Trending December 2023 # 5 Ways Of How Insurers Can Manage Risks In 2023 # Suggested January 2024 # Top 13 Popular

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Nowadays, insurers mainly face with 4 significant risk elements:

Ineffective risk assessment.

Poor diversification strategy.

Inefficient performance in core insurance practices such as claims processing and fraud detection.

Digitalization challenges.

Poor management of these risks resulted in zero or even negative net economic profit for the majority of insurance firms. To be a profitable company, insurers must use technical tools and employ certain strategies. This article will cover them.

1. Implement the most precise underwriting possible

Insurance is the exchange of money for the risk of someone else. If insurers evaluate someone else’s risk incorrectly, they may face bankruptcy. Therefore, precise underwriting or risk assessment is essential for insurance companies to minimize risk.

The problem is that; underwriters have a tradeoff between risk minimizing and market share. Premium price is determined more or less by the value established at the end of the underwriting process. Furthermore, because the best price is the most important factor for insurance clients, underwriters cannot use wide confidence intervals in order to reduce risk exposure as this would increase the premium price.

For a while, the bulk of insurance businesses generated roughly zero economic profit due to this tradeoff (see Figure 2). Underwriters must employ contemporary technology solutions to automate the underwriting process and boost underwriting efficiency in order to become one of the outliers.

Figure 2: Distribution of economic profits of insurance companies.

Effective underwriting is directly related to the amount of high-quality data used and computing power available. As a result, insurers should use the following instruments:

Insuring entities with the same risk characteristics could make insurance companies vulnerable. Consider a climate insurance company that sells policies to farmers to help them mitigate the effects of extreme weather conditions. If this company builds a portfolio by just insuring corn farmers in Iowa, a flood in Iowa could lead to bankruptcy due to an overwhelming number of claims filed in a short period of time.

As a result, professionals employ mean-variance analysis to combine entities with diverse risk characteristics to produce a portfolio with the lowest risk. For example, a street vendor might invest his/her money in umbrellas and ice cream machines that can be used in both rainy and sunny conditions.

AI/ML models are effective tools to perform mean-variance analysis and provide quick and precise results for the insurers.

Reinsuring is another diversification method that insurers should consider. In exchange for money, such policies shift a portion of the risk to another insurer. As a result, they help insurance firms manage risk.

3. Implement claims reserve policy

In many countries, including the United States, insurance companies are required to set up a statutory reserve. This fund meets the liquidity needs of insurance firms during periods of high claim volume.

In the US for example, insurers’ short-term obligations tend to rise after hurricane season. Statutory reserve regulations protect insurance companies financially in such occasions and help them to keep agreements with insureds.

However, a statutory reserve regulation may not always be enough to prevent an insurance firm from insolvency. To be protected in such scenarios, insurers should set up a claims reserve for future possible claims such as:

Reported but not settled claims: An insured person may notify his or her insurance carrier about a car accident in which they were involved. However, the actual cost of damage may not yet be known. Nevertheless, the insurance company knows it will face financial liability soon. To predict it effectively, insurers need claim adjusters.

Incurred but not reported claims: Some incidents might not be reported to insurance companies yet but insurers are aware that they will be reported at some point. Consider a workplace where workers are exposed to hazardous chemicals. If this company uses a workers’ compensation business insurance coverage, the insurance company knows that one day it will be likely to have a claim since your customers might get sued by one of the toxicated employees.

Insurers should examine the sufficiency of statutory reserve and set aside extra funds as a claims reserve if necessary by analyzing historical claim data and projecting and evaluating reported but not resolved and incurred but not reported claims.

4. Improve other core insurance practices

Underwriting, claims processing, and fraud detection are the three pillars that enable insurance. Improvements in any of these procedures allow insurance companies to increase their price margins by lowering costs or increasing customer retention.

Claims Processing

Almost 90% of insureds think their retention rate is influenced by their satisfaction with previous claims processing. As a result, insurance companies must develop a practical claims processing strategy.

