The Insurance Sector in Malaysia is Being Transformed by Intelligent Claims Automation.
In Malaysia, the new era of innovation is mediated by strong economic growth, expanding middle class incomes, and increasing insurance penetration. Artificial intelligence (AI) is driving this transformation, with the goal of bringing new and smart technologies to society.
The figure was released by the country’s banking and insurance regulator, Bank Negara, which says that life insurance penetration reached 56% in 2018. Despite continued regulatory ambiguity on restrictions on foreign ownership of the sector, foreign insurers have made the market very attractive for them.
While motor insurance continues to be the most popular type of insurance, covering 45.6% of the market, fire insurance accounts for 19.2%, and marine, aviation, and transit (MAT) insurance at 8.2 per cent, Takaful has surpassed conventional insurance in the Islamic peninsular.
The government’s efforts to reach out to the general public with cheap consumer protection and better use of technology as a distraction support the growth of the takaful industry in Malaysia, the world’s second largest Islamic market after Saudi Arabia.
In Malaysia’s big shift, there are already significant options. According to AI research submitted by Microsoft and IDC-ASEAN Research Group, by 2021, Artificial Intelligence will almost double the rate of innovation (1.8x) and increase employee productivity by 60% in Malaysia.
What is insurance automation?
Auto insurance underwriting is done quickly and uses sophisticated algorithms and software. Manual underwriting is the opposite. Proper insurance underwriting takes longer because the process depends on someone to assess the client’s financial history.
Human underwriters require a large amount of documentation, including bank statements, tax records, proof of employment, medical history, and demographic profiles. Once the customer obtains and provides this information to the underwriter, the underwriter must assess the possible risks associated with providing insurance to the customer.
While manual underwriting can be an attractive option for clients with unique financial situations — such as new to building credit or having previous financial problems — but for providers, this requires a lot of time and resources.
The year 2021 will be the System & benefits of Intelligent Claims Automation
The ability to fully use data and improve business processes with strong algorithms, thus providing room for data-driven choices, is essential for an AI-driven insurance company. With artificial intelligence (AI), the claims process may be improved by using chatbots to provide assistance and claim status updates, and Machine Learning (ML) can learn huge volume patterns to express viewpoints and identify fraud, among other applications. Claims automation may be accomplished for a portion of the whole of the claims settlement procedure.
Many insurance companies are also thinking about how working remotely can help them become more diverse, especially in technical positions, which have traditionally been difficult for businesses to thrive. Integrating sensors into the value chain also yields higher benefits through predictive modelling and data analysis, as demonstrated by Katsana, a telematics firm that allows insurance companies to offer usage -based insurance based on driver performance data.
The views of insurance firms and the younger generation on a future that seems to include more AI are evolving directly with their counterparts in Asia. While the general insurance industry has experienced almost volatile growth in recent years, AI can help insurers reduce overhead and variable costs, allowing them to provide cheaper coverage, especially to underserved groups.
In particular, insurance companies require permission to use data streams entirely from home, car, and workplace, as well as sensors on business assets. In the future, mobile applications and other smart technologies may use data from these sensors to provide automatic alerts to initiate claims or notify users and company owners about needed repairs or maintenance. Commercial insurance companies, in particular, have great potential in risk prevention. To be successful, they must be able to educate customers about this capability and sell it about its advantages.
The fact that finance and insurance are often leaders in the remote work environment demonstrates the critical need for insurance firms to accelerate their digital capabilities development. According to research, the sector’s need for technical skills will grow by 55% between now and 2030, while need for physical and manual skills would decline by 14%. Claims, in particular, may anticipate that 50% of activities associated with that position will be automated. Given the increase in digital pandemics in general, this tendency is likely to continue.
Naturally, the movement toward a more remote work environment is not without difficulties. While simple automated claims may be handled by adapters sitting at their kitchen tables or even artificial smart boats, complicated claims requiring live damage investigation and careful evaluation will almost certainly need on-site processing.