Digitally-savvy customers expect insurers to provide an advanced customer experience during their interactions. They expect insurers to recognize them when they call, proactively engage with them after gathering relevant information from data such as social media and call center logs, and provide them with proactive advice and guidance. To meet these changing customer expectations, Life and non-life or Property and Casualty (P&C) insurers are looking for intelligent automated chat solutions with self-service capability at their call centers, with which the customers can chat in natural language just as they chat with a CSR and obtain the required support quickly in real time. IBM Watson delivers this next wave of customer engagement to insurers through cognitive computing capability.
At the core of what makes Watson different are three powerful technologies: natural language, hypothesis generation, and evidence-based learning. Watson is about bringing these capabilities together in a way that has never been done before, resulting in a fundamental change in the way insurers can look at quickly solving customer’s problems in a real- time chat with Watson.
Benefits for insurers
IBM helps insurance companies to become more client-centric, balance costs with agility, and improve their risk management and industry differentiation. IBM clients benefit from decades of deep industry experience in delivering business and IT strategies that optimize enterprise systems, processes and people to drive profitable growth. With IBM Watson, IBM can help companies create systems that understand, reason, learn, and naturally interact with humans. Watson is built for—and built on—industry and professional domains, offering a trusted approach that combines private, industry, and public data and ensure that clients’ information remains theirs. IBM infuses industry-focused cognitive solutions across their portfolio and makes it available on the IBM Cloud.
Advantages for insurers
Fukoku Mutual Life Insurance believes it will increase productivity by 30% and see a return on its investment in less than two years with the help of Watson: it deployed a cognitive computing solution that uses natural language processing capabilities to analyze inbound customer calls. RIMAC, an insurance company in South America, automates the claims review process for approximately 90 percent of claims. This automation decreases the time required for expert review by more than 90 percent and reduces fraud costs. Among the early adopters are Swiss Re, who made their unstructured data more accessible using IBM Watson Explorer, VKB increased the effectiveness of claims resolution with cognitive solutions from IBM, a large US P&C insurer built a cognitive virtual agent that can answer a wide variety of consumer questions and differentiate the user experience based on key context variables.
One billion Watson users by the end of 2017
IBM believes there could be as many as one billion Watson users by the end of 2017. That includes 200 million consumers who come across the technology deployed by IBM clients in areas such as shopping, travel planning, buying insurance and accessing banking and government services. Cognitive computing is no new news for insurers. In 2016, 69% of insurance executives surveyed by the IBM Institute for Business Value: Rethinking insurance, how cognitive computing enhances engagement and efficiency, described their organizations as prepared to adopt cognitive computing.
Why we selected IBM for DIA Amsterdam
Watson’s ability to answer complex questions posed in natural language with speed, accuracy and confidence is helping insurers redefine the future of insurance with next generation customer experience. The Cognitive Claims prototype enable insurers to sustain profitability through more efficient operations within their most expensive area of Claims Management through an innovative cognitive platform to digitally handle this process across multiple lines of business.
Mr. Lee-Han Tjioe, European Insurance Industry Leader IBM, showcased a live demo of the Watson Innovations Cognitive Claims prototype at DIA Amsterdam. It uses cognitive computing to consistently and efficiently address the claimant’s demands and drive improved customer satisfaction. Efficient claims enable effective pricing and happier customers.
Who are IBM Watson?
After its triumph on the television quiz show Jeopardy in 2011, IBM has advanced Watson from a game playing innovation into a commercial technology. Now delivered from the cloud and able to power new consumer and enterprise apps, Watson is 24 times faster, smarter with a 2,400 percent improvement in performance, and 90 percent smaller. IBM has shrunk Watson from the size of a master bedroom to three stacked pizza boxes.
Named after IBM founder Thomas J. Watson, IBM Watson was developed in IBM’s Research labs. Using natural language processing and analytics, Watson processes information akin to how people think, representing a major shift in an organization’s ability to quickly analyze, understand and respond to big data. IBM is working to make it easier for companies to apply AI techniques, and to tap into the expertise required to do so. For example, IBM has bought up medical image databases and is using deep learning to try to help doctors spot diseases more rapidly
In March 2017 Salesforce announced a global strategic partnership to deliver joint solutions designed to leverage artificial intelligence and enable companies to make smarter decisions, faster than ever before. With the partnership, IBM Watson and Salesforce Einstein, AI that powers the world’s #1 CRM, will seamlessly connect to enable an entirely new level of intelligent customer engagement across sales, service, marketing, commerce and more. http://www-935.ibm.com/industries/be-en/insurance/solutions/end-end-digitization.html
Watson is working alongside people in 45 countries and 20 industries to help businesses work faster and smarter.
Lee-Han Tjioe, European Insurance Industry Leader IBM
Presenter: Lee-Han Tijoe
Presenter: Arjan Bruggink