5. Research Results and Analysis
5.2. Research Findings
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5.2. Research Findings
According to the interview participants’ responses, the research findings are shown as follows:
1. AI or robots:
Only one company has already prepared to use RPA for its business processes but still needs to take some time to introduce to its employees how to use the RPA. One of the other two companies might plan to use RPA, but one company still does not intend to use AI or robots to deal with tasks.
If an insurance company in the non-life insurance industry could use AI or robots to deal with daily routines, participants answered that it might help an underwriting department to shorten procedures of issuing insurance policies, provide quotations more quickly, improve the efficiency of dealing with underwriting and settling claims, and collect data or information needed more efficiently.
Most participants said that using RPA in the insurance company might shorten
underwriting procedures, quotations, and policy issuance. In addition, RPA can help to collect data or information needed to make reports or Excel spreadsheets.
Most participants answered that RPA might not replace humans totally to deal with underwriting in the non-life insurance industry. First, different insurance products have various points that need to consider when evaluating the risks of quotations. Second, insurers cannot use the same model to deal with numerous tasks, and Taiwan’s market is not mature enough so that insurers need to change accordingly with the external
environment like compliance. Third, employees work at the casualty insurance
department might leave the job frequently. It is thus challenging to cultivate talents, and
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it might take more time to train new employees to learn to use new technologies. Last, casualty insurance products usually are a brand new product to employees or
underwriters in an insurance company. Those employees need to spend time
understanding the product and learn detailed knowledge of the new product.
Participants responded that insurance companies use AI or RPA should focus on data protection, business interruption by crackers or computer viruses, and insurers need to understand how to build and maintain software and hardware of the RPA and its back-office database. In addition, using RPA might increase operating costs, so an analysis of using RPA regarding its costs and what benefits the RPA can provide must be done before introducing RPA to deal with daily routines.
Participants mentioned that using AI or RPA might have limitations because it might require manual intervention when AI cannot make decisions or when RPA does not have rules to follow. Also, it mentioned that AI needs sufficient data to learn and improve its effectiveness, but using AI might not be allowed by current regulations. Therefore, the current rules need to amend to allow insurers to use AI and robots.
2. Systems:
Participants answered that operating systems currently use do not have integrated functions to support for issuing insurance policies, providing quotations, and dealing with other tasks at one system. In addition, an ideal operating system needs to have the elasticity to adjust by user’s demands, and the system can help to deal with claims settlement and support to handle different kinds of reinsurance tasks. Besides, it
mentioned that operating systems should set up the same rules and conditions for users to
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make reports and spreadsheets. Moreover, it is suggested that an insurance company could consider recruiting new IT employees with expertise and experience to maintain and utilize operating systems.
Participants responded that introducing a new operating system or a new core system to
current companies they work for is necessary. Also, an insurer needs to evaluate the cost and benefits of upgrading current systems versus using a new core system before
considering whether to introduce the new systems.
3. Internal business processes and delegation of authority policy:
It showed that each insurance company has its internal business processes and delegation of authority policy. They all give some authority to their branches to deal with
underwriting. Still, some insurance products like product liability insurance for exporting products to the United States and Canada or cyber insurance, quotations need to arrange facultative reinsurance or its insured value over the limits of authority needs to require approval from headquarters.
Based on respondents’ suggestions, it is recommended that insurance companies they currently work for could consider providing higher limits of authority or give authority to their branches to underwrite more insurance products in order to increase the
efficiency of offering quotations.
It is recommended that we can use the number of issuing policies, the number of providing quotations, time for a typing insurance policy, and achievement rate of target profits to measure the extent of improvement of an underwriting department’s
operational efficiency in an insurance company after an insurance company amended its
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internal business process or delegation of authority policy.
The participants’ answers showed that some of them agree with providing authority to insurance sales representatives to deal with quotations. However, some insurance
companies only allow insurance sales representatives to type conditions of offer requests into the system to receive quotes from the system or help underwriters to type terms and
conditions of offer requests into the system. The current regulations do not allow insurance sales representatives to provide quotations for customers without receiving underwriters’ approval. The insurance company allows its insurance sales representatives to deal with underwriting or provide quotes to customers that might break the rules and create problems by conflicts of interest from insurance sales representatives.
4. Employee training:
The employee training for insurance sales representatives and underwriters in the
companies of the respondents they currently work for include regular employee training, online e-learning courses, lectures, workshops, or external training. New employees or junior staff also provides mentorship to help them learn and understand the procedures of tasks more quickly. Besides, it will provide education manual and work instructions to insurance sales representatives to understand coverage, exclusions, and risks of different insurance products and steps of soliciting business and policy issuance.
According to respondents’ answers, it is suggested that insurance companies could consider providing training regarding communication skills, business development skills, official document writing skills, regulations like the "Government Procurement Act," and knowledge and experience of underwriting new insurance products.
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It is recommended that an insurance company could consider adopting mentorship or apprenticeship for the junior staff or new employees and provide a series of
comprehensive courses with real examples and practical experience sharing workshops to help new employees to learn better from employee training.
5. Distribution channels and marketing strategies:
It showed that one of the research companies’ distribution channels are banks and insurance sales representatives from its affiliated life insurance company of the same financial holding company.
It showed that marketing strategies insurers might adopt are co-marketing with sister companies or cross-promotion.
It is suggested that an insurance company shall focus on product design, launch more insurance products to the market, and provide insurance products with more competitive premium rates to improve the effectiveness of marketing strategies. Also, carriers shall conduct a detailed assessment of losses ratios to set up appropriate marketing strategies to promote insurance products. Besides, marketing staff should understand target insurance products’ coverage and exclusions to run successful campaigns. Furthermore, it is recommended that a parent company adopt proper methods to make all sister companies cooperate and maximize the positive results of co-marketing.
It showed that all participants’ companies preparing insurance products’ documents for submission for review could be divided into two parts, which are pricing actuarial memorandum and the other materials. In general, underwriters shall prepare for insurance product documents, and actuaries are responsible for preparing pricing
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actuarial memorandum and related documents.
Participants replied that their companies promote insurance products via specific insurance plans, insurance agents, insurance brokers, direct mail, and combined insurance plans. Besides, they also sell their products through banks, car dealers, and online insurance quotes.
6. Other factors:
Respondents answered that if an insurer improves the efficiency of a casualty insurance department in the non-life insurance industry, they shall focus on improving systems, using AI technology, printing, and binding insurance policies automatically by machine.
Also, they should provide appropriate training to increase the expertise and decision-making skills and dedication of every underwriter and employee. Moreover, insurance companies could consider providing specific insurance plans for target customers and reducing to make unnecessary reports.
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