The insurance industry is known for being a bit conservative. Despite the benefits that AI could deliver streamlining insurance processes, there is understandable wariness towards AI's cost and effectiveness. These industry insiders have weighed all factors and gave us their vision for the future of AI in insurance. Here's what they said:
1. Chad Hawkinson, Senior Vice President, Data & Analytics at Vertafore
“The future of AI in insurance is bright. The insurance industry has a ton of data, much of which is locked up in paper-based or PDF-based documents, or in multiple disparate systems across carriers. As we unlock this data using AI, we will be able to leverage AI to then build incredible, unforeseen insights in the insurance world, which will open up new business models, new ways of servicing customers and new ways to improve operations. I’m very excited to help drive the future of AI within insurance through our work at Vertafore.”
2. Amir Cohen, co-founder and CTO of Planck
“As insurance is a statistics-based business, AI will eventually completely remove any guesswork and make the insurance processes more accurate and scientific.”
3. Jeremy Jawish, CEO & co-founder of Shift Technology
“It’s important to remember that we’re at the very beginning of AI’s impact on the insurance industry. As more and more success comes from the initial forays into using AI to create new opportunities, greater adoption is the natural outcome. Insurers will have a better understanding of which business processes lend themselves to AI and which may be better suited to different approaches, allowing them focus their energies on those AI projects that will deliver the greatest business benefit.”
4. Christian Wiens, CEO of Getsafe
“We predict artificial intelligence will fundamentally change four areas in particular: Firstly, it will accelerate numerous insurance processes such as the conclusion of policies or the settlement of claims. This will make insurance products more flexible and customer-friendly.
Secondly, artificial intelligence will enable insurance fraud to be detected far quicker and risks to be assessed more accurately. As a result, insurance companies will be able to refine their customers' risk profiles and reduce their loss ratios. “Good”, trustworthy customers could then benefit from lower premiums and very fast service.
Third, AI can be used to create personalized products. If the insurer can better assess the customer's needs based on historical or behavioural data, it is in a position to put together tailor-made insurance packages. And last but not least, AI, in combination with sensors and intelligent devices, helps with damage prevention. In manufacturing, machines can already be repaired before expensive downtime occurs in production. Similar concepts are also conceivable in the home, in the car or indeed healthcare.”
5. Tanguy Touffut, co-founder and CEO of Descartes Underwriting
“Descartes Underwriting strongly believes that the impact of AI will be most significant in the areas with frequent human interaction. The future of insurance will hold AI-powered personal assistants that will enable insurers to meet clients’ needs better, ultimately improving customer satisfaction through personalized products. Furthermore, AI will boost productivity, making the end-to-end process from underwriting to claim management much more effective and precise, ensuring better claims management.
However, this is just a small incremental part of what the future will hold. AI can leverage the integration of the entire insurance value chain, permitting not only better risk assessment, pricing, and claim management, but also help prevent risks.”
6. Scott McConnell, President of Insurance for NTT DATA Services
“In the short-term, carriers need to fix their data issue, which will allow AI to drive more seamless straight-through processing. Data is central to any transformation initiative and the key to unlocking business value.
Once data is mastered, AI has many more exciting applications in insurance in the long term. For example, when you combine AI with IoT, property & casualty carriers can improve their risk management.”
7. Ji Li, Director of Data Science at CLARA analytics
“Faster, customized claims settlements while decreasing fraud. These two areas are among the best “low hanging fruit” opportunities for AI in insurance. The ability to analyze numerous data points in seconds opens ways to assess and predict that humans simply cannot achieve. This does not mean that people are no longer needed. They still possess higher-level cognitive skills that machines are not equipped to gain. The capacity to look for the intangibles, to make important judgment calls, to see and interpret what lies beyond the data — these are human traits that cannot be replicated by AI.”
8. Ryan McMahon, Vice President of Insurance at Cambridge Mobile Telematics
“The future is in the claims process, with the ability to automatically process and settle claims. Today, there are a number of key elements that extend the time between crash and settlement, which include interviews, police reports, witness statements and photos. All of these processes can either be automated or augmented. Insurance is about putting things back in order, which AI does quickly, accurately, and efficiently.
In the future, if you are involved in a car crash, the entire process moves
from reactive to proactive: l include:
– When a crash occurs, emergency services are automatically alerted
– Your insurance company will automatically verify coverage
– A rideshare or rental service will know that your car isn’t driveable
and will dispatch a car to your location
– Instead of discussing via a phone call, details about the crash will
be automatically available for you to transmit to your insurer
– You can take photos, that when transmitted, will automatically be
analyzed and show your preferred repair shop what parts needs to be ordered
– Your vehicle will be automatically scheduled for service, and you will
quickly get your car back without extensive back and forth with your
9. Saty Mahajan, co-founder & CTO of Bento
“The future of AI in insurance is holistic integration of AI across all aspects of the business. There are thousands of different problems in insurance that AI is uniquely suited to help solve. The companies that deploy AI in a meaningful way to reduce costs and improve experience will have a competitive advantage and will be able to address customer needs better.”
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