As the world becomes more complex and interconnected, the need for insurance has become increasingly important. However, many people still lack adequate insurance coverage, particularly in developing countries.

Fortunately, Artificial Intelligence has the potential to increase insurance penetration by making insurance more accessible and affordable for everyone.

Here are just a few ways in which AI can help increase insurance penetration.

Improving risk assessment

One of the key challenges in insurance is accurately assessing risk. AI can help by analysing vast amounts of data on individuals and businesses to identify risk factors and predict the likelihood of a claim. This can enable insurers to offer more personalised and accurate policies, making insurance more accessible to a wider range of people.

Example: Coherent Spark’s AI-powered core parses spreadsheet coding logic into APIs that integrate with any platform. With this tool, insurers can automate many processes, including risk modelling and back-office actuarial calculations, among many others.

Enhancing underwriting efficiency

Underwriting is the process by which insurers evaluate and price insurance policies. This process can be time-consuming and expensive, particularly for complex policies. AI can help by automating much of the underwriting process, reducing costs and enabling insurers to offer policies more quickly and efficiently.

Example: Artificial Lab aims to make the complex insurance underwriting process frictionless, with its single automated platform helping insurers to underwrite faster while reducing loss ratios.

Streamlining claims processing

Another key area where AI can make a difference is claims processing. AI can help insurers identify fraudulent claims more quickly and accurately, reducing the costs associated with fraud and enabling insurers to process legitimate claims more quickly. This can improve the overall customer experience and increase the likelihood that customers will renew their policies.

Example: sprout.ai is building a platform that helps insurers deliver fast and accurate claims decisions. With the platform, insurers can process claims in minutes at a 97 per cent accuracy level.

Enabling personalised pricing

Traditionally, insurance policies have been priced based on broad risk categories. However, AI can enable insurers to price policies more accurately based on an individual’s specific risk profile. This can make insurance more affordable for low-risk individuals and businesses while still ensuring that high-risk individuals and businesses are adequately covered.

Example: Igloo Insure’s dynamic pricing model and real-time risk engine help businesses ensure that their customers enjoy competitive rates based on their risk profiles.

Also Read: Levelling the playing field: How AI can transform SME hiring

Enhancing customer engagement

Finally, AI can help insurers improve customer engagement by offering personalised recommendations and advice based on an individual’s specific needs and preferences. This can help insurers build stronger relationships with their customers and increase customer loyalty over time.

Example: Assurance IQ (acquired by Prudential Financial) uses AI to sell personalised insurance products. The company uses AI and data collection to make personalised recommendations based on general questions about medical and lifestyle habits.

Of course, there are also potential risks and challenges associated with the use of AI in the insurance industry, including issues related to data privacy, security, and bias. However, these challenges can be addressed through careful planning and the development of appropriate regulatory frameworks.

Ultimately, the benefits of AI in the insurance industry are too great to ignore. By leveraging the power of this transformative technology, we can increase insurance penetration, making insurance more accessible and affordable for everyone. This, in turn, can help mitigate the financial risks associated with unexpected events, promote economic stability, and improve the overall quality of life.

Parting thoughts

At Cathay Innovation, we’ve invested in startups around the globe, developing innovative solutions for the insurance industry from Coherent, Igloo, Lifepal and Yuanbao Insurance in Asia, Descartes Underwriting, Qover and Coverfy in Europe and Sidecar Health in the US.

We’re also backed by some of the largest financial institutions and insurers, such as BNP Paribas Cardif, who are not only investors but strategic partners closely working with us and our portfolio companies to bring innovation to life in the real world. 

What’s become clear is that the potential of AI to increase insurance penetration is significant, and insurers that embrace this technology stand to gain a competitive advantage in the marketplace.

By improving risk assessment, enhancing underwriting efficiency, streamlining claims processing, enabling personalised pricing, and enhancing customer engagement, AI can help insurers create a more accessible, affordable, and personalised insurance experience for all.

Building in the space? Feel free to reach out.

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On Monday, the Association of Indonesian Venture Capital and Startups (AMVESINDO) released a report that revealed the performance of venture capital (VC) investments in the country in the first half of 2023. According to the report, the Indonesian VC industry saw consistent growth, with investments reaching IDR27.35 trillion (US$1.7 billion) in June 2023.

A combination of conventional and Sharia-based VC investments, the number was an increase from December 2022’s position of IDR25.94 trillion.

As seen in the following graphic (in IDR trillion), with the blue graphic representing conventional VC and the red graphic representing Sharia-based VC, the steady increase signifies investors’ trust in the potential of the Indonesian tech startup ecosystem, despite back-to-back global crises.

