Amidst the AI revolution, e27 presents a new series showcasing how organisations embrace AI in their operations.
Raunak Mehta is Co-Founder and CEO of Singapore-based insurtech firm Igloo. With a background in e-commerce and technology, Mehta previously held roles at notable companies, such as Flipkart and ZALORA Group.
He joined Igloo as its Chief Commercial Officer in 2018, leading its expansion into multiple countries and securing partnerships with entities like Lazada, Shopee, and Bukalapak. Igloo recently announced its US$19 million Series B financing round, bringing its total capital to over US$36 million.
In this edition, Mehta shares how Igloo has embraced Artificial Intelligence.
Edited excerpts:
How do you perceive the AI revolution and its potential impact on your industry and workforce?
The excitement surrounding Artificial Intelligence is unquestionably justified. When evaluating the potential of this remarkable technology, it is crucial to consider its capacity to impact many individuals. What sets AI apart is its ability to operate on a grand scale, making it readily accessible to anyone with a smartphone.
Like most other industries, insurance will significantly benefit from the AI revolution. It has emerged as a powerful technological marvel that can transform risk management, underwriting, and claims processes. Forbes reports a remarkable 60 per cent increase in operational efficiency in the insurance sector due to AI. Alongside this, claims accuracy has nearly doubled, substantially improving customer experiences.
Through AI, insurers are better equipped to assess risks, detect fraud, and improve overall accuracy and efficiency — especially with the addition of machine learning. It also helps streamline processes and create a more seamless customer experience.
In what ways has your company embraced AI technologies to improve operational efficiency or enhance business processes?
Igloo aims to make insurance affordable and accessible to all, and technologies like AI enable us to do so. For example, our platform Turbo uses AI and ML to provide agility and adaptability to our insurance management systems. Through Turbo, we can operate across multiple business lines and deliver the same products and services via different distribution channels.
Turbo also uses a no-code approach, quickening the product launch or update process. It also helps reduce errors and inconsistencies by centralising the product launch process.
Can you share specific examples of how AI has been integrated into your workforce to streamline operations or drive innovation?
Our team has developed a groundbreaking technology that harnesses the power of AI to provide protection. Through AI, we have delivered seamless customer experiences and reached a wider customer base.
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To create fuss-free claims management, we use AI to enable customers to make claims directly through their mobile apps, thus saving waiting time and reducing complexity. For example, customers protected under our gadget protection can submit claims through their phones, needing only pictures as proof.
Through extensive training, we have empowered our system to detect cracked screens with remarkable accuracy. This innovation allowed us to reduce false claim rates by an impressive 50-60 per cent, ensuring a seamless user experience.
We also combine AI with big data and predictive analytics in our insurance products, such as auto insurance, to assess risks in real time and create end-to-end automated claims management. This allows us to implement a dynamic pricing model, ensuring no customer pays more than they deserve.
What challenges or concerns did you encounter when implementing AI technologies within your organisation, and how did you address them?
When we launched Ignite by Igloo, our AI-powered platform that helps insurance intermediaries enhance productivity and enables a faster sales cycle, there were few insurtech players in Vietnam. Agents at that time were only used to working traditionally with face-to-face transactions.
However, our perseverance in changing agent mindsets through regular training helped them keep up with new technologies and enhance their sales productivity and income.
We upgraded the platform from two products and simple features to over 20 advanced features with user experience at the heart of things. From 200-300 agents at the beginning, we now have 16,000 agents nationwide who can work anywhere and sell insurance products anywhere as long as they’ve got internet access.
How do you ensure transparency and uphold ethical considerations in using AI technologies within your organisation to mitigate privacy concerns?
There are concerns about AI shaping our perceptions and perpetuating negative biases. To navigate these challenges responsibly, we must prioritise ethical considerations, ensuring diverse and unbiased training datasets. Our collective responsibility is to promote transparency, fairness, and inclusivity in AI development, harnessing its potential while mitigating negative societal impacts.
Organisations should adopt a privacy-by-design strategy, gaining informed consent from users, reducing data collection, and implementing safe data storage mechanisms to maintain transparency and uphold ethical principles in using AI technologies.
Also Read: AI must be used to enhance team members’ expertise, not to sideline them: Ravi Dodda of MoEngage
Techniques for anonymisation and de-identification can further safeguard user privacy. To overcome biases, encourage user education, and adhere to applicable regulations, regular third-party audits, open-source projects, and continuing monitoring are crucial.
How do you ensure that AI technologies complement your workforce’s existing skills and expertise rather than replacing or displacing human workers?
Our approach at Igloo is always to upskill rather than replace. We have a team of enthusiastic individuals who are always eager to try new things and embrace new working methods. We prefer to supplement our expertise with new knowledge and experiences.
How do you envision the future collaboration between humans and AI? What role do you see AI playing in augmenting human capabilities?
I am excited at the potential that AI can offer, and I expect AI to play a major role in all walks of life in the future. AI will never be a replacement but a way to augment human capabilities by taking on more data-intensive tasks and taking us beyond what’s possible. AI will be everyone’s favourite co-worker in the workplace, aiding decision-making and simplifying complex tasks.
For insurance specifically, AI can potentially transform every aspect of the industry. AI can crunch big chunks of data to provide actionable insights, leaving human agents to focus on more difficult service areas.
For example, AI has allowed insurers and insurtech firms to heighten focus on customer experience by making the purchase process simpler and safer. AI can be used to actively monitor potentially fraudulent activities by utilising past instances of fraud and detecting suspicious activity. With AI, there is the potential to use predictive analytics to study demand, implement dynamic pricing, and create new products.
Having said that, humans must still provide the creativity, empathy, ethics, and complex decision-making skills that AI lacks. There are many considerations to make before implementing AI to such an extent, namely ethics and accountability.
What advice would you give to other company founders looking to leverage AI in their workforce?
It is common for people to avoid change. Many founders in Southeast Asia tend to be averse to AI due to the many challenges that they may face while implementing it. I would advise them to conduct thorough research into AI and understand how it can be applied to their business and operations. AI provides many benefits, and it is essential to understand which ones apply to your business.
I would also advise them to upskill themselves and encourage their team to do so. AI is not a replacement but a complementary addition.
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