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5 Ways Insurance Firms Can Benefit from Cognitive Systems, RPA

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The International Data Corporation (IDC) has announced the release of a new IDC PlanScape, Implementing Cognitive Systems in Insurance Organizations (IDC #EMEA42877517), to help business and IT executives in insurance organizations (insurers and intermediary organizations) understand what cognitive systems are, why they are relevant, and how they can be used to improve customer experience, decision making, and operational efficiencies across various business functions.

The study will help organizations build the business case and a road map to implement the technology.

IDC’s survey of 156 U.S. insurers in mid-2016 shows that the adoption rates for cognitive are low, with only 6% currently using it in their organizations. 10.9% are in the implementation stage and 12.3% are currently in the evaluation stage.

The story is no different in Europe, where only 5.7% of the 87 insurers surveyed by IDC in late 2016 are using the technology.

Around 10% are planning to adopt it in the next 12 months and 14.9% are currently in the evaluation stage.

Insurance organizations are losing out on a great opportunity here, as cognitive systems and cognitive RPA can act as effective accelerators in their digital transformation journey to meet the expectations of customers and an evolving marketplace.

The good news is that IDC sees a more positive outlook emerging this year with the technology maturing at a faster pace and more vendors bringing better propositions to the market.

The new research stresses that if used the right way, cognitive and cognitive RPA can have a positive impact and help transform different insurance business functions in these five key ways:

Customer engagement: cognitive systems and cognitive RPA can enhance the onboarding experience across channels such as online and mobile by leveraging the structured and unstructured data about customers and their risks from different internal and external data sources.

Insurance sales and customer service: cognitive systems can help analyze vast amounts of data, identify patterns based on customer interactions, and reduce the amount of time spent on mundane tasks.

Underwriting and risk management: the technology can enable underwriters to arrive at decisions more quickly and accurately.

Claims management: the technology can be used to develop predictive models for insurance claims, expense management, and loss analysis.

Fraud handling: cognitive systems can analyze accident images or phone conversations to check fraudulent patterns or study the data from connected devices and sensors in cars or homes to detect suspicious activities.

“The insurance industry is currently on a digital mission to offer contextual and value-centric products and offerings to its customers driven by the change in customer and market expectations, technological disruptions, and the emergence of new kinds of competition. Cognitive systems can present effective options to help accelerate the transformation journey to achieve this digital mission and stay competitive. Insurance organizations need to have a clear strategy as well as the right skills and partnerships in place to implement the technology and reap the benefits,” said Sabitha Majukumar, senior research analyst, IDC Financial Insights.

“Cognitive robotic process automation [RPA] is one of the most prominent applications of cognitive technology emerging in insurance,” said Arun Dani, senior research analyst, IDC European Services. “With the integration of cognitive technologies, RPA is making its way to the front-office operations of insurance organizations. Cognitive RPA, also known as intelligent RPA or simply intelligent automation in the form of robo advisors, chat bots, and virtual insurance agents, is expected to have a significant impact on customer engagement roles in the industry in the coming years.”


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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