Page 18 - Insurance Times March 2021

First Prize Winner : Technical Paper Writing Contest 2020 Cover Story

HOW ARTIFICIAL

INTELLIGENCE IS

PROGRESSING IN

INDIAN INSURANCE

INDUSTRY

T echnology has led to many positive changes around been an area of extensive research since the term was

us and insurance industry is not staying behind in
coined in 1956, it has recently only led to large-scale
making the most of the technology to improve their
and tasks. The works in the late fifties and early sixties were
functioning and services to customers. Traditionally, deployment of intelligent applications for different domains
the insurance industry's focus has been around the policy in the direction of development of general techniques,
and product but there's now a shift in the trend. The which could be applied in several domains. The results were
insurers are more and more leaning towards becoming a not very encouraging and it led to the first winter of the
more customer-centric organizations and Artificial field, which started in the late sixties and continued till the
Intelligence (AI) has been at the forefront of this mission. late seventies.
Artificial Intelligence (AI) is concerned with understanding
the nature of human intelligence and designing intelligent Using AI in insurance has enhanced customer experience by
artifacts which can perform the tasks which, when understanding customer behaviour, streamlining the claim
performed by humans, are said to require intelligence. Any process, improving underwriting and preventing fraud.
major advancement in technology brings with it a range of Embracing AI will help the insurance industry in effective
opportunities and challenges. customer engagement and in the long run a deeper
penetration of the market. The present sharp rise in the
While AI is likely to bring substantial economic growth, it is number of AI applications is due to several factors. Firstly,
being predicted that a number of jobs would be lost due to during the last few decades, the computational power and
the automation. Therefore, it is necessary to put required storage capacity of computers has been increasing while
policy and infrastructure in place. Though the field of AI has the cost has been decreasing due to the advances in the
electronics used in complex digital circuits.
About the author
This has made computing more and more affordable. One
Ms. Bhawna Dahiya of the main requirements for application of AI is the
Asst. Vice President availability of high computing power, large memory and
IDFC Bank storage, which have now become affordable. The cloud

18 The Insurance Times, March 2021