Page 20 - Insurance Times February 2022

AI supports the insurance industry in putting their enormous The pace of change too, will accelerate, as brokers,
amounts of data to optimal use. Insurers are using artificial consumers, financial intermediaries, insurers, and suppliers
intelligence to craft individualized policies, automate time- become more adept at using advanced technologies to
consuming back-end processes and provide estimates with improve decision making and productivity, lower costs, and
greater accuracy to customers all over the world. optimizing the customer experience.

As per a survey conducted by Accenture, as on today, 74% of Artificial Intelligence can deliver on industry expectations
consumers would prefer interacting with modern technology through machine learning and deep learning paving way for
and appreciating the computer-generated system of more development in the industry.
insurance advice.
As AI becomes more deeply integrated within the industry,
Companies who have been quick enough to adopt carriers must position themselves to respond to the ever-
automation of some aspects of their claims process can changing business landscape. Insurance executives must
experience significant descent in processing time and cost, understand the factors contributing to this change and the
and a big surge in the quality of the service. manner in which AI will reshape claims, distribution, and
underwriting and pricing so as to build the skills, embrace the
For E.g.: Allstate Business Insurance has recently designed emergent technologies, and develop the culture and
ABI, an AI-based virtual assistant application, in partnership perspective required to be successful players in the insurance
with EIS, to furnish Allstate insurance agents seeking industry of the future.
information on ABI's commercial insurance products.
Importance of AI
The perfect blend of Machine Learning, IoT sensors and Today the global scenario is such that AI will add $13 trillion
advanced analytics facilitates insurers in identifying and to the global economy over the next decade and China has
approaching their prospective clients, studying their real-time emerged as number one, overtaking USA.
needs, developing insight from their profile on risk magnitude,
and ultimately creating custom-made solutions. AI in the Indian Insurance Industry is a must as are witnessing
underwriting losses, growing competition, increasing
In 2017, AI has shown its substance in various business verticals expectations of customers, increased costs- mainly sales/
by rapidly creating controlled, digitally enhanced automated service, increase court cases, need to cover all parts of the
environments for maximum productivity. country, improve productivity per employee, increasing
insurance frauds etc. Today, the most valuable asset is not
Apparently, Insurance companies, especially, have lots to gain machinery or stock, it is data.
from investing in AI-enabled technology which will not only
automate the scheduling of executive-level tasks but can also The components of AI that are being used for
enrich service quality by helping agents make right decisions improved efficiency, are:
and irrefutable judgments.
Y Machine Learning
Scope of AI Y Speech Recognition
Y Recommendation System
The insurance industry is on the edge of a tech-driven shift
from its current state of "detect and repair" to "predict and Y Image & Video recognition
prevent," altering every aspect of the industry in the process. Y Predictive Modelling

Y Natural Language Generation
With the new wave of deep learning techniques, such as
convolutional neural networks, artificial intelligence (AI) has
AI is applicable to various business applications
the potential to live up to its promise of mimicking the
perception, reasoning, learning, and problem solving of the like:
human mind. Y Prudent Underwriting

20 The Insurance Times, February 2022