Virtual conference
Insurance in 2030 – A future powered by technology and artificial intelligence
Technology, data and artificial intelligence (AI) are transforming the insurance industry. Customer demand for fast, if not real-time services that go beyond pure insurance coverage is on the rise. In response, insurers must move closer to their customers and offer personalised services. The effective use of technology and AI is vital to making this happen.
The second Geneva Association New Technologies & Data Conference, held virtually on 5 May 2022 and co-organised with AIA Group, explored how technological change can drive new scalable business models, particularly in health insurance. While these new models can offer customers an advantage, customer trust is essential when leveraging technology and data.
Summary
Opening Address: Lee Yuan-Siong
Lee Yuan Siong, Group Chief Executive and President, AIA Group
Lee Yuan Siong, Group Chief Executive and President of the AIA Group, set the scene by emphasising that shared outcomes are at the heart of insurance. The main goal is to deliver great value for all industry stakeholders and create a win-win situation for customers, society and the economy.
Technology and AI are influencing how we work and shop. Consumers are always connected, and the demand for personalised and relevant experiences anytime, anywhere has only accelerated with COVID-19.
These technologies are revolutionising insurance pricing, distribution and claims management with enhanced business models aimed at meeting new demands. Today’s static assessment of risk at the inception of the insurance coverage period overlooks the fact that many risks are determined by policyholder choices made over a lifetime of coverage. Technology and AI are transforming this process into a dynamic assessment, which provides relevant information for customers and insurers.
The role of insurance is to make significant contributions to communities. Technology enables the potential expansion of risk pooling, enhanced risk coverage and inclusion for the financial stability of society and economies.
Keynote Speech: Transforming Healthcare Delivery and Health Insurance Through Technology
Jonathan Broomberg, Chief Executive Officer, Amplify Health
Jonathan Broomberg, Chief Executive Officer, Amplify Health, identified the current trends in the healthcare industry as well as examples of shared value in health insurance. Challenges include cost inflation, demographic trends, a dramatic increase in the incidence of chronic disease, the growing imbalance of skill demand and a workforce shortage, which has evolved over decades but been exposed by the pandemic. This makes the role of technology urgent.
In response, HealthTech platforms need to be built up to deliver healthcare that is not only more aligned with the needs of consumers and healthcare systems, but also converts the concept of shared value to health insurance.
Risk in health is behavioural, not static. It includes the behaviour of customers and policymakers as well as that of healthcare providers. As risk can be modified by changing behaviour, technology can be used as an enabler.
Data from the Vitality Health programme show that a change in both customer and provider behaviour brings significant improvement to the claims ratio. Shared value is about bringing value back to those who created it (i.e. policyholders, consumers and providers) through rewards and an increase in the quality of health services at lower costs. Examples can be created along the whole value chain.
Physical activity on the part of consumers is a gateway. Data shows that people who are more physically active have a more healthful diet and better mental health. Even the death rate from COVID-19 among physically active people with chronic disease is significantly lower than among people who are not physically active. In short, physical activity is lifesaving.
Technology and data, when used to change the behaviour of all stakeholders based on shared value, can force a real reduction in the cost of healthcare services.
Panel 1: How Do We Extend Health Insurance to More People Using Digitalisation?
(Top) Bernhard Kotanko, Senior Partner, Mckinsey & Company (moderator); Sirma Boshnakova, Member of the Board of Management, Allianz SE. (Bottom) Axel Baur, Deputy Chief Executive Officer, Amplify Health; Patrick Conway, CEO, Optum Care Solutions, UnitedHealth.
As the healthcare industry is in a tremendous development and innovation stage, it can play an essential role in realising a healthier population and more stable financing of the healthcare system. Private health insurance can expand its function in society by providing access to healthcare and health. This panel discussed how digitalisation can help achieve this.
Insurance kicks into action when an incident occurs but does not do enough to prevent it from happening. Private insurance can be vital by providing access to healthcare. In effect, the old business model needs to evolve to change health, not just healthcare. Technology can enable this shift.
There are four components to increasing access to healthcare and reducing the need for it:
- Strong cooperation between private and public health insurance, and delivery: The concept of creating shared value should be put in place in a way that builds trust between public and private insurers.
- Change in health behaviour: It has become more fashionable to take care of our health. Access to healthcare must be shared and scaled amongst broader groups of people.
- Health technology to reduce the overall cost of delivery: Supporting the infrastructure beyond offline services can relieve the broader healthcare ecosystem from the financial burden.
- Smooth, seamless and ‘borderless’ experience with healthcare delivery: Health must incorporate physical and mental health, integrate care models at home and consider individual needs. Technology with a heart and a human touch will be needed to deliver it.
Panel 2: Using Data Responsibly for Innovation – How can insurers strike the right balance?
(Top) Biswa Misra, Group Chief Technology Officer, AIA Group (moderator); Girish Nayak, Chief Customer Service, Operations and Technology, ICICI Lombard; Meryem Duygun, AVIVA Chair in Risk and Insurance & Professor, Nottingham University. (Bottom) Adrien Lebegue, General Manager & Head of Strategy, ZhongAn Group; Chaouki Boutharouite, Head of AI Governance and Thought Leadership, AXA.
Innovation and personalised services and experiences must be evidence-based and rely on data. In the second panel, the balance between the shift to a digital economy and responsible use of data was explored, in particular the requirements around implementing shared value with consumers while using personal data.
The booming digital economy has transformed the way people live, consume, travel and work. As a result, insurers need a different way of engaging with consumers and their lifestyles, developing products and delivering services with the use of data.
The end-users have the right to control their data and do with it what they wish. Regulations such as the GDPR (the EU’s General Data Protection Regulation) ensure the fair and transparent collection of data and responsible data management. The responsible use of data is all about creating shared value and giving value back to the consumer. Insurers need to have the right data and AI frameworks and define policy guidelines at different levels. People working with data must understand what responsible use means and not just follow procedures.
Finally, collaboration between the industry and academia is essential. Academic research studies those who can least afford insurance and identifies the less obvious factors that would drive inclusive insurance. Partnerships between researchers and insurers can lead to the design of more innovative insurance products and delivery, and in turn benefit all stakeholders and broader society.