Also Read: Looking east: Why the future of VC investment is beyond the Silicon Valley

The number of VC firms operating and investing in Indonesia also remains consistent at 55 organisations.

According to AMVESINDO Chairman Eddi Danusaputro in a press statement, this signifies positive movements in the industry.

“However, there is still a need for a pentahelix collaboration between involved parties, including the government and VC firms, in order to achieve stronger and more exponential growth,” he said.

In order to achieve that, AMVESINDO proposed five recommendations to support the growth of the VC industry in Indonesia:

1. The association calls for separating the category of VC firms from financing firms. This separation is based on the consideration that the role of VC firms in Indonesia is still relatively small in the non-bank financial industry
2. The association also calls for a separation between VC firms that focus on financing and those that focus on equity participation, completed with different sets of regulations for both categories
3. The association highlights the need for incentives, stronger regulation and licensing, and education to promote VC investments to local investors
4. The association also aims to encourage regional VC firms to conduct more equity participation investments
5. The association supports collaboration to strengthen the VC investments industry through education and certification

e27 noted in a recent listicle about the Indonesian startup ecosystem that VC investments in H1 2023 were mostly dominated by early stage startups in various verticals. There are also a number of acquisition and international expansion moves made by Indonesian startups, which were previously known to put a stronger focus on the local market.

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Image Credit: RunwayML

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Amidst the AI revolution, e27 presents a new series showcasing how organisations embrace AI in their operations.

As the Managing Director of Equinix South Asia, Yee May Leong oversees its business strategy in the region, including its sustainability initiatives. Her role involves advancing the digital transformation of businesses to align with Singapore’s ambition to become a leading digital hub in Asia.

Leong joined Equinix in 2019 and brings over 35 years of ICT experience working in companies such as IBM, Lotus, F5 Networks, and Orange Business Services. She earned a Bachelor’s Degree in mathematics, specialising in computer science, from the University of Waterloo in Canada and completed an advanced management program at Harvard Business School.

In this edition, Leong shares how Equinix has embraced Artificial Intelligence.

Edited excerpts:

How do you perceive the AI revolution and its potential impact on your industry and workforce?

There are many ways to look at Artificial Intelligence. From our business perspective alone, AI has a significant impact and is transforming how we conduct business. It has improved our efficiency by automating some of our internal processes, continually driving innovation from many of our teams and enhancing our customer experiences.

From the perspective of what we solve for our customers, AI requires another ecosystem to meet ESG and innovation needs. The current generation of generative AI requires a large amount of data or capacity — it needs quality datasets to contextualise and learn from.

At the same time, processing all that data requires significantly higher levels of parallel computing power than conventional workloads, which creates infrastructure management challenges. Platform Equinix is designed to help IT infrastructure teams tackle those challenges, freeing their organisational resources to realise the value of AI solutions quicker.

AI has the potential to spur innovation and unravel efficiencies in every corner of business or industry. Organisations must learn and adapt to AI or lose their competitive edge in the long run. Simply put, an organisation with a more efficient AI-enabled workforce will be an overwhelming force against competitors.

All this starts from understanding how AI can help their business to build the right digital infrastructure to support those data, AI applications and ESG needs. Identifying the right partners with green data centres and fast interconnects is just as important.

Can you share specific examples of how AI has been integrated into your workforce to streamline operations or drive innovation?

We use AI in multiple contexts in our operations. Even before the pandemic, Equinix had implemented an AI-powered chatbot to assist its employees in resolving IT issues.

By using the chatbot to analyse problems, from password issues, unlocking accounts, filling out forms, or finding conference rooms and more, employees can save time on these tasks and focus on more rewarding projects. If not resolved, the queries are rerouted to the right experts with a 96 per cent accuracy that it reaches the right group.

Artificial Intelligence is also tied to our business transformation, particularly in forecasting. For example, once a data centre is built, we use AI to predict its capacity, which then helps us optimise our workforce, inventory and, most importantly, energy resources needed for the infrastructure.

We also encourage customers’ adoption of AI, including automation processes and management of their IT equipment. For example, we offer automated notifications to remind customers to clean their data centre cages properly and comply with safety policies. This keeps customers informed about protecting their equipment and maximising energy efficiency.

Also Read: The value for biz lies in how humans, AI will enhance each other’s strengths: Mixpanel CEO

We also provide automated interconnection opportunity maps. These allow our customers to maximise the value proposition from Platform Equinix® and make the most of our robust, global network.

What challenges or concerns did you encounter when implementing AI technologies within your organisation, and how did you address them?

AI has become more prominent recently, thanks to the ChatGPT boom last year. But Equinix has long realised the importance and power of AI as it has become one of our foremost business imperatives for a while now.

