So Jacob’s doorbell rang, and a self-driving car was standing in front that his personal AI assistant ordered. Upon hopping into the car, he decides to drive today and move the car into the “active” mode. Jacob’s assistant maps the best route and also gives him suggestions for upcoming congestion and a low likelihood of accidents.
Jacob’s assistant notifies him that his mobility insurance premium will double on the route he selects and signifies the distribution of other cars on the road. It alerts him that his life insurance policy will now be priced on a “pay-as-you-live” basis and also informs him about the additional value he may get this quarter. The additional amount will be deducted from his particular bank account on the 30th of next month.
When Jacob pulls into the parking lot of his hotel, his car bumps into the signboard. As soon as the car stops moving, its internal diagnosis system determines the extent of damage and even indicates and captures the part that got damaged. As soon as he reaches the driver’s seat, the screen on the dash informs him about the damage and confirms the approval of the claim. It also reports that the mobile response drone is already on its way for inspection.
If the vehicle is in the condition running, it will be directed to the nearest repair station, or a replacement vehicle will be sent once the guarantee card is scanned.
Techniques such as convolutional neural networks AI is capable of of mimicking the perception, reasoning, learning, and problem-solving of the brain.
With this evolution, insurance will shift from “detect and repair” to “predict and prevent.” This will accelerate as brokers, consumers, financial intermediaries, insurers, and suppliers become adaptive to technologies.
As AI gets integrated into the industry, carriers need to position themselves to respond to the evolving landscape.
Insurance executives need to understand the factors contributing to how AI will reshape claims, distribution underwriting, and pricing. With this understanding, they can develop skills and talent to embrace technologies and create that culture along with a vision needed to be successful players in the industry.
Let’s understand the major applications of AI in the insurance industry –
