Intelligent Fin.tech Issue 07 | Page 50

SPECIALIST INSIGHT

they should pay ); claims adjusters to determine what should be paid out ; and insurance agents to sell and manage policies . That ’ s without getting into other functions such as reinsurers ( who insure insurance companies ), customer service and marketing .
When contracting with ACT , you ’ re not just getting agent capital but a leadership team in a box .
Plus , all of this infrastructure has to speak to banking systems to gather premiums and pay out claims .
These roles are all more complex than has been outlined here , but it should be clear that it takes a lot for an insurer just to come into existence , nevermind build the app that you use to insure your new fridge or claim when someone dings your car .
Importantly , insurers also have to guarantee that every person and technology in that chain complies with the laws and regulations governing the industry .
Fortunately , technology such as Root ’ s is reducing a lot of that complexity . Advanced technologies can highlight anomalies , limit permissions , access third-party data sources – and therefore the risk of internal fraud – and allow insurers to make sure all checks and balances have been addressed in processing claims .
For instance , an actuarial scientist is far more likely to program the algorithm that determines your risk profile than to do the calculation themselves . Artificial
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