Page 29 - Insurance Times March 2021

the public money reaches the public. As a policy,
Government should also work on making people aware about
this technology.

The Future of AI in Insurance:

While challenges appear to dismay the present market,
insurers still like to view the potential of AI in the Insurance
industry with optimistic eyes. To reap full range of benefits,
insurance companies need to devise an enterprise-level
strategy to implement AI in such a way that it offers more
than just customer experience. When it comes to image
recognition, the overall damage analysis, cost estimation
and claim settlement would be carried out by bots that scan
through pictures and videos. This way, with time, companies globalization, no country can isolate itself from the impact
can rely completely on image recognition technology for first of the advances in technology.
level claim automation and subsequently, settle claims or However, the benefits can be maximized and losses can be
resolve fraud detection in insurance automatically.
minimized by putting necessary infrastructure and policy in
place. Though several countries have decided their strategy
AI has the potential to transform the insurance experience
for AI, India has not yet formulated its strategy. Use of
for customers from frustrating and bureaucratic to artificial intelligence and analytics will significantly improve
something fast, on-demand, and more affordable. Tailor-
customer experience. A shift from push products (traditional
made insurance products will attract more customers at plans) to pull products (pure protection) driven by
fairer prices. If insurers apply AI tech to the mountain of awareness among the internet population is expected. The
data at their disposal, we will soon start to see more flexible industry will see more byte-sized products distributed
insurance such as on-demand pay-as-you-go insurance, and through technology advancement.
premiums that automatically adjust in response to accidents,
customer health, etc.
To get ahead, insurers are using advanced analytics,
machine learning and other AI-driven tools to compete with
We will see insurance become more personalized, because
insurers using AI tech will be able to understand better what agile new players and elevate the customer experience.
their customers need. Insurers will be able to realize cost According to a study by PwC, more than 80 percent of
insurance CEOs said AI was already a part of their business
savings by speeding up workflows. They will also discover
new revenue streams as AI-driven analysis opens up new model or would be within the next three years.
business and cross-selling opportunities. Most importantly, Bibliography:
the AI solutions described above can make it easier for 1. https://marutitech.com/artificial-intelligence-in-
customers to interact with insurance companies. This could insurance/
result in people being more likely to purchase insurance.
2. https://www.businesstoday.in/magazine/money-today/
Artificial Intelligence (AI) is likely to transform the way we cover-story/your-money-in-2020/story/392570.html
live and work. Due to its high potential, its adoption is being 3. https://www.outlookindia.com/outlookmoney/
treated as the fourth industrial revolution. As with any major insurance/role-of-ai-in-the-indian-insurance-industry-
advancement in technology, it brings with it a spectrum of and-its-potential-3532
opportunities as well as challenges. On one hand, several 4. https://www.pwc.in/assets/pdfs/consulting/financial-
applications have been developed or under development services/competing-in-a-new-age-of-insurance.pdf, June
with potential to improve the quality of life significantly. As 2019
per a study, it is expected to double the annual economic
growth rate of 12 developed countries by 2035. On the other 5. https://www.capgemini.com/service/cognitive-
document-processing-services-for-insurance/
hand, there is a possibility of loss of jobs. As per the available
reports, the loss of jobs during the next 10-20 years is 6. https://www.livemint.com/mint-lounge/features/how-
estimated to be 47% in the US, 35% in the UK, 49% in Japan, artificial-intelligence-is-progressing-in-mental-
40% in Australia, and 54% in the EU. In the era of healthcare-

The Insurance Times, March 2021 29