Digital Thought Leadership in Insurance "Revolutionizing Insurance Through the Power of Data and AI"

Industry Momentum

The insurance industry continues to evolve, adapting to the revolutionary impact that the synergy of data and AI has brought to its ecosystem. Insurers are now strategically positioning products, identifying target customers, and effectively leveraging data for market penetration, all because of an evolving landscape of AI implementation.

It is important to recognize that the insurance industry has benefited from technological advances and digital transformation on a global scale. The convergence of big data and AI is driving a transformative wave in insurance distribution. Insurers that quickly seize this opportunity can enhance their business value through cost-effective strategies, securing substantial market share in the process.

NTT DATA recognizes that this is the right time for insurers to continue their transformation efforts. In developing the new white paper, we have leveraged the industry knowledge of our experts and their ability to deliver solutions tailored to the current needs of the industry.

In the words of Bruno Abril, Head of Insurance at NTT DATA Europe & LATAM, "The insurance sector has had to adapt to a changing environment, where technology has played a key role. And among all these technologies, data and artificial intelligence have become fundamental to being more competitive. The transformation will continue, and companies will have to adapt to the needs of the market and customers by creating solutions, some of which are set out in the white paper we are presenting, where we have gathered the knowledge of the industry from our experts".

New Routes Towards the Evolution of the Industry
NTT DATA Insights

AI has emerged as a critical technology in the insurance industry, enabling the adoption of new business models and fostering innovation. To stay competitive in the modern landscape, insurers must prioritize the utilization of data and cloud systems.

Although adoption rates may differ, there is substantial evidence pointing to the rapid integration of AI in both the life insurance and property and casualty (P&C) sectors. For insurers yet to invest in AI, it is crucial to identify diverse use cases that can facilitate AI implementation. Moreover, exploring AI solutions customized to address specific business challenges, such as fraud detection, is more beneficial than developing in-house solutions.

Insurers that are committed to becoming data-centric organizations should facilitate streamlining operations, introducing pioneering products, improving user and customer experiences, and expanding revenues and profitability.

NTT DATA can support insurers in the following industry challenges:

• Insurance companies need to handle the demands of data-intensive tasks and high coding requirements, Efficient data management is key, particularly when utilizing data for text analysis and automating the claims process.
• In the insurance industry, effective communication with clients is crucial to collecting essential information and managing data efficiently. Furthermore, the ability to make transactional queries in an agile and efficient manner is paramount. This often involves the compilation of information from multiple channels to establish a comprehensive data ecosystem that supports seamless operations and streamlined customer experiences.

Conclusions

The need to digitise today's personalised advice and secure future digital solutions is widely recognized in the insurance industry. However, trust is of great importance in the industry, especially among customers. And while the gradual pace of digital transformation in the industry can be attributed to its reliance on trust, there will be tasks with human capabilities that cannot be replaced by AI. The need for human oversight will continue to grow along with the increasing sophistication of AI.

Download the white paper here.

About NTT DATA

NTT DATA – a part of NTT Group – is a trusted global innovator of IT and business services headquartered in Tokyo. We help clients transform through consulting, industry solutions, business process services, IT modernization and managed services. NTT DATA enables clients, as well as society, to move confidently into the digital future. We are committed to our clients long-term success and combine global reach with local client attention to serve them in over 50 countries. Visit us at nttdata.com.