Though many people still prefer human touch for claims processing, lots of technologies can automate specific steps of claims processing as Figure 3 represents.

Figure 3: Technologies that enhance specific steps of claims processing.

Source: AIMultiple

Manage Risks And Trade Easily With Phemex

The crypto space has seen a boom in the past month. While major currencies are doing well, one token that has thrust into the spotlight in the past month is SOL (Solana).

As of September 9th, Coingecko shows that Solana has jumped to the sixth largest coin by market cap and grown to a market value of $59 billion. One of the reasons for its dramatic rise is the launch of the Degenerate Ape Academy NFT project, and another reason might be the wormhole launch.

The Degenerate Ape Academy project is a collection of 10,000 unique cartoon apes which were randomly generated. The NFTs were sold out in under 8 minutes and helped SOL reach an overall trading volume of around 96,000 SOL.

On the other hand, the bidirectional wormhole allows users to move projects, communities, and platforms across blockchains between Ethereum and Solana.

As Solana reaches its all-time high, many crypto traders and investors are looking to invest in it. Phemex, one of the fastest crypto exchanges and futures trading platforms has listed Solana on its exchange.

What is Phemex?

Phemex is a cryptocurrency exchange based out of Singapore and founded in 2023. The platform is the brainchild of a team of 8 former Morgan Stanley Executives who wanted to create a leverage trading platform that was efficient and simple to use.

This crypto and futures trading platform allows over 300,000 transactions per second with an order time of less than 1 millisecond.

Phemex supports over 37 spot currency assets including BTC, ETH, XRP, LTC, ADA, LINK, DOGE, USDT, and the recently listed SOL.

Zero fees and 100x leverage

Phemex has more than 30+ liquidity providers integrated into their platform and allows premium users to trade crypto with zero fees. The platform has both spot and futures contract trading options and is the industry leader with its low-cost membership model. This makes it easy for users to spot trade cryptocurrencies with zero fees.

Additionally, the platform has crypto futures contracts that can be traded with 100x leverage. Phemex also has a non-crypto GOLD/USD trading pair contract and is working on adding more traditional assets and commodities to their platform.

Contracts and spot trading fees

As far as contract trading is concerned, Phemex has a list of multiple perpetual contracts. It also applies the maker and taker model for trading fees. For limit orders, or orders that provide liquidity to the orderbook, a -0.025% rebate is given. For market orders or orders that work to remove liquidity from the orderbook, a 0.075% fee is charged.

Phemex does not charge any fees for holding positions overnight. Funding fees are charged or issued between long and short positions every 8 hours.

Deposits and withdrawals

The platform does not charge any fees when users deposit or withdraw from their trading accounts.

Phemex charges a reasonable fee for Bitcoin withdrawals (0.0005 BTC) which is low compared to other exchanges.

Premium and earn programs

The Phemex premium option is available to all users who register with the platform. They get a 7-day free trial of premium, in which they can execute spot trades on the spot market with zero fees. They also can access hourly withdrawals without any limits.

Furthermore, Phemex has an Earn Crypto program that allows its users to earn up to 10% APY using fixed and flexible saving options.

Conclusion

The platform also lets users practice crypto trading using simulated trading without having to use real funds. This option could be helpful for novice traders who want to try their hand at trading without any risks.

Phemex is growing its userbase and becoming a pioneer in the crypto space.

For more information on the exchange, please check out Phemex’s Official Website.

6 Ways Technology Can Boost Productivity In 2023

Are you looking for ways in which technology can increase productivity in your business? Here’s your answer.

Are you looking for ways in which technology can increase productivity in your business?

High productivity in business is important because it results in greater revenue generation and better customer service. When your staff is productive, they will invest all their efforts into helping your business grow.

Technology can help you improve productivity in your business in many ways. For example, you can automate various repetitive processes, use scheduling software, and install a chatbot to answer customer inquiries. All of this provides you with time to spend on more important things, such as brainstorming marketing strategies.