One of our challenges was around talent. Finding and grooming the right talents took us some time, and we are not alone. According to ManpowerGroup, a staggering 77 per cent of employers are experiencing difficulties filling job vacancies, marking the highest talent shortage in 17 years.

In Singapore, according to a recently released report on job vacancies in 2022 by the Ministry of Manpower (MOM), software and applications managers ranked sixth, whilst systems analysts ranked eighth in terms of vacancies.

We have always believed that investing in tech talents will pay off. Therefore, we have implemented several programs dedicated to employing and upskilling our existing talent pool on AI technology so that they could creatively develop, troubleshoot and ensure the process falls within regulatory guidelines and practices.

How do you ensure transparency and uphold ethical considerations in using AI technologies within your organisation to mitigate privacy concerns?

Equinix believes that the responsible approach to AI is rooted in integrity. Firstly, data security and privacy are key so that the AI data inputs are clean and not corrupted. Meanwhile, good data compliance and governance are necessary layers of soundboard and transparency to ensure good-quality datasets. This is because the data, computation, and quality of context in the data affect the outcome of the result.

We lay the foundation with our team to uphold this practice because we are dedicated to using AI models to maximise business value for our customers.

How do you envision the future collaboration between humans and AI? What role do you see AI playing in augmenting human capabilities?

At Equinix, people and AI are complementary to each other. The creativity and innovation behind the technology or solutions come from humans, while AI amplifies those solutions to scale and at speed. Similarly, we will need more talent in the workforce to better understand AI. Our vision is for an efficient AI-enabled workforce rather than a workforce filled with AI applications.

Also Read: AI has its advantages but it can never fully replace humans: Asnawi Jufrie of SleekFlow

As more of the world looks to bridge the gap between human capabilities with the advancement of AI, we believe companies will look to Everything as a Service (XaaS) to support their digital AI transformations. XaaS platforms provide seamless access to AI as a service hosted on cloud infrastructure and a growing suite of software tools and digital solutions that can be utilised on demand.

Our Platform Equinix runs on high-performing distributed AI infrastructure to enable IT teams to overcome AI complexity and manage massive data volumes, freeing up business units to focus on critical work.

We believe a world where humans can leverage AI to achieve objectives in a much shorter phase is already possible. With further innovations and developments, we look forward to how human ingenuity can enable more industry-changing solutions when augmented by AI.

What advice would you give to other company founders looking to leverage Artificial Intelligence in their workforce?

AI can improve many internal processes in the back office, enabling employees to focus on higher-value needs. Similarly, AI enables organisations to find fit for roles without bias, meaning businesses can find the best talent for the job.

Ultimately, it is a journey. This journey is limited only by our own imaginations. Like any past technological advancement, Artificial Intelligence is only a tool to help us achieve our goals.

In summary:

• Understand and appreciate how AI can help you achieve those goals
• Plan and develop the right infrastructure and talent within your organisation
• Look for the right partners to help you reach goals at scale and speed

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Here at e27, we get things done.

Known to many as an ecosystem enabler and a leading platform for startups, tech companies, investors, and innovators, e27 has cultivated a dynamic ecosystem that fosters connections, insights, and opportunities. Its wide-reaching network spans media, events, and community engagement, making it an ideal partner for companies aiming to amplify their reach and influence in the tech and business world.

China Mobile International Limited (CMI) is a great example of an organisation that has leveraged e27’s network and harnessed its wide reach to shed light on important topics today. A visionary enterprise, CMI recognised the need to propel its industry transformation and drive digital intelligence to the forefront of its operations. With this in mind, they introduced iSolutions — an all-encompassing enterprise solution designed to streamline processes, enhance efficiency, and provide actionable insights through data-driven strategies, operating as a one-stop shop for businesses undergoing digital transformation.

e27’s strategic role in emboldening iSolutions

Understanding the potential of iSolutions, CMI sought a partner that could help them reach the right audience and communicate the value of their offering in ways that will translate to tangible results. This is where e27’s expertise came into play. By collaborating with CMI to craft an insightful and engaging article on iSolutions, e27 harnessed its platform’s reach to generate massive visibility for the solution.

The article, carefully crafted by e27’s team, delved deep into the goals of the iSolutions Carnival, a program where CMI ran a series of special offers that allow enterprise customers to experience comprehensive iSolutions services that seamlessly integrate cloud-network, IoT, industrial solutions, and other leading technologies.

