Market Overview

US Insurers Could Boost Profits by $20 Billion Through Intelligent Solutions, According to Accenture Report

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More than half of insurers currently use intelligent solutions in one or
more business process

By embedding intelligent solutions such as artificial intelligence (AI),
machine learning and analytics into every business process, insurers in
the U.S. could increase annual profitability by as much as US$20
billion, according to new research by Accenture (NYSE:ACN).

The report, called "Reimagining
Insurance Processes with Intelligent Solutions
," is based on an
analysis of the potential profit impact of intelligent solutions on U.S.
tier 1 insurers, as well as a survey of 185 insurance process
professionals. The research found that insurers that use intelligent
solutions to reinvent the customer experience and drive human-machine
collaboration are achieving returns in excess of 10 times their
investment and could increase industry-wide profitability by between
US$10.4 billion and US$20.8 billion.

"As insurers face heightened customer expectations and cost pressures,
now is the time for them to move from experimenting with AI in the
laboratory to deploying it at scale across several business processes,"
said Michael Costonis, who leads Accenture's Insurance practice globally.

Encouragingly, the report notes that more than half (53 percent) of
insurers surveyed are already using intelligent solutions in one or more
business process, and 46 percent are investing in or piloting them to
streamline selected business processes and customer experiences. Among
the other reasons insurers are integrating intelligent solutions are to
reinvent business processes (24 percent), harness data and analytics to
drive new insights (31 percent), and rethink human/machine collaboration
to drive speed, quality and consistency of outcomes (34 percent).

The report reveals that the leaders in applying intelligent solutions
are doing so to help them reimagine entire business processes, worker
engagement and customer experiences, rather than just make small
improvements to existing business processes.

In addition, insurers that treat intelligent solutions as a series of
isolated technology investments will not get the best return on their
investments. The leaders recognize that these solutions represent a new
platform capability, similar to existing core systems such as policy and
claims.

"Intelligent solutions could enable whole new levels of personalization
and convenience for the customer and transform a host of insurance
business processes, including managing claims data, generating sales
leads, extracting information about key risk factors, and spotting
potential fraud," said Costonis.

The full report can be found here: https://www.accenture.com/_acnmedia/Accenture/Conversion-Assets/Secure/pdf-no-index-1/Accenture-Insurance-Intelligent-Solutions.pdf

Methodology

Accenture analyzed the potential profit impact of intelligent solutions
segmented across primary value drivers (product penetration, customer
retention, fraud, sales force effectiveness, portfolio management, lower
claims costs, lower customer acquisition costs, lower customer service
expense) on tier-1 U.S. insurers.

In addition, Accenture Research surveyed process professionals at 1,075
large global companies (one per company) with revenues ranging from
US$500 million to more than US$25 billion, including 185 insurance
respondents. Of those, 38 were CXOs, 75 were other executives, 59 were
managers, and 13 were analysts or engineers.

About Accenture

Accenture is a leading global professional services company, providing a
broad range of services and solutions in strategy, consulting, digital,
technology and operations. Combining unmatched experience and
specialized skills across more than 40 industries and all business
functions – underpinned by the world's largest delivery network –
Accenture works at the intersection of business and technology to help
clients improve their performance and create sustainable value for their
stakeholders. With 449,000 people serving clients in more than 120
countries, Accenture drives innovation to improve the way the world
works and lives. Visit us at www.accenture.com.

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