This article will show you 6 ways in which technology can boost productivity in your business.

1. Use Video Conferencing Software

Video conferencing has risen in popularity ever since the start of the pandemic. And it has brought with it many benefits to businesses. People from different parts of the world can now meet through video calls and strike huge business deals.

As a business, you can now save many expenses. In the past, you needed to pay people to fly in, and pay for their hotel rooms, and conference halls. Video conferencing software relieves you of these expenses. Nowadays, you can hold meetings online and make critical decisions without being in the same room.

Video conferencing software also saves you the time you would have needed to travel to the meeting. Once you prepare the details, you can just hop into the call in a quiet room. Once you’re done, you can get back to doing your other tasks.

2. Use proxies for research

Market research is an unskippable part of any successful business strategy. It helps you learn your target audience’s pain points and desires. You also discover the strengths and weaknesses of your competitors.

Most companies do research manually, and this can be time-consuming. But with proxies, you can collect large amounts of data by scraping millions of websites simultaneously. You can then analyze this data to identify patterns and reach relevant conclusions that can impact your business decisions.

3. Use a scheduling system

A scheduling system helps you plan your days, so you have ample time to interact with employees. You won’t need to worry about overlapping appointments, events, and meetings you have going on. When everyone in the company can see your calendar, they can fix theirs to match your free time if they want to meet.

Scheduling systems also boost teamwork by enabling you to assign tasks to teams with a set of instructions. Apps like Asana allow you to schedule tasks that should be completed by people in your organization.

4. Use Virtual Private Networks

VPNs allow employees to work outside the office securely. This technology boosts employee productivity by leveraging internet resources so employees can collaborate from different locations, such as from home. The result is a faster, more secure network environment where users can share data and communicate safely.

VPNs also allow employees to access sites that may be useful to your company but are region-specific. For example, if one of your employees is working from Asia and one of the sites she wants to access is only available if you’re in the US and Europe, a VPN will do the magic.

5. Outsource work

In a startup, almost everyone will do an extra job they were not hired to do because you are trying to cut the cost of bringing in new employees. But what if that’s holding their productivity back?

By outsourcing work your employees are not qualified to do, you will boost your performance. They can focus on essential tasks that grow your business while outsourcing repetitive tasks. If you don’t understand IT, you can hire an expert to save you the time you would spend messing up trying to figure out how things work.

6. Use chatbots and FAQ pages

Chatbots and FAQ pages can improve your customer service by quickly providing information your customers need. Instead of calling your business, they just visit your site and go through the FAQ pages.

Chatbots can also help your business outside office hours. They can provide answers to queries your customers or prospects may urgently want to know.

7. Clear your mind with mindfulness apps

If you’re having trouble with productivity, chances are you have too much on your mind, and you keep jumping from one thought to another. You’d be surprised to see how much something as simple as meditation can help.

Mindfulness applications have a bunch of useful guided meditations and other mindfulness techniques that will help you in ways no other digital tools can.

Conclusion

Business productivity has many benefits, including employee fulfillment, better customer service, increased employee engagement, and better revenue generation. Technology can help you achieve all these benefits in many ways, so don’t miss out on any of the useful software listed above!

5 Ways Rpa Contributes To Operational Excellence In 2023

Operational excellence (OpEx) is the general doctrine of implementing broad strokes of “excellence” throughout an organization to improve efficiency, sustainability, quality and profitability.

The use of RPA in operational excellence initiatives can help companies increase their operational efficiency by automating mundane and repetitive tasks that are time-consuming and error-prone.

In 2023, 9/10 “top businesses” claimed to have had an ongoing investment in AI. We believe that increased RPA adoption can improve companies’ operational excellence and, by extension, their financial and operational outlooks.

This article explores:

What operational excellence is,

Operational excellence’s five principles,

RPA’s role in operational excellence.

What is operational excellence (OpEx)?

