Artificial Intelligence within the insurance sector is set to be one of the next big things for the industry, allowing policy providers to revolutionise customer experiences, speed up processing times and help customers get answers to queries more quickly. This in effect will allow consumers to save money and work to provide the insurance provider with a more defined result that they can work with to deliver an appropriate and measured policy to the consumer.
This has all come off the back of new research delivered through the governments modern Industrial Strategy – the governments plan to boost jobs and drive innovation across the UK. Three new research projects have been funded by a £3 million investment from the Industrial Strategy Challenge Fund and are currently looking at:
- Technology Driven Change and Next Generation Insurance Value Chains – research into how AI can be used in underwriting and claims processing, in order to speed up the process for customers.
- Unlocking the Potential of AI for Law – how AI can be used in the legal services for good – working out where AI can legitimately resolve disputes.
- Innovating Next Generation Services through Collaborative Design – to explore what future uncertainties that new AI technologies would bring to the service industries by looking at potential design and developments.
Professor A Milne, of Loughborough University, is carrying out the research project on ‘Technology Driven Change and Next Generation Insurance Value Chains’ – his research will explore the implications for the insurance industry of this wave of new digital technologies. They will identify and map the range of opportunities for AI-based innovation in business processes and business models, across underwriting and risk analytics, claims processing and customer engagement. They will also examine, through engagement with industry on business opportunities and challenges and through a range of case studies, the barriers to adoption and the enablers of change.
A bright future for AI and Insurance
The insurance industry is one that has the potential to be completely changed, both for the consumer and the companies providing the insurance policies. Customers will be able to use the best in available technology to take out a policy, with 74% of consumers agreeing that they would be happy to get computer-generated insurance advice, whilst the companies themselves will be able to ensure the policies they hand out are bespoke to each individual. A recent study found out that nearly 80% of all insurance executives polled believe that artificial intelligence will revolutionise the way insurers gain information from their customers.
With 4 out of 10 of the top insurance providers already using some form of machine learning, this number is only going to increase as time goes on and artificial intelligence becomes more widespread and easier to get your hands on.