Insurance Business, Australia: Cognizant’s Global Head of Insurance Says Automation and Artificial Intelligence will Empower ― not Replace ― Brokers

While much has been made of investments in automation and AI (artificial intelligence) over recent years, brokers still hold a vital role in the insurance industry, says Muthu Kumaran, adding that while some in the industry may be worried about the future of their jobs, their fear is unfounded.

“There’s a natural fear within the insurance sector, as with many industries, that technology will push people out of jobs,” Kumaran says. “The fact is, brokers will be empowered by technology, rather than replaced by it.”

Kumaran says that automation and similar technologies represent a “huge opportunity” for the industry as a supplement to human work. As knowledge-based work, broking will always require human intervention, Kumaran continues, and relationships will remain key. Meanwhile, automation will provide benefits to the broking community that will come to fruition over the coming years.

“Empowered by bots and other automated technology, knowledge is suddenly able to be used in more interesting and productive ways,” Kumaran notes.

With many claims services looking toward automation to improve efficiency and customer experience, Kumaran says that the emergence of robo-advisors will be used to create a more personalized offering for clients.

“This has the benefit of freeing brokers of tedious work, in order to concentrate on relationship-building,” Kumaran said. “Brokers are seeing these moves as revenue additive, enabling them to focus more on the complex aspects of providing advice.”

Click here to read more.