Operational excellence is a general mindset within a company to increase the efficiency and the “excellence” of a company’s processes and outputs.

According to Juran’s Model

Having a clear framework for processes and their standards

Moving company culture towards prioritizing customer experience

Monitoring performance metrics and knowing when to intervene

Allowing for change management to take place seamlessly

Increasing process effectiveness and agility

We believe that RPA can play an important part in each of these five key principles. However, the first principle might not be handled by RPA alone, so it would require integration with process mining.

How does RPA in operational excellence work? 1. Illuminating and enhancing processes

Enterprises use process discovery and process enhancement, subcategories of process mining, to improve processes (38% and 28% respectively).

Oftentimes, companies want to automate processes but lack insight into their inner-workings. Not having a clear view of your as-is processes stops you from realizing OpEx’s first principle.

Process mining tools can act as de-facto x-rays, showing you how your processes function by gathering event logs data and laying out the interconnections. Once processes are transparent, RPA technology can be leveraged to automate those processes that meet the criteria for automation – remember that not all processes are suitable for RPA automation.

Note: Process improvement methodologies can also help improve processes. However, recent BPM trends show that companies increasingly prefer process intelligence tools, such as process mining and task mining over these techniques.

2. Improving customer experience

RPA can be used in customer service to automate the handling of everyday customer requests to provide a more seamless and superior customer experience. For example, RPA and NLP integration allows bots to read through customer complaints to prioritize and sort them for easier accessibility.

In other instances, customer service RPA-enabled chatbots can be leveraged to automate responses to FAQs or simple enquiries, such as getting product and shipping information, which would otherwise have to be handled with reps.

RPA can also extract data from a customer’s purchase history, customer journey, and browser cookies to create profiles for each customer and allow personalization automatically. 80%

3. Monitoring KPIs

RPA bots can monitor processes and workflows to provide managers with transparent KPIs.

For instance, RPAs can partially automate some of the employee onboarding processes, such as:

Job posting

Resume screening

Data extraction from resumes

Reaching out to candidates

Scheduling interviews, and more.

For each task that an RPA bot does, it leaves a digital footprint. The performance can be shown on real-time dashboards to provide the HR department, for instance, of how well they are doing. Also, it can show the number of resumes the bot has successfully screened or the number of interviews the bot has automatically scheduled.

The real-time KPI updates allows managers to remedy inefficiencies as they are observed on the dashboard.

4. Automating change management

A 2023 survey

Listening to employee feedback is a direct way of knowing what isn’t working at your company so you can remedy it.

RPA bots can automate change management to:

Facilitate how employees submit their change requests,

Increase the speed at which they are evaluated,

And improve change implementation.

RPA bots can quickly extract the data employees submit on change request forms, read and understand its content and context, conduct a preliminary assessment to determine if it merits more thought, and send it to the relevant department.

The bots can also automate the scheduling of meetings with the proponent, as well as extract data on the performance of the updated processes.

These RPA benefits in change management increase the speed at which companies handle organizational change. An IBM report shows that 90% of the respondents claimed that intelligent automation – using RPA and other AI tools – enabled them to perform above average in handling organizational change.

5. Improving efficiency and effectiveness

This area is where RPA’s benefits can be viewed most tangibly when it comes getting closer to operational excellence.

RPA can automate up to 70-80% of rules-based tasks in front office and back office. Given that employees spend 10-25% of their time doing repetitive computer tasks, RPA has the potential to:

Automating suitable processes by RPA bots gives your staff more time to focus on value-driven activities such as improving customer service, analyzing financial reports, providing targeted sales pitches, and the like.

For more on RPA

To learn more about how RPA can improve organizations, read:

To get a comprehensive look into RPA, download out RPA whitepaper:

And if you want to invest in RPA technology, we have a data-driven list of RPA vendors prepared.

We will help you through your vendor selection process:

He primarily writes about RPA and process automation, MSPs, Ordinal Inscriptions, IoT, and to jazz it up a bit, sometimes FinTech.

