1.
AI in insurance
services
Benefits, risks, opportunities
Horváth Gergely, CFO, Deputy CEO at Generali Biztosító
Trinh Anh Tuan, Corvinus FinTech Center

2.
Artificial intelligence in service - short overview
MECHANICAL ANALYTICAL INTUITIVE EMPATHETIC
Ming-Hui Huang and Roland T. Rust, Artificial Intelligence in
Service, Journal of Service Research, 2018, Vol. 21(2), 155-172.

3.
Problem statement – Insurance industry features
 Old and rigid legacy system
 High cost ratio (30%+)
 Labor intensivity
 Repetitive tasks in administration
 Slow T2M (time to market)
 Deep analysis of structured data
 Rarely used unstructured data
o market info, social media, blog,
client behavior, internal and external
processes
New, flexible
technologies

4.
In which areas AI can help? - Competitive advanteges
Job replacement at low level task
Implementation of connectivity based
initiatives
o processes, products can use IoT data
Utilization of unstructured data by risk
management, pricing
Deeper understanding of clients’ needs
and behavior

5.
Impacts on insurance industry
• Rreduction of non-motivative processes
• Enhanced data reconcilliations
• Enabling more time to develop and analyse
• Coverage personalization for clients
• Increased penetration
• Reduced personnel and
processing cost
Fast reaction to
market changes and
needs (T2M)
Quality assurance on
repetitive
Upgrading employees’
knowledge
Lower cost ratio
Machine-human co-
working strategies
BALANCED “MACHINE
HUMAN CO-WORKING”
OPERATIONAL EFFICIENCY
REVENUE EXPANSION
ON-DEMAND INSURANCE

6.
Highly impacted business lines
MOTOR LIFE, HEALTH AGRO

7.
Expected business model change in insurance processes
MARKETING
PRODUCT DEVELOPMENT
ANALYSIS, REPORTING
RISK MANAGEMENT
INVESTMENT
PRICING
SALES
UNDERWRITING
CALL CENTER
CLAIM SETTLEMENT
PROCESS
MARKET SCREENING

8.
Profit maximalization
SERVICE QUALITY PRICESUSTAINABILITY PROFIT
MAXIMALIZATION

9.
Claim settlement
Increased engagement of clients
through high quality service
DECREASED FRAUDS
INCREASED RELIABILITY,
SPEED, ACCURATENESS AND
FAIRNESS
WILL LEAD TO TRUST
BETWEEN CUSTOMER AND
INSURANCE COMPANY

10.
B
A
Risk
Timet
PRICING
FORECASTING
t+x
Pricing/Risk selection by AI
RiskB
t
RiskA
t
<
Risk B
t+n
Risk A
t+n
> ΣΣ
x
n=1
x
n=1

11.
Roadmap to implementation
AI STRATEGY
FORMULATION
• PEST and SWOT
analysis
IDENTIFICATION OF
APPLIED
TECHNOLOGIES,
EXISTING PROCESSES
TO BE INCORPORATED
PEOPLE ENABLEMENT
• set of skills needed
• impact analysis on
training process
• change management
GOVERNANCE
• roles and
responsibilities
OPERATING MODEL
• AI integration into
o existing model
o people management processes

12.
Thank you for your attention!