Exploring the #partnership between #insurers and reinsurers in the #ai & #digital #innovation  world
Tameen Guru
[{'start': '23.014', 'end': '23.511', 'text': '[Music]'}, {'start': '23.511', 'end': '30.080', 'text': '[Music] good morning ladies and gentlemen\xa0\nWelcome to our first session for today We'}, {'start': '30.080', 'end': '37.520', 'text': 'will explore in this session the critical changes\xa0\nand opportunities presented by a rapidly evolving'}, {'start': '37.520', 'end': '46.640', 'text': 'digital and AIdriven landscape We will discuss\xa0\nhow organizations can accelerate their digital'}, {'start': '46.640', 'end': '54.160', 'text': 'transformation efforts as well as the operational\xa0\nand underwriting risks associated with fintech'}, {'start': '54.160', 'end': '61.360', 'text': 'innovations Additionally we will examine the\xa0\ntechnological changes shaping new insurance'}, {'start': '61.360', 'end': '69.360', 'text': 'business models and delve into the pressing issues\xa0\nof cyber risks and the associated underwriting'}, {'start': '69.360', 'end': '75.840', 'text': 'activities Join us as we navigate these vital\xa0\ntopics that are redefining the future of the'}, {'start': '75.840', 'end': '82.080', 'text': 'insurance industry Moderating this session is\xa0\nMr Haitham Taher deputy chairman and managing'}, {'start': '82.080', 'end': '91.760', 'text': 'director Metife Egypt Joining him as speakers\xa0\nthis morning Mr Muhammad Ansari CEO Munich Re,'}, {'start': '91.760', 'end': '100.560', 'text': "Mena region . moving very diversified panel\xa0\nI'm very I'm proud of such panel So without"}, {'start': '100.560', 'end': '109.280', 'text': "the insurance we cannot do anything because\xa0\nwe will have a big exposure and I'll seize the"}, {'start': '109.280', 'end': '115.760', 'text': 'opportunity that we have the CEO of Munich of\xa0\ncourse very well known no need to introduce to'}, {'start': '115.760', 'end': '124.560', 'text': "any insurer Munich very well So I'm sorry I know\xa0\nthat it will be a very high level question but"}, {'start': '124.560', 'end': '131.040', 'text': "I'm sure that you will you will give us everything\xa0\nAI different products different systems different"}, {'start': '131.040', 'end': '138.080', 'text': "risks different assessment So from a reinsurance\xa0\nperspective what's the collaboration between"}, {'start': '138.080', 'end': '146.320', 'text': 'insurer and the reinsurer in such an AI world ?\xa0\nAsalam alaikum Good morning everyone good to be'}, {'start': '146.320', 'end': '154.000', 'text': 'here Glad to be here and thanks for getting for\xa0\nthe online arrange such a great event and not'}, {'start': '154.000', 'end': '158.640', 'text': 'only allowing people to have the collaboration but\xa0\nhaving a meeting on the sidelines. Coming to the'}, {'start': '158.640', 'end': '165.360', 'text': 'question that you mentioned I think if you look at\xa0\nif you take a step back if you look at the global'}, {'start': '165.360', 'end': '174.240', 'text': "digital transformation you're looking at is\xa0\nanticipated to be 3.8 trillion by 2030 That's"}, {'start': '174.240', 'end': '181.680', 'text': 'staggering numbers However insurance as a business\xa0\nand industry has always lacked behind the other'}, {'start': '181.680', 'end': '188.560', 'text': 'sector We had other sectors which have moved much\xa0\nfaster on the adoption rate Insurance was bit late'}, {'start': '188.560', 'end': '194.320', 'text': 'Even in the financial sector the banking was\xa0\nmuch faster than the insurance Having said that'}, {'start': '194.320', 'end': '202.960', 'text': 'as we heard from my fellow panelists there is a\xa0\ngreater appreciation of what technology and AI'}, {'start': '202.960', 'end': '210.160', 'text': 'brings to the table and that you can see is\xa0\nbeing implemented into the overall business'}, {'start': '210.160', 'end': '215.680', 'text': 'plans in a strategic view of the companies\xa0\nboth at insurance and the reinsurance level'}, {'start': '215.680', 'end': '221.760', 'text': "I think if you want to see the impact of AI and\xa0\ndigital transformation you'll have to look at"}, {'start': '221.760', 'end': '227.680', 'text': 'it from three different categories So there\xa0\nare technologies that can disrupt the overall'}, {'start': '227.680', 'end': '234.320', 'text': "insurance industry There's technologies which can\xa0\nimpact the business model that is currently in"}, {'start': '234.320', 'end': '241.200', 'text': 'place in the insurance sector Thirdly technology\xa0\nsolutions which