While new technologies can greatly improve business operations, the rush to digitize every operational process can leave critical data exposed.
The pandemic has accelerated the digital transformation around the world. Following the spike in VPN usage, more companies are considering technologies that would automate their business processes. But what does this mean for the efficiency and security of their operations?
To discuss the implications of such technology usage in the insurance sector, we invited Layak Singh, CEO of Artivatic – a company that harnesses the power of AI and machine learning to make insurance processes more efficient.
Tell us a little bit about your story. How did Artivatic originate?
Artivatic is a global risk & decision-making platform that helps with automating human decisions in the insurance sector and provides transparency, efficiency, personalization, risk assessment, and digitization throughout the entire lifecycle of operations. By using machine learning (ML) and proprietary algorithms, Artivatic offers insurance & healthcare solutions such as smart risk underwriting, real-time personalized products & automated onboarding, alternative data insights, claims automation, and more.
Artivatic's inception happened after our last start-up COGXIO & DateIITians failed. However, instead of giving up, we went ahead with creating something more creative and purposeful. We considered all our learning, process, research, and understanding to create this new product, which is entirely a B2B AI Platform, focused on cross-industry intelligence in real-time. We did face numerous challenges such as building a new team, working without a salary, financial crunch, living in an office to save costs, getting rejected, and many more. It took almost 3 months for us to produce Artivatic.
Can you introduce us to your platform? What methods do you use to identify and assess risks?
Our aim has always been to build cutting-edge insurance solutions and products to mitigate risk assessment, automate processes and make insurance available 24*7 through tech-led platforms. As market leaders, we aim to continue being the pioneers in the dynamic insurance landscape by providing innovative technologies (be it AI, ML, Predictive Analysis, or Blockchain) to insurers, and thus revolutionize the insurance sector in India. We are building next-generation insurance products & solutions that will simplify risk assessment, digital use, and process automation to enable access to insurance with our technology-driven innovations.We usually use prevalent AI governance techniques in most instances. In some rare cases, we also bring together industry pundits, academic experts, and AI gurus to identify the risks and advice on how best to take care of the issues at hand since we believe that everything can be achieved with a collaborative approach.
Where do you hope to see AI used more widely in the future?
AI is advancing every day, affecting industries from manufacturing to retail and even insurance. Some insurers are already utilizing AI and ML to automate certain areas of the claims handling process and enhance customer service. Blockchain is being used to detect insurance fraud, secure transactions, prevent risk and even decrease the cost of a policy. As the use of these technologies becomes more widespread, the insurance industry may potentially become more accurate, efficient, and secure.
AI can assist businesses in learning about consumer habits, make good recommendations, and simplify how the products are promoted and categorized. In other words, artificial intelligence can help remove the friction in consumerism. This might allow insurance companies to increase their partner networks and provide more personalized experiences.
At Artivatic, the healthcare industry is one of the main fields of focus. How do you think this sector is going to evolve in the upcoming years?
Over the next few decades, healthcare will undergo rapid transformation with the focus shifting from healthcare to "health." Though healthcare challenges and illnesses will continue, through data, science, and technology, healthcare providers will be better able to identify diseases, intervene proactively as well as develop a better understanding of disease progressions to help patients more effectively and sustain their well-being.
In healthcare and medicine, digitalization will potentially change unsustainable healthcare systems into sustainable ones, provide cheaper, faster, and more effective solutions, and even equalize the relationship between healthcare professionals and patients. AI will change the way insurance companies collect info and interact with their consumers. As per McKinsey, AI in insurance could increase productivity in processes and lessen operational expenses by up to 40 percent by 2030.
What would you consider to be some of the most pressing issues surrounding the insurance industry nowadays?
Low penetration in most rural areas has been a big problem, as a significant section of the population remains uninsured. Because of few buyers and sellers of insurance in rural geographies, market power shifts to insurers and results in increased prices, which further leads to lower penetration. Lack of awareness is another major issue. Unsurprisingly, less than 15% of the population purchases a health insurance policy. The expansion of insurance to the unpenetrated markets of India remains a challenge because of insufficient capital that needs to be invested. A crucial step would be to involve more access to low-cost and simple products, provided the gap that exists between pricing and affordability. To make the insurance market more inclusive and competitive, regulators and insurers must reform their approach to penetration and face all challenges head-on to create a transformation in the industry.
Since many businesses have adopted the work from home policy, security risks have increased. Which digital habits are often overlooked but can cause severe damage to companies?
The pandemic has brought about a substantial change in criminal activity. Cybercrime is increasing as cybercriminals exploit internet users. Cybercriminals are re-adapting their tactics and are now targeting people who are working from home. As working from home becomes the new normal, new types of data theft arise. Emails, cloud documents, and attachments along with instant messaging apps and third-party services, are all vulnerable. With massive amounts of information being shared online, the attack surface has become much wider. Another threat that can affect remote workers is the possibility of cyber attackers sending phishing emails. These are fraud emails designed to fool people into sharing their details or downloading a malicious attachment that contains a keylogger.
Additionally, what security solutions should companies and individuals implement to enhance their cybersecurity posture?
It is important for companies to make employees aware of the issues, train them in managing important data and remind them of the company’s code of conduct and related rules. It is also equally important to daily check that the security measures adopted to protect new and tactical IT solutions are effective. Companies must also step-up security monitoring of devices, as well as users, to enable them to proactively identify and correct mistakes done by users in managing crucial sensitive data. As part of the security measures, one must validate the security effectiveness of the most important service providers, sales partners, and suppliers. Weaknesses in the supply chain can lead to major cyber data breaches.
Share with us, what is next for Artivatic?
Artivatic.ai is on the verge of empowering the insurance and healthcare sector globally with its patent in-house technologies. Three years on, we are already fast-tracking into the next phase of growth by following our course. Being able to provide an array of sophisticated, personalized insurance offerings with zero hassle is our long-term goal. Within the next five years, we want to establish ourselves as a globally recognized InsurTech company, with a clear focus on:
• Developing local teams to power a decentralized capabilities network, thus putting in place a scalable model.
• Establishing the brand with every operational center scaling up independently in its area.
• Expanding commercial and SME sectors by developing next-gen platforms and byte-size insurance plans that will affect industry growth.
Presently, we are all aligning to the new reality in the wake of unprecedented challenges faced by businesses worldwide. Artivatic is now part of a larger family with RenewBuy.com – A disruptive InsurTech player providing choice and convenience to customers looking for Health, Life, and Motor Insurance products, delivered through a trusted network of POSP (Point of Sales Person) advisors.
Artivatic.AI has been delivering underwriting and claim solutions to multiple life and non-life insurers. The acquisition will allow RenewBuy to extend its tech solutions across the value chain – from sales to underwriting and claim solutions.
The deep tech integration will help in providing consumer solutions related to insurance claim settlements (which remains a challenge for the category), risk assessments, and underwriting. RenewBuy will take ownership of Artivatic.AI’s SaaS solutions for insurance, IP, and product portfolio. Artivatic.AI’s 6+ patents in the FinTech space will enhance RenewBuy’s current policy delivery and servicing capabilities.
Partnering with RenewBuy will overnight give us the exposure of reaching out to three million consumers and help deliver innovative product solutions.