Also read: Redefining customer engagement via real-time interactivity

The media campaign spearheaded by e27 highlighted how the solution addresses industry pain points, offers innovative solutions, and sets a new standard for digital intelligence. The article showcased iSolutions’ real-world impact by employing a data-driven approach, substantiating its potential to transform businesses across various sectors. CMI hoped to convey their commitment to supporting its customers in their digital-intelligent journey with richer and tailored solutions while facilitating them to capture business opportunities brought by the metaverse and other emerging technologies — something that e27 was able to capture and simplify for its audience.

Amplifying China Mobile International’s message

Once the article was published, e27 activated its formidable promotional channels to ensure the message reached a vast and relevant audience. The article was featured across e27’s public channels, including its website, social media platforms, and newsletters, enabling CMI’s message to penetrate different corners of the tech and business ecosystem.

The impact was nothing short of remarkable. The article garnered over 10,000 page views, demonstrating a strong resonance with e27’s audience. The ripple effect of the article’s promotion was further evidenced by the impressive 196,000 impressions that the campaign received on the e27 website during this period.

e27’s strategic approach to social media promotion also helped significantly amplify CMI’s message.

Beyond the Numbers: Catalysing digital transformation

While the quantitative metrics are undoubtedly impressive, the impact of e27’s collaboration with CMI transcends mere numbers. The article’s success resonated with CMI’s overarching goal of accelerating industry transformation and embracing digital intelligence. By leveraging e27’s platform, CMI was able to effectively communicate iSolutions’ potential to a broader audience, influencing business leaders, decision-makers, and innovators to explore the transformative capabilities of the solution.

Also read: e27’s partnership with Visa yields success for the leader in payments solutions

The strategic partnership between China Mobile International Limited (CMI) and e27 exemplifies the deep impact that effective content marketing and collaboration can have on promoting transformative solutions. Through an insightful article that highlighted the potential of iSolutions and simplified its message to a diverse audience, e27’s platform became a catalyst for CMI’s goal of accelerating industry transformation and embracing digital intelligence. The article’s remarkable engagement metrics underscored the power of e27’s reach and influence. At the same time, it solidified CMI’s position as a leader in digital transformation across the Southeast Asian region.

The collaboration between CMI and e27 serves as an important case study for businesses looking to propel their offerings onto a global stage. By harnessing the capabilities of strategic partners and platforms like e27, enterprises can showcase their innovation and drive meaningful industry-wide change. As technology continues to reshape industries, partnerships that amplify transformational narratives will be key to shaping the business landscape of the future, and e27 can be the partner you need to drive that change.

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Singapore-based solar-as-a-service startup Solar AI Technologies has secured US$1.5 million in a seed funding round led by Earth Venture Capital with participation from Undivided Ventures, Investible, and climate-tech angel investor David Pardo.

The funds will primarily be used to upscale its rent-to-own (RTO) solar programme in the island nation before embarking on regional expansion in the next 12 months.

Started in 2020 by Chew (CEO), Gérald Chablowski (CTO), and Luke Ong, Solar AI seeks to make rooftop solar accessible and hassle-free for smaller, underserved property owners by providing them with zero upfront cost.

Its primary product is its RTO solar programme, which enables customers to own a solar panel system with zero upfront cost, paying a flat monthly fee for installation, maintenance, servicing, and energy generation guarantee.

Compared to the traditional solar offer that demands an upfront cost of US$15,000 to US$50,000, the startup’s RTO model helps de-risk solar as a renewable energy solution, particularly in Southeast Asia, with a penetration rate of less than 1 per cent.

Also Read: This startup aims to make rooftop solar accessible to smaller households with zero upfront cost

Since the global energy crisis, grid electricity prices within Southeast Asia have increased by close to 30 per cent, alongside increasing policy support and market demand for renewables. However, more than 95 per cent of rooftops in Southeast Asia still do not have access to zero-upfront or leasing options for solar, which can contribute more than 200 megatons of carbon emission reductions per year.

Solar AI charges customers a fixed monthly fee (usually lower than their electricity bill savings) in the RTO model — a prominent model executed by sunrun in the US and Enpalin Germany. When a customer is enrolled in the RTO programme, he/she will get free daily monitoring and maintenance. It will then convert the ownership after the contract period.

If a customer decides to shift to a new location, the startup will assist him/her in transferring the service to the new homeowner.

“Investing in Solar AI Technologies allows Earth VC to support the hyperscaling of solar installation in Southeast Asia through the RTO model that will address pressing environmental challenges,” said Linh Nguyen, General Partner of Earth Venture Capital.

“There is a huge amount of untapped potential for both residential and commercial solar-as-a-service throughout Southeast Asia. The traction and robust pipeline Solar AI team have achieved to date is a strong indicator for their ability to be a leader throughout the region as its development continues to accelerate,” added Ben Lindsay, Investment Manager at Investible.

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Image Credit: Solar AI Technologies.

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