Insurance Roles

As a mechanism for pooling of risk and moderating the impact of an unexpected event on an individual or party, insurance is an integral part of modern life. For individuals, starting with life insurance, its reach extends to healthcare, travel, property, vehicles, among the major forms of cover, and perhaps many other smaller ones. It is so pervasive that we don’t even need to define or explain the term.

The industry has evolved rapidly, in keeping with trends around the world and as the nation has integrated into the larger world. Some of us may be in an age bracket whose parents never had health insurance coverage. Today, such people are not very common.

What has also evolved is the set of key positions in an insurance company that propel it forward, including some new roles that may not have existed a generation back, and modified roles and responsibilities for the ones that did.

Underwriters

Tasked with determining the quantum of risk inherent in a transaction, leading to the decision of whether it would be worthwhile for the company to take that risk, and at what price, the primary role of an underwriter has not changed much. What has changed for the underwriter is the process and tools through which they ply their trade.

A generation back, an underwriter might have ploughed through reams of numbers in a bid to extract valuable information from them. They may also have resorted to a “gut feel” based justification in case the numbers did not tell a story.

Today, with data analytics and generative AI at their beck and call, and computing power that can crunch terabytes of data in seconds, there is no room for “gut feel.” Underwriters can entrust the standard cases and decisions to the machines at their disposal, focusing on the exceptions and one-offs. They are also able to collaborate with product managers to design better products.

Actuaries

Another lynchpin of the insurance industry, an actuary’s job has revolved around the assessment of the financial impact of future events that may or may not happen. According to  the Institute of Actuaries in India, “Actuaries…use data science and data analytics techniques and build financial models to project future risks and uncertainties based on the assumptions on historical trends and future projections.” This, naturally, makes them suitable for contribution to areas such as pricing and product design. In the industry in general, actuaries also contribute to the valuation of Pensions, Annuities, Employee Benefits, Social Security, Health Benefits, Government Schemes and Investments.

As is the case with underwriters, the primary role of an actuary has not changed. What has changed is how they do it.

In the nineties, actuaries would have only recently learnt to use statistical models and spreadsheets, as opposed to paper-based number-crunching a decade or two earlier. It was a backroom function where they slogged away and reached conclusions which they explained to whoever needed an explanation.

Today, an actuary has become a part of the powerful, knowledgeable front-end business team that is dealing with customers and creating the most suitable products for them. This has been made possible by the array of computing tools at their disposal, reaching conclusions almost in real-time.

Claims Adjusters (Evaluators)

At some stage, when the event insured against transpires, or is claimed to have transpired, some customers make claims against the policies they have purchased, expecting compensation. It is the job of a claim adjuster, also referred to as an evaluator, to establish the veracity of the claim and determine the amount that needs to be paid. It needs to be done in a fair and transparent manner. While their job is not to deny any fair claims, they also don’t want to make unwarranted payments, pushing up the cost for the company.

This requirement has not changed much. If anything, there is greater pressure on them to separate the grain from the husk and keep at bay the greater sophistication in fraudulent claims.

But they have help. What earlier required a physical assessment and site visit can be done in minutes with the help of images, videos, mobile apps and drones. Routine claims are automated, and they are free to focus on the more complex cases. They are thus able to contribute towards system-building so that a greater proportion of claims can be automated and systemic controls strengthened for fraud detection and dispute resolution.

Agents and Brokers

These used to be the primary sales drivers for insurance companies. Their job was based on creating and managing relationships with people who could have a need for insurance and supplying them with the right product at the right time.

They are still important, but can no longer be considered as the primary drivers. Digital direct sales, where the insurer sells directly through their online presence, has moved up the value chain. As has aggregation, where a third-party, who is not an insurer, provides a basket of choices to the customer, where he/ she can also compare one against the other.

Many agents have evolved and become financial advisors. They are no longer pushing products. They are going deeper into the customer’s life and needs and adding value through advice, which is not limited to insurance. Many others have evolved to focus on complex, high-value transactions, such as insurance for business needs.

Technology

Many of these technology roles did not exist thirty years ago. Hence, the focus here is on what they do, not so much how their role has changed.

Cybersecurity experts

Responsible for protecting sensitive customer information and designing strategies to ward off cyberattacks from hacking into the computer systems and either disrupting the processing or stealing data. They also ensure that a customer’s online interaction with the company is not exposed to security risks.

AI and ML engineers

More and more of the processing and decision-making is moving from manual oversight to digital. The AI and ML experts work on creating strategies to move more work into the automated bucket, without compromising on accuracy and customer outcomes.

Data analysts

With the immense volume of data being generated, there is an opportunity in every byte to either create efficiencies for the provider or better outcomes for the customer. They act as advisors to nearly every other role in the business.

UI/UX roles

These are also known as digital experience roles. The customer has choices, we all know that. We also know that a customer is valuable and difficult to get. Hence, when we have his/ her attention, it is important that the provider understands the need and makes the serving of it a fulfilling experience. As a lot of interaction is online, the experience a customer gets while interacting with the online storefronts of the company is the result of the effort put in by the digital experience team.

Keeping pace

At Ushankk, we keep pace with the evolution in industry and the marketplace. This is why we have been a trusted partner to corporations for fulfilling their people requirements. The talent pool we serve also keeps coming back to us to understand the evolution in recruiter requirements.