AI set to transform insurance industry, but integration challenges remain

Vantage point: Insights from cutting-edge research

Insurance executives believe that artificial intelligence (AI) will significantly transform their industry in the next three years, with insurers investing in AI to empower agents, brokers and employees to enhance the customer experience with automated personalised services, faster claims handling and individual risk-based underwriting processes, according to Accenture's Technology Vision for Insurance 2017.

At the same time, however, the report found that insurers face challenges integrating AI into their existing technology, citing issues such as data quality, privacy and infrastructure compatibility. Titled “Technology for People”, the report is based on the insights of a technology advisory board, interviews with industry technologists and a survey of more than 550 insurance executives across 31 countries. According to the report, 75 per cent of insurance executives believe AI will either significantly alter or completely transform the overall insurance industry in the next three years.

Investment in building a brand has impact on a firm’s ability to raise funds

Investment in building a company’s brand is not just about generating sales but also has a measurable impact on the business’s ability to raise funds, says a new study. Researchers found that improving brand perception by just 10 per cent increased the financial resources available to the average business in their study by nearly $US400 million over subsequent years.

The study appears in the latest issue of the International Journal of Research in Marketing. “A strong brand sends a positive signal to funders and investors,” says Professor Marc Fischer of UTS Business School, who conducted the study with Assistant Professor Alexander Himmer of Kuehne Logistics University, Germany. By contributing to revenue and profit growth, it also reduces the need to take on debt. The worlds of marketing and finance officers intersect more closely than they might have thought, Professor Fischer says. The study is the first to show how marketing and financial metrics dynamically interact with each other in what the researchers have dubbed the “financial brand value chain”.

Push for digital payments opens growth avenue for India smartphone biz

As the Indian cellular market goes through consolidation and aggressive 4G roll-out, demand for smartphones will continue to grow. With smartphone penetration maturing in many developed markets, continued growth in the third largest smartphone market makes India an attractive option for manufacturers. Smartphones in India are expected to account for 62 per cent of all mobile phone sales in 2018. “With the slowdown in sales in major markets, including the US, China and mature Western Europe, India represents the largest opportunity because it is the second-largest mobile phone market after China,” said Anshul Gupta, research director at Gartner.

Besides, demonetisation caused an increased push from the Centre for digital currency, with becoming more open to using digital payment methods. The rise of digital currency is bringing a use case for smartphones, which in turn is set to trigger demand. This allows service providers to launch mobile wallet solution or even vendors to launch their exclusive mobile payment solutions.