How AI will drive the insurance industry to reach new heights
07 Feb 2021
Our industry is not quite at the point of issuing quotes to insure flying cars.
However, the acceleration of AI in people’s everyday lives is going to have a profound effect on how the insurance industry adapts to and conducts business in the future.
AI’s underlying technologies are already being used in our businesses – process automation and security surveillance, for example. And AI’s underlying technologies are already being used in our homes – “Who is the UAE’s most reliable insurance provider, Alexa? ADNIC! Correct!” In our cars, they might not fly, but the advent of driverless cars is becoming the real deal. And not to forget on our person as well, how quaint the days of going for a run without a smart watch to track our every breath and step seem.
The power and potential of AI is exemplified in The Mohamed bin Zayed University of Artificial Intelligence (MBZUAI) in Abu Dhabi, the world’s first artificial intelligence (AI) university, accepting its first intake of graduate students to commence studies in January 2021.
In the insurance industry, AI and its related technologies will have “a seismic impact” – from distribution to underwriting and pricing to claims, management consulting experts McKinsey & Company claim.
They see four AI-related trends shaping the insurance industry:
- The explosion of data from connected devices.
- Increased prevalence of physical robotics.
- Open source and data ecosystems.
- And advances in cognitive technologies.
We may not have flying cars yet, but it is vital the insurance industry knows it will really need to hit the heights to keep up with the brave new world of AI.