Future of Insurance USA 2024: Sphere Partners’ Key Learnings and Insights

The Future of Insurance USA 2024 in Chicago was an extraordinary gathering of strategic leaders and tech experts from America’s top insurance carriers. As Sphere Partners’ Senior Client Partner, I had the privilege of attending and representing our company at this prestigious event. Over the course of two days, we engaged in thought-provoking discussions, explored cutting-edge technologies, and gained valuable insights into the future of the insurance industry. Here are some of the key learnings and insights we gathered from this transformative event.

Reimagining Business in the Face of Disruption

One of the most impactful sessions was the keynote by the CEO of Delta Dental, which focused on reimagining business amidst disruption. The discussion centered on the challenges posed by a volatile economy, geopolitical tensions, and the rapid proliferation of AI. The session emphasized the need for insurance companies to diversify their business models, placing the customer at the center of their strategies. By doing so, businesses can stay ahead of evolving expectations and ensure long-term resilience.

A crucial takeaway was the importance of building resilient teams and cultures that can withstand massive disruptions. As the insurance landscape becomes increasingly complex, fostering a culture of adaptability and continuous learning is essential. This approach not only helps companies navigate current challenges but also prepares them for future uncertainties.

Addressing the Underinsurance Problem

Kevin Kerridge, CEO of Hiscox USA, delivered an enlightening keynote on the far-reaching problem of underinsurance. He highlighted the extensive protection gap across the US and the hurdles businesses face in accessing adequate insurance coverage. One of the key points was the role of industry language in creating barriers to comprehensive coverage. Complex jargon and convoluted processes often deter customers from fully understanding their policies and the benefits they offer.

Emerging technologies present a solution to this problem. By simplifying insurance processes and making them more accessible, companies can reach a wider customer base and ensure that more businesses and individuals are adequately covered. Faster collaboration across technology, marketing, underwriting, and customer touchpoints is essential to developing customer-centric products that address the protection gap effectively.

Accelerating Ahead in the Gen AI Race

A panel discussion on the impact of Generative AI (Gen AI) on the insurance industry was particularly insightful. Gen AI is fundamentally recalibrating various aspects of insurance, from underwriting to claims processing. The discussion separated myths from reality, providing a clear understanding of what AI tools can and cannot do for the industry.

One of the key blockers to successful AI implementation is the lack of a meaningful strategy. Companies need to develop comprehensive AI strategies that ensure successful and scalable deployments. By addressing the risks and challenges associated with AI, insurers can leverage these tools to enhance decision-making processes, improve operational efficiency, and ultimately provide better services to their customers.

Gen AI Use Cases and Applications

Adam Fischer, Chief Product and Innovation Officer at Clearcover, shared practical use cases of Gen AI within their organization. One notable example was their claims summarizer, which not only automates the summarization of claims but also suggests next steps and drafts emails for agents. This internal tool significantly improves efficiency and accuracy in claims processing.

Another interesting application was their Gen AI agent for post-accident claims ingestion. This agent can collect over 17 answers to questions from the insured, streamlining the claims process and ensuring that all necessary information is gathered promptly. These use cases demonstrate the potential of Gen AI to revolutionize internal processes and enhance customer interactions.

Similarly, Sphere has developed Gen AI solutions that help businesses enhance their operational efficiency and customer interactions, demonstrating our commitment to driving technological advancement in the industry.

From Insurtech 2.0 to 3.0: What Comes Next?

A fireside chat featuring Rick McCathron, President & CEO of Hippo, and Kyle Nakatsuji, CEO and Co-founder of Clearcover, provided valuable insights into the evolution of Insurtech. They discussed the tough decisions made in 2023, including strategic shifts, talent management strategies, and technology investments. The discussion highlighted the importance of being agile and responsive to market changes.

Key lessons learned included the need for continuous innovation and the ability to pivot quickly in response to new challenges. The speakers shared their predictions for the future of Insurtech, emphasizing the need for strategic partnerships and investments in cutting-edge technologies to stay ahead of the curve.

Augmenting the Underwriter

Another notable panel focused on augmenting the underwriter with technology and AI. The discussion emphasized the potential of AI to supercharge underwriting without compromising on quality and accuracy. By increasing decision velocity, insurers can improve their reputation and reduce the likelihood of clients dropping out of the purchase process.

AI tools also have the potential to unlock employees’ full potential by reducing workloads and improving job satisfaction. Underwriters can focus on more complex and strategic tasks, while AI handles routine and repetitive processes. This shift not only enhances efficiency but also fosters a more engaging and fulfilling work environment. Here you can read how it works in more detail.

The Role of Data, Technology, and AI in Reshaping Traditional Insurance Models

Adil Ilyas, Head of P&C Insurance at Genpact, led a discussion on how data, technology, and AI are reshaping traditional insurance models. The session explored the transformative potential of strategic partnerships and innovative solutions in the insurance industry. Practical advice was provided on solving the top challenges of implementing Gen AI, with a focus on enhancing customer experience and operational efficiency.

One of the key takeaways was the importance of a customer-centric approach in leveraging AI and data technologies. By focusing on customer needs and preferences, insurers can develop more personalized and effective solutions. This approach not only improves customer satisfaction but also drives business growth and competitiveness.

Sphere’s Role and Future Prospects

At Sphere, we are committed to leveraging cutting-edge technologies to provide innovative solutions for the insurance sector. Our capabilities span a wide array of services designed to modernize the industry, including Generative AI as a Service, Data Modernization and Engineering, Legacy Software Modernization, and Mobile Application Development.

Our longstanding collaborations with major insurers such as AON, AXA, Zurich Insurance, Lemonade Insurance, and Allstate have solidified our reputation for delivering transformative solutions. With a remarkable 97% client retention rate over 19 years and more than 1600 successful projects, we continue to lead the way in insurance innovation.

Conclusion

The Future of Insurance USA 2024 provided invaluable insights into the current and future landscape of the insurance industry. From the challenges of underinsurance to the transformative potential of Gen AI, the event highlighted the critical role of technology in driving industry advancements. At Sphere, we are excited to continue these conversations and explore new ways to support our clients in navigating the evolving insurance landscape.

We look forward to demonstrating our innovative solutions and helping insurers tackle complex challenges. Connect with us to learn more about how our services can propel your business forward and redefine the future of insurance.