Uploaded byKim Escherich
Cognitive Insurance
The document discusses the transformative impact of cognitive computing and IoT on the insurance industry, emphasizing the need for organizations to enhance digital intelligence and personalize customer experiences. It outlines various use cases for cognitive systems, highlighting benefits such as improved risk assessment and customer engagement, alongside the necessary changes in business models. The document suggests that leveraging cognitive technologies can help insurers overcome operational limitations and adapt to evolving market demands.
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Cognitive Insurance
- 1. 1 COGNITIVE INSURANCE Kim Escherich |@kescherich | @danmark50 IoT Innovation Architect, IBM Watson IoT
- 2. What happens? What iscognitive? What about insurance? What to do?
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- 9. Today’s industry leaders recognize thegap in their digital capabilities Believe they can’t deliver a personalized experience 60% SOURCE cited in notes Say the quality, accuracy or completeness of their data is insufficient 31% Say they are not confident in making spending and strategic decisions 53% expect more competitors from outside their industry 54% of CxOs
- 10. A cognitive businesshas systems that can enhance digital intelligence exponentially. REASON They can reason, grasp underlying concepts, form hypotheses, and infer and extract ideas. UNDERSTAND Cognitive systems understand imagery, language and other unstructured data like humans do. LEARN With each data point, interaction and outcome, they develop and sharpen expertise, so they never stop learning. INTERACT With abilities to see, talk and hear, cognitive systems interact with humans in a natural way.
- 11. An organization thatcreates knowledge from data to expand virtually everyone’s expertise, continually learning and adapting to outthink the needs of the market Digital business + Digital intelligence Cognitive business GROW KNOWLEDGE FROM DATA ENHANCE EXPERTISE LEARN AND ADAPT
- 12. More Accurate Risk Assessment for Underwriting Reduced Frequency andSeverity of Claims Automated FNOL Claims Servicing1 Superior Customer Experience, Satisfaction and Loyalty New Product Offerings 1 First Notice of Loss (FNOL) Top 5 Benefits of IoT to the Insurance Industry What we learn from the physical world will transform several industries, including the Insurance Sector in which IoT will have one of the greatest impacts.
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- 14. What is Changingin the Insurance World? The insurance industry is undergoing a significant transformation. Historically reactive, it is now needs to become proactive … ANAL YT I C S I NFOR MAT I ON SE NSOR S D A TA Source: CenterlineDigital All equates to a MAJOR DISRUPTION in the current insurance business model The Explosion of DataCustomer Engagement Preferences Diminishing Risk Transition in the Workforce
- 15. InsurTech will createnew eco-systems
- 16. The most relevantfeature of IoT is that multiple use cases can be enabled by a shared infrastructure ` Connected industry Connected car Connected living and working Connected cities Connected health In-vehicle voice Roadside assistance Vehicle platform Stolen vehicle recovery Vehicle navigation Vehicle diagnostics Lease, rental & share car management Usage-based insurance In-vehicle entertainment & internet access In-vehicle emergency call system First responder connectivity Telemedicine Clinical Trials Clinical remote monitoring Connected medical environments Land agriculture Fishing Executive industries Homeland security Emergency services Road fleet management Supply chain Public space advertising Manufacturing & processing Warehouse & storage Boundary control Retail goods monitoring & payment Retail & leisure specialist applications Smart grid distribution monitoring Smart metering Building automation Micro- generation Building security Construction site monitoring Commercial appliances White goodsOffice equipment Network infrastructure Network equipment Handset & tests PCs & laptops Other consumer electronics Household information devices Tracking appliances Personal multimedia AV sourcesAV displays Assisted living Worried well personal monitoring Worried well remote monitoring Environmental monitoring Electric vehicle charging Road traffic management Environment public safety Defence Specialist office equipment New energy sources Construction equipment monitoring
- 17. To combat thesechallenges, insurance organizations need a new mechanism to overcome human and current systems’ limitations Human Machine § Human brain can consume and process only a limited amount of information § Human beings are subject to physical and mental fatigue, i.e. are not scalable § Human workers and experts can make mistakes § Traditional technology cannot handle ambiguity § Current paradigm of computing is pre- programmed and rigid; it cannot learn, reason, or relate § Machines do not interact via natural interfaces Insurers need a machine that can learn new problem domains,reason through the hypotheses, resolve ambiguity, evolve towards more accuracy, and interact in natural ways to engage, discover and decide better
- 18. Economic Choices Value Chains Services& Platforms Enabling Infrastructure IT Infrastructure Big Data Integration Security & Resilience Cognitive Computing The Cognitive Insurer © 2015 IBM Corporation Mobile & Social Customer Value Chains Omni-Channel Digital Operations Machine Learning Algorithms Natural Language Processing Cognitive Analytics Digital Network Business Ecosystems An integrated cognitive ecosystem Powering a smarter, more efficient insurer
