By Haveesha Ryali |
November 29, 2018
Artificial Intelligence (AI) has transformed industries through its evolved predictive capabilities and superior decision making. Whether we talk about retail, hospitality or healthcare, AI has driven exponential growth in each industry. By leveraging app-based AI and machine learning technologies, businesses can be enabled to interpret situations, adapt to changing scenarios and predict outcomes in real-time with nearly no human intervention. This will have a plethora of uses in various industries – including insurance.
AI and the Insurance Industry
Today, the insurance industry is at the cusp of a big paradigm shift. While most sectors are making a relatively seamless shift to AI-driven processes, insurance is struggling due to its unstable nature and high associated risk.
Some of the greatest concerns in the insurance sector today include slow economic growth, limited technological innovations, need for regulations and subdued premium rates among others. Intense market competition is also a big challenge facing insurance giants today. With new InsurTech entrants constantly emerging in the market, traditional insurers need to integrate AI and technology to not get left behind.
According to a leading report, AI is set to trigger a 10 – 40% increase in labor productivity in eleven western industrialized countries and Japan. These countries are set to double in economic growth by 2035, according to the projected study. While this seems like a tall order, there’s no denying the positive effects on growth that come with AI. The insurance industry is on track to reap these benefits too. In fact, AI can and is being applied to many facets of insurance, namely:
Integrating AI in Insurance Seamlessly – Identifying Challenges and Bridging the Gap
While there are abundant opportunities to leverage AI in insurance, there are some real-world challenges that make the integration rocky. Some of these concerns along with how insurance companies can tackle them are listed below:
How can OSG help?
Illuminate, OSG’s bespoke behavioral and cognitive analytics platform can help you manage business risk every step of the way. Powered by Dynamo, our AI-driven big data analytics platform, Illuminate can help you analyze your customers’ behavior and choice patterns to deliver superior engagement, lower risk, lower claim and increase engagement exponentially. By identifying sources of fraud and detecting noise to signal ratio, Illuminate can lower your costs, thereby delivering superior outcomes.
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