The AI Powered Insurer
Editorial by Rick Huckstep
Artificial Intelligence (AI) is all around us, from Siri to self-driving cars, to facial recognition. Designed to perform specific tasks or functions, the current generation of narrow AI can outperform humans when it comes to routine activities. By imitating the natural learning process of the brain, AI systems create artificial neural pathways mimicking the plasticity that separates Homo sapiens from every other species on the planet.
In other words, the AI powered machine can work things out like we do (but without getting tired, hungry, lazy or emotional). Which means that for the AI powered insurer, they can work things out on a scale and speed that is either unachievable or unaffordable at a human level. Such as reading the world’s library of academic research to identify emerging risks (see Praedicat) or providing a 24×7 customer service bot on Facebook Messenger to automate claims handling (see Spixii’s work with Zurich).
For this month’s InsurTech Insights (now in its 3rd year!), KPMG’s Paul Brenchley and Kaushik Raghunandan write from the perspective of AI enabled sales and service. From improving sales performance to providing greater service closer to the customer.
For my article, it’s all about the opportunity and the threat that AI poses for insurers. The analogue luddites that believe the old adages, such as nothing writes business faster than a Montblanc pen, have a short shelf life compared to the digital converts and the InsurTechs.
And remember to join us on the 30th April for the latest in our series of webinars – The AI powered insurer!
Chairman, The Digital Insurer
(No machine was harmed in the production of this month’s newsletter)
To explore the increasing digital expectations of customers and businesses, Rick Huckstep looks at the impact of AI on the digital transformation of insurance.