The seismic changes in the tech-world powered by Artificial Intelligence are simply mind-blowing. AI is transforming most of the industrial sector, and these technological advancements have also reshaped the insurance industry. AI has become one of the most sought-after innovations in recent times.
The current research trends reveal that AI will significantly reshape the insurance industry over the next decade. With the successful implementation of AI in the insurance industry, it can tap a potential annual value of up to $1.1 trillion.
With the growing role of AI in the insurance industry, it will help the industry enhance its productivity, improve customer experience, increase the efficiency of claims management, and reduce fraud. AI will help the insurance industries to reshape the claims, distribution, underwriting, and pricing. The insurance executives need to embrace emerging technologies to generate better revenue. They need to understand that Artificial Intelligence is the future of the insurance industry.
As far as the advancement of AI over the next decade is considered, AI and deep learning tools, like convolutional neural networks, can evolve the functioning of the insurance industry. AI system can mimic the perception, reasoning, learning, and problem solving similar to the minds of humans. Owing to this evolution, AI will transform the insurance industry with the automation and digitization method. In the coming decade, insurance will shift from its present state of “detect and repair” to “predict and prevent,” hence transforming most of the aspects during this process. This will help the insurance industry administrators, brokers, consumers, and other intermediaries, to conduct any operation seamlessly with advanced technologies. It will also enhance decision making and productivity, lower down the costs, and optimize the customer experience.
As AI is being increasingly deployed in the insurance industry, this article explains how it will transform it over the next decade.
Table of Contents
The Explosion of Data from Connected Devices
The use of sensors in industrial equipment is significantly increasing. Over the next few years, sensors will be used to connect most consumer devices. Most of the existing devices such as the fitness tracker, cars, home assistants, and smartphones connected via sensors, will be joined by hordes of other devices such as clothing, shoes, eyewear, electrical appliances, and medical devices.
This will result in the creation of new data that the carrier company will have to deal with. A better analysis of this data will help the companies to give better customer satisfaction. They can assess the influence of the product on the clients. This will provide the needed database for developing new product categories, with more personalized pricing powered by real-time service delivery.
Increased Prevalence of Physical Robotics
The field of robotics is advancing significantly. Innovative technologies are continually replacing the old ones, and the upgraded features are changing the interface of interaction between humans and machines. 3-D printing has the power to reshape the commercial insurance products of the future. In a matter of 5-years, 3-D-printed buildings will become a common sight. Besides this programmable, autonomous drones, self-driving cars, autonomous farming equipment, and surgical robots will become a commercial product over the next decade.
Open Source and Data Ecosystems
Data is becoming accessible from any location with the help of open-source protocols. This data can be shared across different industries. This will encourage the public and private entities to come together to develop ecosystems where they can share data for miscellaneous use cases. This sharing of data will be compliant with the regulatory policies and cybersecurity frameworks. Wearable data can easily be forwarded to the insurance carriers for better work efficiency.
Advances in Cognitive Technologies
Deep Learning methods like convolutional neural networks and other AI tools like computer vision and data analytics, which are used for image, voice, and unstructured text processing, will evolve significantly in the coming years. These are some of the cognitive capabilities based on machine learning techniques. It can develop capacities similar to that of a human brain to learn about things through decomposition and inference. This will help to process large and complex data streams, which will help the insurance industries to target their customers better.
AI will change the dynamics of the insurance industry over the next decade. The in-depth analysis of the growing impact of AI on this industry helps to understand the changes insurance value chain that will be achieved by the year 2030. One will be able to purchase insurance without any delay and with less human intervention as it will be thoroughly powered by AI technologies. AI will also be able to assess the risk in the system to deliver a real-time solution.