With a career as a Consulting Actuary behind him, Kopczyk is perfectly placed to identify the latest AI innovations insurers can leverage, having experience at Aviva, Royal London, and Hannover Re before founding SaaS platform provider Quantee.
In what ways can AI help insurers accelerate their growth?
DK: When used effectively, AI is certainly able to help insurers accelerate their growth and it's important to note that it must to used effectively. AI is such broad technology with many exciting opportunities and so it can be easy to get distracted from the main goal or objective and end up taking up time and resources developing a project which would not help growth. So prioritisation and effective planning are key.
AI algorithms can analyse the extensive datasets that insurers now have access to, including historical claims data, market trends, and other external factors, to improve risk assessment accuracy. Insurers can then leverage AI to develop more sophisticated pricing models, identify hidden patterns, and optimise their pricing strategies. This enables insurers to offer competitive premiums while maintaining profitability, attracting more customers, and growing their market share.
Insurers can then utilise their data sets to target the right customer segments with personalised marketing campaigns. AI technology can then help enhance customer experiences through chatbots, virtual assistants, and personalised recommendations, improving customer satisfaction and increasing retention rates. So when this technology is focused effectively, it can become a central part of any insurer's growth plans.
How does the role of an actuary change with the introduction of AI and tech?
DK: The role of an insurance pricing actuary is certainly evolving with the advancements in technology and innovation, and now more than ever at such a rapid pace.
Actuaries now have access to vast amounts of data and more sophisticated tools for data analysis. They can leverage advanced analytics techniques and predictive modelling from platforms like Quantee to gain deeper insights into risk factors, pricing trends, and customer behaviour.
This enables them to develop more accurate pricing models and make data-driven decisions. Actuaries are increasingly employing machine learning and AI techniques to enhance their pricing models. These technologies can automatically analyse vast amounts of data, identify patterns, and generate pricing recommendations. Actuaries can also use AI to automate routine tasks, allowing them to focus on more complex analyses and strategic decision-making.
Insurtech startups like Quantee are leveraging technology to disrupt the insurance industry. Actuaries can collaborate with these companies to explore innovative pricing approaches and develop new insurance products. For example, usage-based insurance, peer-to-peer insurance, and on-demand insurance are emerging concepts that require actuarial expertise to develop appropriate pricing structures. And so we are now seeing the rise of the 'Act-Tech' role which combines this new technology with the experience and knowledge of an actuary.
How can insurers utilise AI and data science to better compete?
DK: There are significant opportunities for insurers if they can utilise AI and data science, and this technology can be applied right across the organisation. We have seen that with the help of AI algorithms and predictive modelling, insurers can develop more tailored pricing structures and personalised insurance products. By analysing customer data, such as demographics, behaviour patterns, and historical claims data, insurers can offer individualised coverage and pricing options.
This level of customisation enhances customer satisfaction and attracts new market segments. We have seen insurers be able to extract actionable insights from complex and large datasets which in the past has always been an extremely cumbersome task. By analysing customer data, market trends, and industry benchmarks, insurers can make data-driven decisions regarding product development, pricing strategies, market expansion, and customer acquisition. This helps insurers stay competitive in a rapidly evolving digital landscape.
There are then opportunities with efficient claims management, chatbots and language processing, fraud detection, and many other areas of an insurer's operation that this technology can add value to. With AI and data science, insurers are empowered to leverage data effectively, improve risk assessment, optimise their pricing, and enhance customer experiences. By embracing these technologies, insurers can thrive in the digital age and gain a competitive advantage in their marketplace.