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4 Ways Behavioral Analytics Can Improve Your Business In 2023

Until a decade ago, experts’ experience, education, and instinct were the best tools to understand their customers’ preferences and behaviors. However, all of these could be biased and lead companies to ineffective directions. Today, businesses can make data-driven decisions thanks to behavioral analytics that interpret big data. In this research, we introduce in detail the concept of behavioral analytics and the areas where it is used.

Sales teams want to find answers about who is buying a particular product and why.

Marketers want to understand how their campaigns influence customer behavior.

Financial institution professionals want to know who is making transactions to prevent fraud.

Game/mobile app makers want to understand user experience to improve overall features of the game/platform for the next versions.

What is behavioral analytics?

The performance of behavioral analytics is directly related to the amount of data stored (see Figure 1). It is therefore related to big data and the rapid proliferation of smart devices such as phones, watches, homes, etc. As the actions of individuals can be tracked better thanks to such technologies, companies can better understand their customers and carry out more efficient, tailored marketing and sales activities.

Figure 1: Volume of data.

1. Develop personalization and customized Offers

Other large companies such as Youtube, Netflix, and Spotify are also able to ensure customer satisfaction thanks to their recommendation engines.

The below video provides information about how Netflix implements recommendation engines to provide convenient movie/series experience for their users.

2. Measure success of marketing campaigns

Thanks to behavioral analytics, companies can use detailed behavioral data to determine the success of their campaigns. For example, a cosmetics company would not rely solely on sales figures to understand the success of its new product. It can also rely on consumer responses on online platforms, such as:

3.Improve fraud detection

Fraud costs about $600 billion, or 0.8% of global GDP. That makes it a significant burden on businesses and consumers. Businesses can use behavioral analytics to improve the fraud detection capabilities of their AI/ML models. Thanks to behavioral analytics, ML models can identify individually unique factors such as:

Mouse movements

Typing speed and habits

to confirm the security of a transaction. Such improvement reduces the percentage of successful fraudulent actions.

The following video of AWS further explains how behavioral analytics can be used for fraud prevention.

4. Facilitate better A/B testing

A/B testing is ideal for testing a hypothesis you have developed based on other user data or insights. For instance, if a company cannot decide on the color of the font of a custom mobile app platform, it can test the impact of different colors on customer engagement with an A/B test.

By using behavioral analytics, companies can understand how customer usage behavior changes when a parameter is changed. Do customers spend more time using the app? Do they shop more? etc. It’s worth noting that such testing and analytics are also valuable for game developers, as they can identify the “boring” parts for gamers that should be improved.

Figure 3: Example of use of behavioral analytics on A/B testing

For more information on behavioral nudging, you can check our article Internet of Behaviors.

You can also check our list of analytics platforms.

To find out more about behavioral analytics please do not hesitate to reach us:

Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.

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5 Ways Sap Job Scheduling Optimizes It Operations In 2023

Automation plays an important role in the digitalization of businesses. Enterprise Resource Planning (ERP) systems, including SAP, the largest ERP by sales, are at the center of most enterprises’ businesses and are involved in numerous processes.

However, SAP-based processes are challenging to automate since

companies need to deal with numerous SAP instances in different environments. These SAP instances manage business processes for different countries or business units’ operations.

SAP systems are integrated with many different systems that build on SAP’s capabilities in areas like invoice processing etc.

SAP job scheduling tools help IT teams manage this complexity. They provide an orchestration capability to coordinate SAP and non-SAP jobs across multiple tools and environments.

In this article, 5 ways that SAP job scheduling optimize IT operations are examined with real-world examples.

What are SAP jobs?

SAP jobs are defined as “logical containers for all steps to complete a task”. SAP jobs enable users to treat complex tasks as single units. This means it helps you schedule multiple steps of tasks (Figure1) to complete a job as a single step.

