Article Ernst Visser, Associate Director KPMG
The use of artificial intelligence (AI) has skyrocketed in many areas. The insurance industry, for example, is a domain where technological innovation and traditional practices come together. In this blog, we will discuss the current status of AI use in insurance, go into the innovations in Non-Life reserving that are within reach of practical application, and set out the challenges that need to be addressed when applying AI. In future blogs, we will discuss other applications of AI, such as pricing in insurance.
In the insurance industry, artificial intelligence has emerged as a transformative force, reshaping traditional practices and enhancing operational efficiency. The utilization of AI in underwriting has evolved, with predictive analytics and machine learning algorithms analyzing extensive datasets in real time to create more accurate risk profiles. This not only allows insurers to tailor their policies to individual needs but also ensures fairer and more competitive pricing. Claims processing, often perceived as a cumbersome task, has undergone a revolution with AI-driven applications. Natural Language Processing (NLP) algorithms and image recognition technology expedite claims settlement, providing faster and more accurate assessments. Customer service has been revolutionized through AI-powered chatbots and virtual assistants, offering instant responses and improving overall responsiveness. Additionally, AI's role in fraud detection has become indispensable, with machine learning algorithms identifying patterns indicative of fraudulent activities, thus contributing to a proactive approach in maintaining the integrity of the insurance ecosystem. These AI applications have not only improved accuracy, efficiency, and personalized customer experiences but also set the stage for ongoing innovation in the insurance landscape. The current state of AI in insurance signifies a pivotal moment, laying the foundation for a future where technology continues to redefine industry norms and elevate customer satisfaction.
