Intelligent Issue 31 | Page 39



Fortunately , technology such as Root ’ s is reducing a lot of that complexity . Advanced technologies can highlight anomalies , limit permissions , access third-party data sources – and therefore the risk of internal fraud – and allow insurers to make sure all checks and balances have been addressed in processing claims .
For instance , an actuarial scientist is far more likely to program the algorithm that determines your risk profile than to do the calculation themselves . Artificial Intelligence ( AI ) and Machine Learning , meanwhile , easily filter out fraudulent claims . Your insurer is also likely to have an old mainframe server that houses massive databases , with the basic business rules of insurance hardcoded into the system .
Louw Hopley , Founder and CEO of Root to work together effectively . You need underwriters to evaluate the risk and approve consumers ’ applications for insurance cover ; actuarial scientists to determine the risk profiles of individual and group customers ( and what premium they should pay ); claims adjusters to determine what should be paid out and insurance agents to sell and manage policies . That ’ s without getting into other functions such as reinsurers ( who insure insurance companies ), customer service and marketing .
Plus , all of this infrastructure has to speak to banking systems to gather premiums and pay out claims .
These roles are all more complex than has been outlined here , but it should be clear that it takes a lot for an insurer just to come into existence , never mind build the app that you use to insure your new fridge or claim when someone dings your car . Importantly , insurers also have to guarantee that every person and technology in that chain complies with the laws and regulations governing the industry .
The best InsurTech platforms combine those functions and technologies seamlessly .
How does this partnership demonstrate the ease with which branded entities can enter the insurance market ?
The process took roughly two months from spec to go-live , which is unheard of in insurance circles . Usually , just getting the different databases to ‘ talk ’ to one another can take a year . Our API-based operating system resolves that problem from the get-go .
What advice would you offer key decision-makers looking to expand into the insurance sector ?
First , think about what your customers want – this is the main difficulty when designing new products .
Once you ’ ve got that resolved , assemble your ecosystem of value chain partners , including underwriters , admin partners , etc . This is where a modern API-based insurance operating system can be extremely helpful , enabling each of these partners to seamlessly interact to deliver value to the final customer . �

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