Figure 1: Example of steps to complete a certain job

Any particular scheduling rule such as repetition, that is applied to one job which includes more than one step, also applies to the entire steps. For example, when you schedule a job weekly, it applies to its background job steps as well (Figure 2).

Figure 2: Example for scheduling rules on all job steps

1. Schedule jobs and processes with a single solution

Modern businesses use dozens of platforms, applications, and tools that are integrated into SAP. Coordinating and integrating these platforms is a complex process that demands manual effort.

SAP job scheduling helps organizations schedule and run processes across these numerous tools. As a result, organizations don’t need multiple automation and job scheduler tools specific to each application. With a single SAP job scheduling tool, users can improve process coordination between different tools. It also makes it easy to plan, monitor, and reschedule end-to-end business processes in real-time.

ActiveBatch users can roll out workflows faster using an extensive library of pre-built job steps and variables. It can be easily integrated and connected with business-critical systems such as SAP, Oracle, Microsoft, and so on. With ActiveBatch, you can monitor automation and orchestrate processes efficiently, reducing the time to complete end-to-end processes.

2. Streamline processes with integrations

Using multiple applications and tools in hybrid environments requires well-designed integrations. SAP job scheduling can be integrated using APIs and connectors with any system in the ERP ecosystem. Integrations into the SAP ecosystem connects disparate application and tools, while it helps manage jobs based on SAP and non-SAP.

The company chose SAP job scheduling and leveraged SAP® ERP integrations to orchestrate all phases of its end-to-end business processes. The tool redefined automated tasks, reordered supply chain processes, and eliminated unnecessary duplicates by providing a bridge with streamlined integrations. It enabled chúng tôi to provide real-time information to both customers and suppliers, improving speed and accuracy.

3. Customize jobs with event-driven architecture

SAP job scheduling has an event-driven architecture that enables companies to add customizable pre-conditions in building jobs. When a job is scheduled with event-driven processing, it is triggered when its pre-conditions occur. This feature enables companies to schedule and run processes in real time across applications with event-driven architecture without a need for manual triggering.

Daikin Europe N.V., a subsidiary of air conditioning giant Daikin Industries Ltd. lacked a scheduling tool that can provide an alert and run in synchronization with their SAP processes such as supply chain and logistics. They had 4500 tasks, one-third of which were based on legacy systems. The company required extensive manual processing for supply chain processing, which cost employees 11 hours overnight and delayed the next day’s business processes.

As a solution, Daikin Europe N.V. adopted SAP job scheduling which helped the company to orchestrate their SAP processes across all environments and integrate with all applications and tools that they used. As a result, nightly workflows were shortened to 6 hours, with no delays to the next morning. Thanks to event-driven architecture, the company completed data processing on time and was able to use data in one tool to trigger any other system across all platforms and applications.

4. Improve monitoring and alerting systems

SAP job scheduling can monitor SAP and non-SAP jobs and warn users when errors occur. It works according to the changed conditions or deviations from the Service Level Agreements (SLAs) and warns the users. When users are notified about the errors, they can react in real time.

French Connection, a UK-based fashion retailer, relied on a manual and error-prone monitoring system for data collection and reporting process. When an error occurred, it caused significant delays in the business processes. French Connection switched to SAP job scheduling and integrated it with their SAP ERP system. When something happened during the data collection and reporting process and the SAP job scheduling alerted with an email about it.

5. Save resources by eliminating additional license fees

In an organization, license fees can sometimes be overwhelming. IT teams often need a way to optimize their resources by removing unnecessary tools and licenses. The SAP job scheduling tool provides a solution to this problem. Without the need for a third-party connector, SAP job scheduling can connect with SAP, ERP, etc. systems. Since a third-party connector is removed from the system, IT teams save resources by eliminating license fees.

Esprit, an international fashion brand based in Germany, migrated to the SAP job scheduling tool and optimized the processes by saving on costs. The company removed third-party connector’s license fees as their legacy tool required a third-party connector to connect with SAP, ERP, etc.