- 19. We see cognitivecomputing as a way to fundamentally transform how insurance conducts business from end-to-end Direct-to-consumer cognitive virtual agents that serve, guide, & advise on web or mobile Employee-facing applications that augment service across the customer life-cycle Employee-facing applications that enhance insurance operations TRANSFORMED ENGAGEMENT EMPOWERED ADVISORS OPTIMIZED OPERATIONS © 2015 IBM Corporation 19
- 20. Auto Insurance Equity Release Graduation First Job First House Estate Planning Moving MarriageChildren Retirement University Life Insurance Savings Health Insurance Home Insurance Wealth Management Wellness Transforming Digital Customer Engagement Provide richer engagement across the customer lifecycle with a consistent, informed and natural digital interaction Review During and after sale the new member can be coached on coverage questionsand selecting products Learn Provide trusted, consistent expert guidance to members during life changes anytime, anyplace Evaluate During the year insightful alerts keep the member engaged 20© 2015 IBM Corporation
- 21. 21 Use Case DescriptionValue Proposition Level of Integration Required Level of Training Required Self-Service Q&A On-demand access to expert, domain- specific information on web or mobile- based platform Answer simple/procedural questions and decrease call center demand Minimal Moderate Embedded Watson Virtual Agent Engage customers with natural language dialog and industry specific insights within a client-proprietary application Augment existing digital channels with cognitive guidance to increase digital sales conversion Minimal Heavy Integrated Watson Virtual Agent Stand-alone solution that customizes each customer’s experience with personalized recommendations Create a stickier online experience and scale the agent experience Heavy Heavy Cognitive Life Coach Watson Virtual Agent Creating the ultimate experience with personalized assurance and mentoring throughout the customer lifecycle Inculcate a sense of loyalty/assurance and increase customer retention Heavy Heavy Self-Service Explorer Dashboard Discovery and navigation across disparate sources to address challenges with accurate, timely data “findability” Create a more informative online experience and decrease call center demand Moderate Minimal © 2015 IBM Corporation Transforming Engagement with Watson Potential Use Cases to Explore
- 22. Embedded Watson VirtualAgent Assisting self-service channels with cognitive process wizard TRANSFORMED ENGAGEMENT Watson instance set in an existing customer application, allowing for dialog-driven processes that guides user to transaction completion Aid in completion of forms and process- specific, point-in-time questions that customers may have during a self-service interaction 22© 2015 IBM Corporation Potential Data Sources System Integration Internal policies, procedures, best practices, external definitions, industry FAQs Process wizard
- 23. 23 Use Case DescriptionValue Proposition Level of Integration Required Level of Training Required Contact Center Dashboard Empower Agents to better respond to Customer requests and improve call conversion rate Shorter, more efficient call times with less waiting and more helpful answers increasing satisfaction Minimal Moderate Call Log Analyzer Creating a tool that drives conversion via enhanced client insight for Agent Advisors Better understand agent-customer interactions to improve call conversion rate Minimal Moderate Watson for Life & Annuities Wealth Managers Efficiently explore and understand topics, news and trends relevant to the customer needs Surface information that is relevant, urgent, and timely to clients & reduce time spent on review preparation Minimal Heavy Watson Crystal+ for Corporate Insights Watson will scale the expertise of analysts, optimize workflow, and increase the scope of information digested for analysis. Create a stickier online experience and scale the agent experience Heavy Heavy © 2015 IBM Corporation Empowering Advisors with Watson Potential Use Cases to Explore
- 24. Improve the agentproductivity by analyzing extracted and mined call logs to identify patterns, quality issues, similar phrases, topics and trends Identify common customer issues to prepare agents for frequent queries, improving training and overall call center processes © 2015 IBM Corporation 24 EMPOWERED ADVISORS Potential Data Sources System Integration Enterprise content,Transactionand application data,call transcripts, email, social media CRM, transactional systems Watson for Contact Center Support Analyze and discover new insights to enhance the quality assurance of each interaction