enhance the value chain and the'}, {'start': '241.200', 'end': '249.040', 'text': 'internal and external processes that are around\xa0\ninsurance business And if you see the entire value'}, {'start': '249.040', 'end': '255.840', 'text': 'chain I think normally most of the development\xa0\nthat has happened between these three categories'}, {'start': '255.840', 'end': '262.480', 'text': 'have been the last category despite the fact that\xa0\nour few examples like lemonade which tried to'}, {'start': '262.480', 'end': '268.960', 'text': 'disrupt the insurance business model and I think\xa0\nquite successful in that level but I think most'}, {'start': '268.960', 'end': '275.360', 'text': 'of the investments and projects have been started\xa0\nin the last category which is enhancing the value'}, {'start': '275.360', 'end': '282.560', 'text': 'chain and the processes and if you look at from\xa0\nend to end you start with the risk assessment'}, {'start': '282.560', 'end': '289.840', 'text': 'as well as underwriting and the implementation of\xa0\ntechnology and AI enables both the insurer as well'}, {'start': '289.840', 'end': '297.120', 'text': 'as the reinsurer to have much quicker responses\xa0\nand more accurate responses In addition to that'}, {'start': '297.120', 'end': '301.760', 'text': 'if you move on to the next stage of the customer\xa0\nvalue chain which is the portfolio management'}, {'start': '301.760', 'end': '307.200', 'text': 'that also becomes faster with the big data and\xa0\ndeep data analysis that companies are able to'}, {'start': '307.200', 'end': '315.760', 'text': 'do Now then you have this fraud prevention and\xa0\nwith the large models that the AI can cater to'}, {'start': '315.760', 'end': '322.960', 'text': "you're able to have live detection of fraud and\xa0\nprevention of it as well Lastly I think we are"}, {'start': '322.960', 'end': '330.800', 'text': "in a business where we don't produce tangible\xa0\nproducts Our promise is what matters and the"}, {'start': '330.800', 'end': '339.200', 'text': 'promise is to pay claims And this is where I think\xa0\nyou technology and AI we are able to have real'}, {'start': '339.200', 'end': '346.400', 'text': 'fast turnar around time on claims payment and that\xa0\nis what adds a lot of value to the end customer as'}, {'start': '346.400', 'end': '350.720', 'text': 'well as the primary level the companies are\xa0\nable to take the customers at production at'}, {'start': '350.720', 'end': '355.600', 'text': 'a higher level If you look at the adoption I\xa0\nthink from adoption perspective even different'}, {'start': '355.600', 'end': '360.720', 'text': 'geographies have different different take up\xa0\nrates For instance Chinese companies have an'}, {'start': '360.720', 'end': '367.920', 'text': "adoption rate of around 58% of technology energy\xa0\nand AI while in the US it's still at 25% Middle"}, {'start': '367.920', 'end': '375.760', 'text': 'East is growing fast driven more by the countries\xa0\nlike UAE Saudi Arabia But the hockey stick growth'}, {'start': '375.760', 'end': '382.160', 'text': 'which you can see in the Middle Eastern market\xa0\nIf you look at the overall I think benefits of'}, {'start': '382.160', 'end': '390.480', 'text': 'AI you can see I think my fellow Dani had referred\xa0\nto them I think you the main aim really is to make'}, {'start': '390.480', 'end': '397.920', 'text': 'the customer experience better improve efficiency\xa0\nand eventually lead into financial gains from that'}, {'start': '397.920', 'end': '405.280', 'text': 'You have the cost reduction that happens You have\xa0\nbetter enhance value from the data and credibility'}, {'start': '405.280', 'end': '414.000', 'text': 'of the data which brings to digitalization what is\xa0\nalso important is how fast the communication can'}, {'start': '414.000', 'end': '420.320', 'text': 'be between the end client the primary companies\xa0\nand the reinsurer Reinsurers have always had the'}, {'start': '420.320', 'end': '428.160', 'text': 'luxury of having a lot of data Now that data using\xa0\ntechnology is being able to translate into tools'}, {'start': '428.160', 'end': '435.520', 'text': "and services that are passed on to the primary and\xa0\nto the end customer I'll give you an example of a"}, {'start': '435.520', 'end': '442.480', 'text': 'nextgen AI solution under solution that Munich\xa0\nhas launched in the Asia Pacific market which'}, {'start': '442.480', 'end': '447.600', 'text': "is yielding amazing results over there We have\xa0\nthat's more on the life and death side Similarly"}, {'start': '447.600', 