The buzzwords Big Data and Artificial Intelligence (AI) are currently receiving tremendous media coverage and so does the insurance industry with regard to digitalisation and the co-innovation with the start-up world.
This interview with Lex from MotionsCloud provides insights into the co-innovation between start-ups and insurers who together leverage the power of innovative technologies in favour of customer-centric problem-solving in claims management.
Hello Lex. MotionsCloud, founded in 2016, has evolved from a big data based technology start-up to an AI insurtech company with global footprint. When did you realise that your AI approach helps insurers and what is your vision for MotionsCloud?
To start with, I have been working in the insurance industry for more than 5 years as a claims manager. During the first year, I personally experienced the inefficient, manual and tedious claims processes. Furthermore, I saw how customers were actually unsatisfied with these processes. Since I had a technology background, I constantly looked out for and tested ways to improve claims processes. After about 5 years without any appreciation from management, I decided to leave the company and start MotionsCloud. Together with long-time friends, co-founders, an AI scientist, and a software developer we founded MotionsCloud in January 2016 to fix the claims processes. Our vision is to provide an end-to-end automated, touchless claims process for insurance companies and their customers. Therefore, we have been working together with several insurers, claims management companies and insurance brokers around the globe and we developed a packaged solution for insurance businesses.
So, MotionsCloud automates the processing of claims through the use of AI, how does that work?
Exactly, our goal is to streamline and automate claims processing utilising AI image recognition technologies and deep learning technologies. How does it work? MotionsCloud provides three main modules: First, a self-service mobile web app for customers after first notice of loss (FNOL). Here we provide an easy-to-use mobile web interface that enables customers to interact with their insurer fast and easily. Second, an AI pre-assessment claims platform for claims managers. This is where the magic comes in. Processing claims usually takes tremendous effort just by analysing claims manually. Our AI engine performs these manual activities by using image recognition and deep learning algorithms. With a confidence/precision of approximately 80% in several use cases, we anticipate the reduction of the amount of claims that require individual analysis by actual human beings (approximately 20%) with initial deployment. And third, a live video inspection module for claims managers and customers where we connect both parties and help them to get the claims done remotely—no traveling, no waste of time. These modules connect to each other and integrate into existing claims systems in order to achieve efficiency gains through automation. The goal is to reduce claims cycle time from days to hours, reduce claims processing costs and improve customer claims experience. None of our customer-facing solutions require download, installation or registration of the app. Our solutions are mobile, web-based and personalised to each customer while being compatible to any smart devices, such as your smartphone or tablet.
Today, where do you add value to the insurance industry?
Today, MotionsCloud’s solutions tackle a major issue in the insurance value chain: claims management, including customer claims experience and process management. That means we have built a solution that facilitates claims management by automation of crucial claims processing steps. Consequently, we increase customer claims experience through an easy-to-use mobile web app and reduce claims processing costs. Based on our improved process performance we enable process digitalisation and foster process management.
MotionsCloud opened a U.S. office more than one year ago, what made you take this big step early on?
Exactly, as founders, our aim is to build a global company that could make an impact in the insurance industry—locally and internationally. Expanding to the U.S. has been a first great opportunity for us to achieve our vision. With the acceptance to Global Insurance Accelerator in the U.S., we received a pre-seed investment, great mentorship, and valuable co-innovation partnerships with mid-west insurance companies. Thus, we made the move.
How do you perceive the development and adoption of AI on an international level—do you see gaps between Germany and the U.S.?
This is a very interesting question yet controversial. Both markets are slightly different in terms of culture as well as the development and adoption of technological innovations. The US has a strong reputation as first mover in the domain of innovation, new and futuristic technologies. Businesses there are willing to take higher risks when it comes to new inventions, which accelerates the speed in the market to develop and adopt AI technologies, especially in the information and communication technology (ICT) domain. Thus, we see a gap in our niche, but Germany is catching up in good pace and many corporates are well aware of the value of digitalisation and automation through IT and AI technologies, they understand the particular benefits AI brings to their business.
Media often displays evil AI—thinking of Terminator’s Skynet or The Matrix—where do you see the future of AI in insurance?
Efficient, on-demand, automated and seamless customer claims experience. We envision a future where insurance services are available anytime anywhere as part of a physical product or services while claims management is fully automated through optimised digital end-to-end processes that are enabled by the Internet of Things (IoT), big data, VR, AR and AI to manage, assess, evaluate and settle claims.
Thank you for your time and your insights from the insurtech perspective, Lex.
MotionsCloud provides a claims automation engine for property and motor insurers to streamline and automate claims processes. The solution reduces claims cycle time from days to hours, reduces claims processing cost up to 75%, and improves the customer claims experience with mobile, artificial intelligence (AI image recognition technologies), and video-enabled technologies which can integrate with legacy systems. Currently, MotionsCloud is serving clients in Germany, Austria, Netherlands, the U.S. and recently in Asia.
Further information on MotionsCloud can be found on the Fintech Hub by zeb.
Lex (Xing | LinkedIn) is founder and CEO of MotionsCloud—an insurtech company that streamlines and automates claims processes of property and motor insurance companies with mobile, AI and video communication technologies.
On a personal level, Lex is a serial entrepreneur, engineer and internet marketer. Recently, he has been ranked as one of the top 10 insurtech influencers on social media, and he serves as a mentor in the Munich-based W1 InsurTech Accelerator program, which is backed by major German insurers. In the past, Lex worked in the insurance industry for more than five years as a claims representative and was one of the award winners of the HSBC Young Entrepreneur Award and Erasmus for Young Entrepreneurs Award.