Page 18 - Insurance Times February 2022

Consolation Prize Winner : Technical Paper Writing Contest 2020 Cover Story

APPLICATION OF

ARTIFICIAL

INTELLIGENCE IN THE

GENERAL INSURANCE

SECTOR

ABSTRACT
The Insurance industry today is on the brink of a massive revolution as we are witnessing the infusion of innovation and
insurance (Insurtech). Data is a force that drives this industry and managing this is where the technology plays a major
and efficient role. The role of AI is limitless and is transforming the way insurance business was done. AI helps to provide
a business model that aligns with the customers. It has been predicted by the insurance experts that 'next insurance
leaders will use Bots, not Brokers and AI not Actuaries'. We evaluate various methodologies in practice and what the
future hold for the same. Looking and analysing various present- day insurtech companies and the ideas behind their
workings. How the insurance experts are embracing the changes in the state of not getting left behind as the industry
transforms. On how the on-going businesses are coming up with plans to create a new customer centric architecture
with the AI support. Finally, we will evaluate the changes that are accelerating in several operation lines; underwriting,
servicing, renewals, claims etc. with all the possible things that might go wrong with the use of AI.

Introduction Insurance was first practised by the Chinese and Babylonian
traders in the 3rd and 2nd millennia BC, respectively. Later in
"You never change things by fighting the existing
1680, Edward Lloyd opened a coffee house, which became the
reality. To change something, build a new model
forum for those within the shipping industry who wished to
that makes the existing model obsolete." insure their cargoes and ships, including those willing to
- Buckminster Fuller underwrite such ventures leading to the establishment of the
insurance market which we all know as the Lloyd's of London.
About the author
In the early years, a basic system for funding voyages to the
Ms. Gaurangi Bhatnagar Ms. Prachi Dhir
New World was established. The merchants and companies,
National Insurance Academy at first, would seek funding from venture capitalists. The
PUNE
venture capitalists would then help find people who wanted
18 The Insurance Times, February 2022