The insurance business, one of the oldest and most conventional, is being significantly disrupted by artificial intelligence and new technology. To address this fast changing world, AIM Media hosted MachineCon 2024, which brought together industry professionals to debate the implications of these advancements for insurance.
The panel comprised executives from prominent participants in the industry, including Prashant Dahiya, Head of GBS Strategy and Operations at Swiss Re, and Prawal Kalita, Managing Director at Marsh. Rai Rajani Vinodkumar, Head of AI Platforms at Chubb, chaired the discussion.
During the conversation, the following key trends and developments were highlighted:
Personalisation and New Products
Insurance is getting more personalised, as new products and solutions emerge. This transition is made possible by the massive volumes of data that are now available, as well as technology such as AI that can extract insights from them. Many personalised products no longer require clients to talk with an underwriter, with end-to-end trips taking less than 5 minutes.
Parametric Insurance
A parallel economy is emerging around parametric insurance, in which reimbursements are automatically generated based on specified data points rather of needing claims to be made. Examples include airline delay insurance and possible uses for natural disasters.
AI Adoption in Major Firms
Large insurance firms are creating privately guarded AI platforms that will be utilised by thousands of workers worldwide for both business and Global Capability Centre (GCC) operations. This has resulted in increased productivity and creativity.
Risk Management Advancements
New techniques estimate storm damage using satellite and drone imagery. This enables insurers to swiftly assess exposures and prioritise claims processing.
Operational efficiency
AI and automation have significantly improved efficiency in many monotonous operations. GCC teams created advanced analytics tools that allow risk assessment teams to spend less time preparing data and more time analysing it.
Remote Risk Inspections
Many risk inspections and engineering evaluations may now be completed remotely, saving time and money while increasing coverage.
Regulatory Challenges
The necessity of developing AI systems that are safe, creative, and comply with legislation such as GDPR was highlighted. Cyber threats, regulations, and climate change were identified as the industry’s main issues in the next few years.
Future Trends
Looking forward, the debate predicted:
– AI technologies improve productivity for all employees. – Improved data and analytics lead to new risk pricing and coverage options.
-Improving global insurance protection through innovation
-Growth of global and regional positions within Indian GCCs, which house a considerable part of certain corporations’ worldwide workforces.
The panel discussed how AI and future technologies help insurance businesses function more effectively, offer new products, and enhance risk assessment. To properly capitalise on these breakthroughs, the sector must negotiate legal hurdles and cultivate the appropriate organisational culture. The potential of these technologies in insurance is still in its early stages, with further development projected in the future.
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