- 25. 25 Use Case DescriptionValue Proposition Level of Integration Required Level of Training Required Underwriting Dashboard Extraction, collection, aggregation of submission data, underwriting guidelines from a combination of internal and external data sources. Simplify the processing of submission documents. Medium Minimal Underwriting Advisor Identify, assess and understand how a risk should be priced and evaluated. Optimize underwriting decisions by taking on more complex risk scenarios. High Heavy Underwriting Research Aggregate structured and unstructured, internal and external information to form comprehensive company profiles Improve decision making and opportunities with deeper insights into disparate companies Medium Minimal Claims Dashboard Extraction, collection, aggregation of claims and loss data from a combination of internal and external data sources. Simplify the collection, triage and review of claims cases. Reduce time to perform quality review Medium Minimal Claims Fraud Advise claims management in identifying SIU/fraud and litigation risks Improve risk assessment models by uncovering patterns and associations among existing data sources Low Minimal Regulatory Policy Compliance Explore, search, analyze, and establish correlations between external regulations, internal company policies & procedures and controls Increase visibility into the risk environments across your enterprise Medium Medium © 2015 IBM Corporation Transforming Operations with Watson Potential Use Cases to Explore
- 26. Transform Underwriting Make existingdecisions smarter by incorporating insights from unstructured data 26 Case Underwriter ReviewApplication Completeness Review and Apply Underwriting Guidance Recommend Underwriting Decision © 2015 IBM Corporation OPTIMIZED OPERATIONS Impact future underwriting decisions with continuous learning and training Learn Combine internal, external, structured and unstructured data for deeper insights into individual risks Evaluate Automate the extraction, and processing of submission data Review Summarize & extract information from submission Enrich submissions by combining internal and external data Evaluate products for performance and key metrics Support decision making with insights from precedence Improve decision making with continuous learning Cognitive Underwriting Structured Data Application Documents Historical Data & UW notes Social Data Loss History Inspection Reports Example Customer Data Public Medical Literature Watson Health Data Wikipedia DBPedia Public Financial Data Historical Public Submissions Weather Patterns Example Watson Data
- 27. Watson for ClaimsFraud © 2015 IBM Corporation 27 OPTIMIZED OPERATIONS Automate the search of different data sources and historical data for greater insight into claim losses and insured policy lifecycle changes Improve risk assessment models by uncovering unexpected patterns and associations among existing data sources Decrease fraudulent payouts by discovering new insights from mined data Potential Data Sources System Integration Claim files, claim guidelines, precedent claims reports, SIU notes, internal policies, procedures, best practices,news services Internal workflows, claims mgmt system, internal database(s)
- 28. Source: Understanding customersand risk Your cognitive future in the insurance industry, IBM Institute for Business Value
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- 30. The Watson Journeyconsist of three primary phases CVA Use Case Benefits Case Report Journey Map 1 Deploy & Manage Deploy and Expand to Other Domains 3Configure & Train Core System Training 2 StartHere © 2015 International Business Machines Corporation 30IBM Confidential
- 31. § Assessment ofcurrent business workflows and identification of target processes to disrupt with cognitive solutions § Development of final candidate Use Case(s) § Development of User Scenarios / Personas aligning to Use Case § Development of key benefits hypotheses § Data collection to test hypotheses § Development of Benefits Case § Identification of key Watson initiatives to support the Client’s goals for cognitive enablement § Development of Client’s Journey Map for Cognitive Computing Page | 31 © 2014 International Business Machines Corporation Three key deliverables drive our teams to define Watson’s initial capabilities, business value, and overall cognitive journey Use Cases Cognitive RoadmapBenefits Case © 2015 International Business Machines Corporation 31IBM Confidential
- 32. Finally, a CognitiveRoadmap details the client’s journey with Watson Key tasks / activities: § Outline key initiatives from end user vantage point. § Outline key business milestones supported by incremental business capabilities § Outline the business benefits and metrics effected over the duration of the Transformation period § Deliver a visual representation of key initiatives and dependencies, identification of milestones and benefits improvement over time, and a detailed plan for execution Objective: Outline key initiatives required to supportthe transformation journey from the pointof view of the end user(s). It summarizes the key persona(s),identifies progressive capabilities and highlights sample interactions throughoutthe transformation. © 2015 International Business Machines Corporation 32IBM Confidential
- 33. Kim Escherich escherich@dk.ibm.com +45 28804733 internetofthings.dk | danmark50.dk @kescherich | @danmark50 /escherich /in/escherich kescherich@gmail.com Mere information Se præsentationer og demoer fra World of Watsonher: https://ibmgo.com/wow16 Om Watson: http://www.ibm.com/watson/ WatsonVirtual Agent: https://www.ibm.com/marketplace/cloud/cognitive-customer-engagement/us/en-us Customer Insights for Insurance: https://www.ibm.com/marketplace/cloud/customer-insight-for-insurance/us/en-us WatsonIoT: http://www.ibm.com/internet-of-things/ IBM Instutute for Business Value: http://www-935.ibm.com/services/us/gbs/thoughtleadership/ IIBV Cognitive Future Study: https://goo.gl/yTZ50I IIBV Innovating Insurance Study:https://goo.gl/dCpckR