Page 27 - The Insurance Times January 2025

Improved Operational Efficiency 3. Predictive Analytics and Scenario Modeling: Swiss Re's
Enhanced Fraud Detection AI used predictive analytics to simulate risks, aiding
managers in proactive risk mitigation decisions.
Cost Savings
4. Early Warning Systems: Swiss Re's AI-driven early
Enhanced Customer Experience
warning systems alert risk managers to critical changes,
enabling swift insurance adjustments.
By leveraging Generative AI to innovate claims management
practices, Anthem Inc. demonstrates leadership in harness- 5. Continuous Improvement and Adaptation: Swiss Re
ing technology to drive operational excellence and deliver refined AI models with new data, improving algorithms
and predictive accuracy for adaptive risk monitoring.
value to its stakeholders in the healthcare insurance market.

This case study illustrates how Anthem Inc. has successfully Impact:
implemented Generative AI to revolutionize claims manage- Swiss Re's adoption of Generative AI for real-time risk moni-
ment, significantly improving efficiency, accuracy, and cost- toring has yielded significant benefits in enhancing risk man-
effectiveness in processing health insurance claims in the agement capabilities and operational efficiencies:
United States. Proactive Risk Management
Improved Decision-making
Reference:
Enhanced Customer Value
https://www.lyzr.ai/generative-ai-insurance/
Competitive Advantage
Swiss Re: Using AI for Real-time Risk Through the strategic deployment of Generative AI tech-
Monitoring nologies, Swiss Re demonstrates its commitment to harness-
Swiss Re leveraged Generative AI for real-time risk monitor- ing cutting-edge technologies to anticipate, mitigate, and
manage risks effectively in the fast-paced and complex land-
ing to address challenges in timely insights and proactive in-
terventions in commercial insurance. Swiss Re's Parametric scape of commercial insurance.
Flight Delay Compensation is built on an AI model that can
This case study illustrates how Swiss Re has successfully le-
predict flight delays, uses more than 200 million historical data
veraged Generative AI for real-time risk monitoring, en-
points, and the machine-learning capability of the pricing abling proactive risk management and delivering enhanced
engine allows for rate adjustments, based on data from over value to commercial property insurance clients globally.
90,000 flights per day. The third avenue is, claims that it can
help with computer vision that can reduce car accident fraud Reference:
and detect driving style. Taking advantage of the confluence
of edge computing and AI, an Italian startup has been granted https://www.reinsurancene.ws/swiss-re-reimagines-the-
a patent to record the front visual panorama of a moving uses-of-ai-for-the-re-insurance-industry/
vehicle, identify the driver's driving style, and certify the ac-
cident by recording its dynamics. Challenges and Considerations
Despite the transformative potential of Generative AI in
Implementation of Generative AI: insurance, several challenges and considerations must be
addressed to maximize its benefits:
Swiss Re implemented advanced Generative AI technologies
Ethical Implications: The use of AI in insurance raises
to monitor and analyze real-time data feeds from a variety
ethical concerns regarding data privacy, algorithmic
of sources, including IoT devices, environmental sensors, and
financial markets. Here's how Swiss Re leveraged Genera- bias, and the fair treatment of policyholders.
tive AI to enhance real-time risk monitoring: Regulatory Challenges: Insurers must navigate regu-
1. Data Integration and Analysis: Swiss Re integrated IoT, latory frameworks that govern the use of AI in under-
environmental, geological, and financial data for real- writing, claims processing, and customer interactions.
time risk and vulnerability assessment. Integration and Adoption: Integrating AI technologies
2. Machine Learning Algorithms: Swiss Re's machine into existing IT infrastructures and workflows requires
learning algorithms analyze streaming data to detect significant investment in training, infrastructure up-
anomalies, identify risks, and predict losses. grades, and change management initiatives.

24 January 2025 The Insurance Times