social share alt icon
Thought Leadership
Revolutionizing Insurance with AI and Automation: Mphasis Approach
September 16, 2024
Revolutionizing Insurance with AI and Automation: Mphasis Approach
Vijay Mahendrakar
Head Of Insurance Business Solution, Europe, Mphasis

Revolutionizing Insurance with AI and Automation: Mphasis Approach

The insurance industry, perpetually evolving, is undergoing a profound transformation fuelled by technological innovation. As customer expectations rise, regulatory landscapes shift, and operational efficiency becomes paramount, Artificial Intelligence (AI) and automation stand out as pivotal drivers. The global AI in insurance market is poised to surge from USD 11.33 billion in 2024 to USD 49.3 billion by 2032, reflecting the industry's growing reliance on these technologies. Mphasis, a renowned leader in IT solutions, is at the forefront of this revolution, leveraging cutting-edge technology and deep industry expertise to redefine the future of insurance.

Transforming insurance with AI and automation

The insurance sector has long been a data-intensive field, relying on vast amounts of information to drive decision-making. However, traditional methods of managing this data are increasingly proving cumbersome and inefficient. Enter AI—a catalyst for next-generation analytics and automation. By harnessing AI, insurers can sift through enormous datasets with unprecedented speed and accuracy, uncovering insights previously hidden in the noise.

Mphasis leverages its engineering expertise to enhance various facets of insurance operations. From underwriting to claims management, AI algorithms and machine learning models streamline processes and elevate decision-making quality. Predictive analytics, a key component of AI, allows insurers to assess risk with greater precision, delivering hyper personalized experiences and optimizing pricing strategies.

Implementing predictive claims management

A leading global insurer implemented an AI-driven predictive claims management system to reduce claim processing times and improve accuracy. By using machine learning algorithms to analyze historical claims data, the system predicted the likelihood of claims being fraudulent, identified potential delays, and prioritized high-risk claims. As a result, the insurer achieved a 40 percent reduction in claim processing time, cut fraud-related losses by 30 percent, and significantly improved overall customer satisfaction due to faster and more accurate claims resolutions.

Automating underwriting for life insurance

A major life insurance provider integrated an AI-based underwriting solution that automates the risk assessment process. The solution uses natural language processing (NLP) to analyze medical records, lifestyle data, and other relevant documents. The AI models evaluate the risk profile of applicants more accurately and quickly than traditional methods. The implementation led to a 60 percent reduction in underwriting time, increased policy issuance by 25 percent, and provided a more consistent and unbiased risk assessment, enhancing the customer experience.

Detecting fraud with AI

An insurance company specializing in auto insurance deployed an AI-powered fraud detection system that analyzes patterns in claims data to identify suspicious activities. By integrating AI with its existing claims processing system, the insurer flagged potentially fraudulent claims for further investigation. The approach resulted in a 45 percent reduction in fraudulent payouts, saving the company millions annually while also streamlining the claims process for genuine claimants.

Enhancing customer experience through Conversational AI

In the competitive insurance sector, delivering exceptional customer experience is essential. Mphasis addressed this by deploying a Conversational AI solution powered by Kore.ai for a leading health insurer. During the high-demand open enrolment period, the 'My Policy' virtual assistant managed 450,000 calls, achieving a 50 percent containment rate and reducing call handling time by 20 percent. Additionally, it boosted website engagement by 25 percent. The seamless interaction not only alleviated delays and frustrations but also demonstrated the transformative power of AI in enhancing customer service.

Driving efficiency with Digital Workers

Ensuring compliance in the insurance industry, especially in sanction screening, can be challenging and error-prone with traditional methods. Mphasis tackled this by deploying a Digital Worker for Sanction Screening, powered by WorkFusion. The AI-driven solution automated transaction reviews, cutting false positives by 70 percent and enhancing both efficiency and accuracy. By reducing manual efforts, it allowed compliance teams to focus on genuine risks, thereby improving regulatory adherence and streamlining operations. The advancement enabled better allocation of resources across the organization, ensuring more effective management of compliance responsibilities.

Unlocking customer insights with HyperGraf™

Understanding customer behaviour is pivotal for business growth. Mphasis' HyperGraf™ excels in providing actionable insights by integrating diverse data sources, including social media and transactional records. For instance, an insurer leveraging HyperGraf™ created detailed customer profiles, which enhanced their ability to identify cross-sell and up-sell opportunities. The approach not only reduced acquisition costs but also improved customer service by aligning offerings with specific preferences. As a result, the insurer strengthened customer relationships, increased wallet share, and enhanced overall brand value.

Navigating challenges in AI adoption

Despite the promising benefits of AI and automation, the journey towards full-scale implementation is not without challenges. Insurers often face resistance to change, particularly when adopting new technologies that may disrupt established workflows. Additionally, integrating AI systems into existing IT infrastructures can be complex and costly, requiring significant upfront investment and technical expertise.

Data privacy and security concerns also pose significant hurdles. With AI systems processing vast amounts of sensitive customer information, ensuring compliance with stringent data protection regulations is critical. Furthermore, the lack of standardization in AI models and the need for continuous training and fine-tuning of these systems can slow down the adoption process.

Mphasis understands these challenges and approaches AI implementation with a strategic, phased methodology that ensures smooth integration while overcoming potential roadblocks.

Executing the AI implementation strategy in three phases

The AI implementation journey unfolds in three pivotal phases: Exploration, Deployment, and Optimization. During Exploration, Mphasis partners with insurers to identify key challenges and opportunities for AI integration. This phase includes assessing current processes and data readiness to develop a customized roadmap that aligns with strategic objectives. In the Deployment phase, Mphasis integrates AI solutions, ensuring they are tailored to existing systems and performance standards, while also providing necessary training and support. Finally, the Optimization phase focuses on refining and scaling AI solutions across the organization, continually enhancing their effectiveness. The structured approach ensures not only smooth integration but also maximizes the long-term value and impact of AI investments.

Advancing the future of insurance with AI: Mphasis' vision

As the insurance industry continues to embrace digital transformation, the role of AI and automation will only grow in significance. Mphasis is not just keeping pace with these changes but is actively shaping the industry’s future. Through its Mphasis.ai business unit, the company is exploring new frontiers in AI, including Generative AI, Industry-Specific Model Development, and Large Language Model Fine-tuning.

These innovations are set to unlock new possibilities for insurers, enabling them to offer more hyper personalized and efficient services to their clients. By harnessing cutting-edge AI technologies, insurers can enhance operational efficiencies, mitigate risks, and provide superior customer experiences. Mphasis' commitment to advancing AI solutions ensures that its clients are well-positioned to navigate the complexities of the modern insurance landscape and seize emerging opportunities.

As we look to the future, the continuous evolution of AI and automation will redefine what is possible in insurance. Mphasis stands at the forefront of this transformation, dedicated to delivering innovative solutions that drive progress and excellence in the industry. Through collaboration and forward-thinking technology, Mphasis is paving the way for a smarter, more dynamic future in insurance.

Comments
RELATED ARTICLES