'end': '454.480', 'text': 'on the non-life side we have a real solution which\xa0\nis again an AI based solution which allows primary'}, {'start': '454.480', 'end': '462.000', 'text': 'companies to have access to a real time AI enabled\xa0\nunderwriting solution So there are enough use'}, {'start': '462.000', 'end': '470.080', 'text': 'cases that can be cited there I think as as you\xa0\nmentioned there are challenges as well and I think'}, {'start': '470.080', 'end': '476.400', 'text': 'we people what we see in the media is always talk\xa0\nabout redundancies that AI and technology will'}, {'start': '476.400', 'end': '484.320', 'text': "bring but I think the it's difficult to replace\xa0\nthe cognitive element that humans bring There"}, {'start': '484.320', 'end': '490.640', 'text': 'is talk about the AGI which is the artificial\xa0\nintelligence but I think which is also referred'}, {'start': '490.640', 'end': '497.120', 'text': 'to as a strong AI but I think that will take some\xa0\ntime before it actually is in operation and has'}, {'start': '497.120', 'end': '503.280', 'text': 'use cases but in the meantime we have challenges\xa0\nof you we have to have economic value that has'}, {'start': '503.280', 'end': '508.880', 'text': 'the cost and benefit the time and resources that\xa0\nare required we need to also see the governance'}, {'start': '508.880', 'end': '514.080', 'text': "element I think the governance element we've also\xa0\nheard in the the compliance presentation mentioned"}, {'start': '514.080', 'end': '521.280', 'text': "that there's 9.6 6 billion fine but in the recent\xa0\nEU AI actu if you see you can have a fine at the"}, {'start': '521.280', 'end': '528.240', 'text': 'entity level up to 35 billion of 7% of the global\xa0\nturnover these are huge numbers for any any'}, {'start': '528.240', 'end': '535.360', 'text': 'organization so while there is ample value to be\xa0\ngenerated there are a number of initiatives both'}, {'start': '535.360', 'end': '541.360', 'text': 'at the reinsurance level which are being permitted\xa0\ndown to the level of primary and eventually at the'}, {'start': '546.240', 'end': '546.880', 'text': 'customer [Applause]'}, {'start': '546.880', 'end': '555.120', 'text': 'thank you so much I think the thing that just\xa0\na question because the auto underwriting thing'}, {'start': '555.120', 'end': '562.000', 'text': 'personally in our company of course it was\xa0\nvery very good investment but this is machine'}, {'start': '562.000', 'end': '568.560', 'text': "learning or AI the one in the system So I\xa0\nthink that's a very good question because"}, {'start': '569.760', 'end': '575.680', 'text': "I've seen and I think in a lot of conferences\xa0\nand discussions and and panels I've seen a lot"}, {'start': '575.680', 'end': '582.800', 'text': "of simple digitalization being quoted as AI and\xa0\nthere's a there's a clear distinction between"}, {'start': '582.800', 'end': '589.120', 'text': "AI and digitalization I think the automation\xa0\nof the underwriting processes that's I think"}, {'start': '589.120', 'end': '595.760', 'text': "a lot of the companies have now achieved that in\xa0\nglobally actually there's been a standardization"}, {'start': '595.760', 'end': '604.880', 'text': 'around the KPIs and the data that is required the\xa0\nAI enabled underwriting that is a step further and'}, {'start': '604.880', 'end': '612.400', 'text': "I think that basically brings together a luckily I\xa0\nthink if you've been in business for more than 140"}, {'start': '612.400', 'end': '618.320', 'text': "years you have a lot of data and that's I think\xa0\nwe are able to bring to the table that you use"}, {'start': '618.320', 'end': '626.000', 'text': 'the past data for machine learning and then using\xa0\nalgorithms are able to forecast and the outcome'}, {'start': '626.000', 'end': '630.720', 'text': 'both at the underwriting level and at the claim\xa0\nlevel and this forecasting is quite accurate So'}, {'start': '630.720', 'end': '637.280', 'text': 'what we are seeing is our AI tools at the moment\xa0\nwhen we look at the Asia Pacific solutions they'}, {'start': '637.280', 'end': '644.720', 'text': "are in the high 90s the outcome So it's not that\xa0\nwe are experiencing a big challenge on how the"}, {'start': '644.720', 'end': '651.680', 'text': 'AI outcomes are Using AI the outcomes are quite\xa0\nsimilar to what would be without AI. The important'}, {'start': '651.680', 'end': '659.003', 'text': 'the value is the time and the accuracy and and\xa0\nit less involved human in that process [Music]'}]