As insurers invest time and money on a wide-range of disruptive technologies to incorporate into their organizations, artificial intelligence remains the one constant. Industry carriers are increasingly adopting machine learning tools—both through internal innovation labs and insurtech partnerships—to help settle claims, communicate with policyholders and underwrite risk. Following is a list of the top 10 AI-themed stories on Digital Insurance this year.
Liberty Mutual embraces AI, blockchain
Liberty Mutual’s VP of IT business operations explains how emerging technologies equip carriers with the ability to have customer experiences comparable to that of Amazon and Google.
Excerpt: "Insurers’ continued adoption of sophisticated artificial intelligence technologies and natural language processing will result in making relationships with customers more personal. According to the executive, AI implementation can be as simple as Netflix suggesting new shows based on data sets to IBM Watson making complex decisions for businesses. An example of Liberty Mutual’s efforts with AI is its partnership with Amazon on its Echo device, which it leverages to teach consumers about core products, how to file claims digitally and install a smoke detector.”
Hamilton, AIG add intelligence to underwriting with Attune
Insurers detail how the big data-driven underwriting platform helps sell small-business insurance more efficiently.
Excerpt: “For small-commercial business in particular, there’s been this tension between effective underwriting and ease of doing business. The traditional view is that to do better underwriting, you have to ask more questions, validate more information, and do more back and forth. Attune says that is a false choice.”
Telematics pioneer Metromile looks to lead in AI as well
Pay-per-mile insurer details the development of its new smart claims assistant "AVA", which can verify claims and get customers’ cars into a repair queue faster.
Excerpt: “AVA has been under development from a programming perspective for about three years. Metromile has added significant capabilities, including routing cars to a specific repair shop, renting a loaner vehicle and making claims payments automatically, without customers having to get involved.”
How artificial intelligence is transforming insurance
AI is quickly giving insurance companies new ways to engage with their customers, process claims and adjust risk.
Excerpt: “Already, AI is being employed to streamline claims, answer basic customer queries and offer straightforward advice about complex products to customers in a codified and consistent manner. The underpinning technology that makes AI possible includes automated data capture and recognition, robotic process automation and cognitive robotics.”
Insurers adopt AI to keep up with customer demands
Celent study finds the biggest driver behind insurers’ adoption of AI and robotics is demand from policyholders.
Excerpt: “There is a harmony between consumers’ and insurers’ growing adoption of new machine-driven interaction tools. However, these tools create business challenges that insurers need to anticipate and address before investing in smart technologies.”
Executivesfrom Liberty Mutual, Swiss Re and TrueMotion discuss distracted driving, cognitive computing and digital transformation in insurance.
Excerpt: "Insurance carriers will encounter a series of challenges when implementing robotics and cognitive computing across their businesses. For one, carriers are required to integrate core systems. Cognitive engines also do not live in isolated environments, meaning servers have to be able to communicate with one another.”
Company executive Andy Breen discusses how to leverage AI to bolster distribution and underwriting efforts.
Excerpt: “Getting from rules-based underwriting technology to truly dynamic machine learning is not an easy process. However, the technology has made great advancements in the past few years, fueled by the increasing number of startup companies putting time and effort into the technology. Yet insurers should cast a wide net when looking for partners.”
AI's ability to process big data will shake up insurance
Tech expert Vivek Wadhwa hints the entire process of computing risks is about to be disrupted.
Excerpt: "If you look at the way risk computations are done, they are based on limited historic data. Now we have a billion times more data than we ever had and no human can possibly comprehend it. But AI can."
The two technologies account for nearly half of global insurance tech investment, up from 10% in 2015, according to an Accenture report. Excerpt: "AI is just as much a value proposition for established insurers as it is for the brash insurtechs. Within large multi-faceted insurance operations, AI will take many forms, versus a broad, all-encompassing ‘artificial intelligence’ implementation. There is natural language processing, there are virtual personal assistants, there are recommendation systems or decisioning systems, there is machine learning, and so on. So an AI implementation in insurance needs to be a specific approach that meets the requirements of the process at hand.
Underwriting procedures are being handled in entirely new ways thanks to AI, impacting everything from data gathering to data analysis.
Excerpt: “Even on complicated policies and claims, artificial intelligence is making great strides. Standardized actuarial models have always translated well into algorithms, but specialty products, which are more complicated, also benefit from AI at the underwriting level with a little bit of work.”