Having first focused on pet insurance, the seven-year-old firm has since expanded into parcel, fire, home and health products. It also insures digital assets from hacking and malware and theft.

Predictive models are a tool to address a business problem, not a solution.

Jeff Diem founded the insurtech to fix a problem he encountered as a residential damage contracting estimator: wildly divergent estimates of damage repair costs from contractors and insurance companies.

It can be hard to explain rationally why a digital insurance solution is trusted or not by customers, according to Burr, who is CEO of the iptiQ unit of the insurance company.

Digital Insurance spoke with Kieran Stack, head of delivery excellence and insurance operations at Aon.

US lawmakers on Thursday questioned how new rules for artificial intelligence can protect against the technology's risks without reinforcing the early advantages enjoyed by tech giants such as Microsoft and Google.

Issues behind insurers developing their own software or deciding to purchase an external solution and the pitfalls of both paths.