Artificial Intelligence (AI) to Change the Future of Insurance
Consumer expectations are evolving, and new technologies are emerging. One of the most disruptive forces in the industry is Artificial intelligence (AI). AI offers insurers the ability to automate processes, improve customer engagement, and drive down costs.
In the future, AI will become even more important to the insurance industry as insurers seek to gain a competitive edge. The most successful insurers will be those that embrace AI and use it to transformative effect.
How AI Relates to Insurance
With the new wave of deep learning techniques, such as artificial intelligence (AI), the potential to live up to its promise of mimicking the perception, reasoning, learning, and problem solving of the human mind.
As AI becomes more deeply integrated in the industry, carriers must position themselves to respond to the changing business landscape. The pace of change will also accelerate as brokers, consumers, financial intermediaries, insurers, and suppliers become more adept at using advanced technologies to enhance decision making and productivity, lower costs, and optimize the customer experience.
Four AI-Related Trends Shaping Insurance
The increased emphasis on digital technologies along with a greater willingness to embrace change will put organizations in a better position to incorporate AI into their operations. These four core technology trends will reshape the insurance industry over the next decade.
Explosion of data - The future is here, and it's even more sensor-filled. From cars to our clothing items - we are surrounded by technology that knows exactly what you want. The coming years will see an increase in data created from these devices which carriers can use for a more personalized experience as well as real time service delivery--allowing customers even greater convenience than ever before
Increased prevalence of physical robotics - The field of robotics has seen many exciting achievements recently, and this innovation will continue to change how humans interact with the world around them. By 2025, 3-D-printed buildings will be common, and carriers will need to assess how this development changes risk assessments.
Open-source and data ecosystems - As data becomes ubiquitous, open-source protocols will emerge to ensure data can be shared and used across industries. Various public and private entities will come together to create ecosystems to share data for multiple use cases under a common regulatory and cybersecurity framework.
Cognitive technologies - Convolutional neural networks and other deep learning technologies currently used primarily for image, voice, and unstructured text processing will evolve to be applied in a wide variety of applications.
The Next Wave of Data Coming
Experts estimate there will be up to one trillion connected devices by 2025. The resulting avalanche of new data created by these devices will allow carriers to understand their clients more deeply, resulting in new product categories, more personalized pricing, and increasingly real-time service delivery.
Humans have always had to deal with risks. But in recent years, we appear to be entering a particularly intense period of turbulence. The combination climate change and technological disruptions has led us into an era where disease are also becoming more prominent while aging populations only add onto this problem - creating what some might call "the perfect storm".
The Future of Insurance
The future of insurance is looking bright, with AI and its related technologies having a seismic impact on all aspects from distribution to underwriting. Advanced tools are already being used by companies in the industry for pricing their policies as well as purchasing them.
Insurance carriers that utilize cutting edge technologies and harness the power of artificial intelligence will be able to offer their customers a personalized experience unlike any other.
