The insurance industry is recognizing the potential of AI and automation in driving cost savings, revenue growth, and improved customer experience. However, it is important to strike a balance between leveraging AI capabilities and maintaining the human touch. Insurers should not solely view AI as a cost-saving tool but also consider the impact on talent recruitment and the need for skilled professionals to operate AI systems effectively. By adopting responsible and ethical AI practices, insurers can navigate the evolving landscape of the insurance industry and deliver better outcomes for their customers.
AI can also play a crucial role in accelerating the migration of closed-block business to new platforms in the insurance industry. Closed-block systems, which are legacy systems that hold policies that are no longer sold, can be costly to maintain. Migrating these systems to new platforms can significantly reduce operating expenses. However, the complexity and age of legacy systems and life insurance policies present significant challenges in the migration process.
To address these challenges, AI technologies can streamline the migration process by analyzing code and data, reverse-engineering legacy code, extracting processing logic and product rules, and creating efficient code in modern programming languages. AI-enabled approaches have achieved significant automation and cost reduction in closed-block migration initiatives. Insurers are advised to conduct a thorough assessment of their current systems, understand the potential benefits of migration, determine the appropriate migration approach, involve multidisciplinary input, and plan for change management. By leveraging AI in closed-block migration, insurers can reduce time and costs while ensuring a smooth transition to new platforms [278539ec].