What's Happening?
Suncorp is investing in artificial intelligence (AI) and a new policy platform to create more affordable insurance products. CEO Steve Johnston highlighted that a significant portion of the population in Australia and New Zealand struggles to obtain affordable insurance. The company is working with the federal government to find industry-wide solutions to this issue. Suncorp's initiative, known as Digital Insurer, involves a multi-year transformation using Duck Creek as its new policy administration system. This system is already operational for new home and motor customers in New Zealand and aims to simplify underwriting and increase automation. Suncorp is also enhancing its AI capabilities, partnering with leading technology companies to improve
product design and claims processes, ultimately aiming to reduce loss and expense ratios.
Why It's Important?
The initiative by Suncorp to leverage AI and overhaul its core systems is significant as it addresses the pressing issue of insurance affordability, which affects a notable segment of the population. By improving product design and claims processes through AI, Suncorp aims to offer more personalized and cost-effective insurance solutions. This move could set a precedent for the insurance industry, encouraging other companies to adopt similar technologies to enhance customer engagement and operational efficiency. The broader impact includes potential reductions in insurance costs for consumers, particularly those facing financial challenges, and a more resilient insurance sector capable of adapting to economic pressures and extreme weather events.
What's Next?
Suncorp plans to continue rolling out its new policy platform across its brands, with the next release targeting AAMI home and motor new business by mid-year. The company will also focus on migrating existing policies at renewal. As Suncorp advances its AI capabilities, it will explore further applications across its insurance operations, aiming to enhance customer experience and operational efficiency. The success of these initiatives could influence industry standards and regulatory approaches to insurance affordability and technology integration.
