4 Ways Artificial Intelligence Will Revolutionize Insurance
Back in 2017, Elon Musk said via Twitter that “A.I. will be the best or worst thing ever for humanity.” While in 2017, A.I. or Artificial Intelligence was still an abstract concept, with every passing day it is becoming more of a reality. Looking ahead, the insurance industry must start to come to grips with the seismic changes that AI will bring to the way it does business.
For example, the education system is already having to begin to grapple with the profound changes platforms such as ChatGPT, and its ability to write essays, poems, articles in minutes. While the NYC education system already has banned the use of ChatGPT for work, which may almost be an impossible task, there is no doubt that the rise of AI has broad implications not just for the education system and we educate our children in the future, but also how we will work and do business.
As such, Agency Checklists believes that AI will be the real disruptor of the insurance industry over the next decade. If predictions hold true, the ability to quote and tailor pricing in seconds based on an individual’s unique circumstances will upend all the old ways of selling insurance. It will also affect the many processes that underlie the insurance industry from actuarial to claims handling.
So with these ideas in mind, Agency Checklists decided to query ChatGPT to find out from the horse’s mouth, “How will AI change the Property & Casualty insurance industry over the next 10 years.” In the span of about 30 seconds – here is what it told us.
There are a number of ways that artificial intelligence (AI) is expected to transform the property and casualty insurance industry in the coming years. Some of the key areas where AI is likely to have an impact include:
- Risk assessment: AI algorithms can help insurers more accurately assess the risk of insuring a particular property or individual. This can be done by analyzing a wide range of data sources, including property characteristics, location, and past claims history.
- Underwriting: AI can assist insurers in the underwriting process by automating the collection and analysis of data needed to make underwriting decisions. This can speed up the process and improve the accuracy of underwriting decisions.
- Claims processing: AI can help insurers automate and streamline the claims process by identifying patterns in claims data and using this information to predict future claims. This can help insurers to more efficiently process claims and reduce the time and effort required to resolve claims.
- Fraud detection: AI can help insurers identify and prevent fraudulent claims by analyzing data and detecting patterns that may indicate fraudulent activity.
Overall, the use of AI in the property and casualty insurance industry is expected to increase efficiency, improve risk assessment and underwriting, and reduce the cost of insurance for consumers
Food for thought as we start 2023. Comments are open on this article, feel free to leave your thoughts below.