Page 19 - Insurance Times February 2022

to be colonists and would purchase provisions for the voyage. has drawn more customers to the domain to check for the
The venture capitalists, in exchange, were promised some of best offers in the market.
the returns from the goods the colonists would produce.
With this article we aim to bring forth various such digital

After the voyage was secured by venture capitalists, the developments, mainly focusing on the application of Artificial
Intelligence brought about in the General Insurance Sector
merchants and ship owners would hand over a copy of the
which has facilitated the functioning of the service providers
ship's cargo at Lloyd's, so that the investors and underwriters
who gathered there could read it. The people interested in to a great extent, be it, prudent underwriting, accurately
pricing a policy or timely payment of claims.
taking the risk for a set premium signed at the bottom of the
manifest beneath the figure indicating the share of the cargo Artificial Intelligence in the Insurance
for which they were taking responsibility (hence,
underwriting). With this, a single voyage had multiple Sector
underwriters who tried to spread their own risk by taking "Artificial intelligence (AI) refers to the simulation of human
shares in several different voyages. intelligence in machines that are programmed to replicate
human intelligence and their actions. The term can also be
Since then insurance has come a long way and has become applied to any machine that exhibits traits associated with a
far more sophisticated, specialized and customer friendly. human mind such as learning and problem-solving."
Over the past few decades, a gradual shift into
digitalization has taken place, thus, eliminating tangibility. The insurance industry has always dealt in data, but it hasn't
Businesses have adapted to this prevalent culture and have always been able to put that data to optimal use, until now.
consciously brought about changes to their functioning With the rise of artificial intelligence, which analyses and
structure. The Insurance sector today, contributes 2.9% learns from massive sets of digital information culled from
towards the GDP of India as of 2019 which means a public and private sources, insurers are embracing the
benefaction of $629.7 towards the Indian economy, making technology's many facets - from machine learning and natural
it an essential player. language processing to robotic process automation and
audio/video analysis - to provide better products.
Technology has played a crucial role in the growth of the
insurance sector from the concept of roomy offices providing Customers, too, are benefitting - from comparative shopping
services via direct calls, proposal forms being filled manually, and lightning-quick claims processing; 24/7 service and
to the digital results of a series of clicks. It is this aspect that improved decision management.

The Insurance Times, February 2022 19