analytics at AIA
- Terry Buechner, Global Alliances lead at AWS
- Nathan Thomas, Director of Data Science and Multinational Sales at Montoux
Julian Balasingam, Director of Sales and Marketing at Montoux
Key Insights from the webinar included:
- Some of the key reasons why many data initiatives haven’t taken hold include: siloed data, limited access to external data, lack of IT resources preventing stakeholders from leveraging existing data, archaic core systems, managing potential data biases.
- Some challenges that are unique to life and health insurance with regards to data analytics include: privacy concerns, regulatory issues, risk-averse and policy-centric culture, legacy core systems and data architecture.
- It’s incredibly important to have people internally who are both technically able to support AI initiatives, but also dedicated to supporting the AI vision of a company.
- Having good data architecture in place is a vital first step in meaningful data and AI initiatives. One way to achieve this is creating a data lake on the cloud to liberate data and open it up for advanced analytics.
- Insurers should start pragmatically. Find areas that are simpler to solve but impactful, build up to transformation, and work towards ultimately investing in and developing successful POCs that are collaborative and give teams the confidence to continue innovating.
- Develop an understanding and roadmap of how AI technologies can help solve for the most material business issues.
“This kind of change needs to be driven from the top-down. If you’re building something bottom-up, you won’t have the necessary alignment to change the organization to make a substantial difference.” - Nghiep Luu
“The scalability, flexibility, cost efficiency, and the value added services you can put on top of a cloud-based data lake far outweigh any reluctance insurers may have.” - Terry Buechner
“The customer is the key point to begin with. You have to ask yourself, ‘do I really understand my customers and what they value?’ If you can’t answer those questions then you’re in trouble, and I think AI plays a big part in being able to segment your customers and understand exactly who they are. Without knowing this you can’t know whether or not you have the right products, prices, and services in the market.” - Nathan Thomas
Montoux is a Financial Services Competency Partner of AWS.