Artificial intelligence (AI) is the term that seems destined to be one of the phrases that will define the coming year.
AI is not new, but as driverless cars, robotic manufacturing and Internet chatbots have become commonplace concepts, if not actual partners in everyday life, it is becoming clear how important AI will be to the workforce of the future.
Like a lot of emerging concepts, AI can mean whatever you want it to mean. It is a term that encompasses a wide range of capabilities and industries. For the insurtech world, it can mean using data to assess risk and price products. “The view that it can have a near-term impact is starting to pick up,” said John Cusano, senior managing director of global insurance at Accenture. “The low-hanging fruit is on the service side but they are quickly moving to underwriting,”
Accenture polled insurance executives and found that almost 80 percent of those they asked said AI would revolutionize insurance. Steven Watson, Accenture’s insurtech lead made this prediction on the company’s insurance blog:
“For traditional insurers who can successfully navigate this evolutionary process, there will clearly be considerable time and cost savings: with more internal processes and customer interactions being automated, people can be freed up to work on higher-value tasks, like offering a better quality of service to those customers who really need a human touch. AI will also help insurers build up a deeper understanding of people and risks – increasingly in near-real time – and start unlocking trapped value in data. But, perhaps most importantly, AI will help to create new products and new customer experiences.”
Bottom line: AI can help insurtech in key ways that include improving operations, digitizing interactions, and exploiting new data sources and data science that will change how products are serviced and sold.