How Hiscox is combining automation and AI to tackle insurance challenges

The insurance industry is facing significant challenges, highlighted by a $26.9 billion net underwriting loss for United States (U.S.) non-life insurers in 2022, the largest since 2011. Increasing costs and consumer pressures, marked by a surge in pandemic-induced construction costs and escalating insurance premiums impacting young adults, pose significant challenges.

Issues such as climate change, cybercrime, and outdated technologies push insurers to rethink their strategies. They need transformative solutions to stay competitive in a fast-paced market. In response, many insurers are turning to automation and AI to improve efficiency, enhance risk assessment, and deliver more personalized customer experiences.

This shift signals a pivotal move towards more proactive and preventative management strategies.

At the UiPath AI Summit 2024, Guillermo Batista, Operations and Process Manager at Hiscox, provided an enlightening exploration into this new reality. Batista outlined how the global specialty insurer is proactively adopting automation and AI, breaking traditional boundaries while envisioning future interactions with these advanced technologies.

Venturing into AI: from basic automation to cutting-edge innovation

Hiscox's transformative journey began with the implementation of basic automation for simple tasks within its operations. As rising operational costs necessitated further innovation, the company expanded its automation strategies through a pivotal partnership with UiPath. This collaboration enabled Hiscox to move beyond automating routine accounting tasks to leveraging AI to significantly accelerate work processes. The result was notable cost savings, enhanced efficiency, and an improved client experience.

The insurer used AI to address industry problems, particularly in the areas of direct bill commissions and underwriting data entry. This marked a significant milestone in their automation journey.

AI accomplishments

Hiscox's key achievement thus far is leveraging AI to interpret distinct templates from various direct bill commission carriers and automating the intricate underwriting data entry process. The advancements resulted in significant time and cost savings, enhancing customer experience.

Moreover, the insurer's automation journey furthered to manage large broker information sets and expedite merger and acquisition processes.

AI-powered success with Communications Mining

A standout aspect of Batista’s presentation at the summit was the emphasis on UiPath Communications Mining. Hiscox Europe has been using UiPath Communications Mining for over a year, triaging hundreds of thousands of emails per year from brokers.

The AI-powered tool looks at an email, determines the type of request (e.g., policy cancellation, request for a change, etc.), and extracts relevant data (such as policy number).

Then automation allocates tasks based on predetermined rules incorporating factors like policy details and broker information.

Overcoming adoption hurdles

Embarking on the journey toward change, Hiscox encountered some challenges in adopting AI and automation. Batista shared that these obstacles primarily involved the complexities of transitioning from traditional triage rules to new methods and securing commitment from operational teams.

After addressing the issues, Hiscox looks forward to expanding the use of AI in various areas. These areas include document interpretation, risk assessment, the quotation process, and claims management. By eliminating manual tasks and streamlining processes, the organization aims to allocate more time for employees to focus on providing higher-quality services and improving customer experience. The goal is to utilize AI's potential to boost efficiency and revolutionize the way Hiscox operates.

Envisioning a streamlined future

As the UiPath AI Summit 2024 insurance session concluded, participants left with new insights about the transformative impact of AI-driven automation on the insurance industry.

Industry leaders like Hiscox see a future ripe with potential as they continue to leverage automation to realize even more value from AI. Where insurance operations become more streamlined and efficient.

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