M-Files: Escalating Global Risk Profiles & Structured Data

The insurance industry must embrace structured data and automation to address risk and react to market shocks

The insurance industry acts as a financial safety net for individuals, companies or institutions impacted by an increasingly complex range of circumstances, including natural disasters, accidents, economic fluctuations, regulatory changes, and geopolitical instability.

However, as instability increases, it becomes more difficult for insurers to manage risk and forecast, process and assess claims.

We’ve witnessed a host of occurrences rock global markets, such as wildfires raging across Europe, two international conflicts with worldwide ramifications, rampant inflation and 32% of UK businesses reporting attempted cyber-attacks.

According to Yohan Lobo, Industry Solutions Manager, Financial Services at M-Files, the burden of work grows for insurance firms in line with market shocks, so industry personnel must ensure their data is structured and automated wherever possible to increase their capacity to deal with unexpected events. Established companies within a particular sector need to organise their data systematically and automate processes whenever feasible. By doing so, they enhance their ability to effectively handle unforeseen or unpredictable events.

Yohan Lobo, Industry Solutions Manager, Financial Services at M-Files

Yohan says: “The volume and impact of risks both businesses and individuals are experiencing globally show no signs of abating. The volatility of the current economic environment is impacting day-to-day operations, as well as wider strategic challenges in the insurance industry.

“Dynamic interest rates and high inflation mean that the work of underwriters and loss adjusters is more complex because of more frequent asset valuations and increasing claims costs. In addition, recent low interest rates and market turbulence have led to inconsistent investment returns.

“To adapt to a heightened threat landscape, insurers must consider how their information is organised, and whether this allows them to quickly react to market changes. Adopting AI solutions is the simplest way to automate processes and increase both efficiency and adaptability, and firms that already manage their data in a structured way are best placed to implement this technology.

“There are a range of ways insurance firms can leverage AI, from document creation to workflow automation to intuitive search functions. Prioritising the integration of this next wave of technical solutions will increase spare capacity within firms, while allowing them to react instantly and automatically to fluctuating market conditions.

“Legacy insurance firms, in particular, are always looking at how they can improve their financial and operational performance, now and in the future. Technological adoption and development will support these goals by increasing productivity in the short term and improving risk management in the future. Ultimately, insurance firms must be willing to invest in technology, but also to invest in themselves, getting rid of outdated systems or software and spending time organising the data and processes they manage.”

Insurance companies must grasp that the world is changing, and to accommodate this, the industry must evolve too. This transformation will be delivered through technological growth, and firms that prepare themselves to widen their tech stacks and achieve automation by properly structuring the data at their disposal are more likely to build competitive advantage over rivals. 


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