AI & Machine Learning in Insurance
Editorial by Andrew Dart
Artificial Intelligence (AI) has been the subject of research and pop culture for over 70 years. Alan Turing, first developed his famous AI defining “Turing Test” in 1950. Stanley Kubrick popularized AI in his 1968 cinematic masterpiece “2001: A space odyssey” with the homicidal “HAL9000”. However, technology has taken its time catching up as the following milestones show:
We now see AI technology being embedded into our everyday lives; on our phones, in our homes, inside our cars and within our social media. CB Insights recently reported AI technology Start-ups’ received a record $5 billion investments in 2016 across a range of industries including insurance.
In this month’s InsurTech Insights, we take a closer look into the AI phenomenon, focusing on how AI is being used by insurance early adopters, to drive new, innovative business models and how insurers can get started on their own AI programs.
From chatbots in China to robots in Hong Kong, Rick Huckstep presents some of the latest developments in AI for insurance. He discusses with Alberto Chierici of SPIXII and Donna Peeples of Pypestream some of the different approaches that InsurTechs have taken in applying AI to various parts of the insurance value chain. Rick also looks at Lemonade’s use of AI and the European regulations that potentially restrict how far AI can reach within financial services.
In his article, Gary Richardson from KPMG, explores the “integration challenge” traditional insurers face as they drive towards an AI enabled digital future on their current technology. He provides some practical insights to help insurers create real value from their AI and Machine Learning investments, to enable meaningful business progress.
In all, AI is a very hot topic for our industry, from its impact on customers, through to its ability to fundamentally redefine the inner workings of the insurance organisation. I hope you enjoy this month’s coverage of this fascinating and thought provoking topic brought to you by KPMG and The Digital Insurer.
If InsurTech is ever going to be remembered for one thing, it is the shift of focus to the customer. Putting the customer full square and centre at the heart of the technology enabled insurer is how InsurTech will be defined. A key enabling capability in this transformation is
AI is clearly a hot topic for insurers. And, as Rick’s article aptly points out, InsurTech startups are creating compelling new use cases and applications for data, algorithms and AI within the insurance space. It is, indeed, an exciting time for insurance.