Artificial intelligence – it’s everywhere in our lives. From the news, music and movies “suggested” for us to the navigation systems that get us through traffic, we use it every day.
It’s been transforming insurance for some time
AI started out in the “back office”, but it’s coming to the forefront, and consumers are ready for it. They want insurance to be as personalized and convenient as all the other interactions they have each day.
A recent McKinsey report states that AI will take insurance from a current state of “detect and repair” to “predict and prevent”, transforming every aspect of the industry in the process.
It’s a Game-Changer For Every Player
There’s far too much data for humans to make sense of. But it’s just what AI needs to “get to know” each of us and provide automated, but customized, efficient experiences.
AI will change the broker-consumer relationship – quite likely for the better. Brokers can leverage AI to help Brokers really know their clients (even the ones they speak to or see rarely) and prospects by spending more time on meaningful interactions and less time on paperwork that can be automated effectively with AI.
As AI grows, Brokers may be able to make use of new chatbots that will feel like a real person, creating personal connections and taking care of routine tasks.
AI offers the opportunity for innumerable operational efficiencies.
Rather than a manual, in-person inspection, AI may soon inspect and pay out a claim. Insurers are now relying less on tables and trends and assessing real risk by using drones and apps to assess damage and streamline claims. Thanks to apps that predict which homes are at risk from storm damage or flooding, and telematics to tie actual driving habits to risk, AI can keep track of all claims data, making it faster and easier to spot anomalies.
Thanks to AI, there will be truly personalized products for consumers, with pricing based on how safe or risky each person’s actual behavior is, rather than insurers using general conclusions.
Perhaps the most important is that claims will be less time-consuming and more convenient – which is critical in times of a distress. For example, an app on your smartphone could send pictures of damage to a vehicle, or a drone may inspect property damage.
There’s a new space for vendors in creating AI software especially for the industry.
That includes one of CSIO’s newest members, Element AI.
Recently named one of the fastest growing Canadian tech companies, Element AI was founded in 2016 by entrepreneur Jean-François Gagné and world-renowned deep learning pioneer Yoshua Bengio. Its vision is to partner with academic and business communities to turn collaborative research into products that solve real world problems.
Charles Dugas, Head of Insurance of Element AI will be the keynote speaker at CSIO’s 2019 Members’ Meeting on April 16 looking at how AI is reshaping the insurance landscape and how organizations can build future systems based on their current needs.
Wider Implications for Insurance Applications
In an industry with privacy issues and regulations, it’s important to consider the implications of using this data for insurance purposes. What’s an acceptable use of data? How do we protect customers from price or coverage discrimination based on the data the Internet of Things (IoT) provides to us?
Getting the most out of AI for the industry and consumers is going to depend on addressing and resolving issues like this as AI’s influence grows.
Clearly the pace of change, personalization, product categories and pricing are all going to increase rapidly. Relationships will change, but with the added bonus of depth and knowledge in our interactions. With the exponential increase in collected data across devices and platforms, collaboration and coordination among stakeholders is essential to evolve insurance and utilize the newest tools and technology to serve the consumer.