The entire global insurance landscape is set to witness some revolutionary changes due to the implementation of AI-based solutions. Almost every phase in the value chain of the insurance industry is likely to undergo huge changes due to AI. For example, nowadays, many major insurance companies are implementing virtual agents and chatbots that provide customized product recommendations, along with managing customer enquiries efficiently.
Due to such developments, the global AI in insurance ecosystem is set to experience substantial growth over the next few years. The global market is expanding at a faster rate, as more and more insurance companies are leveraging AI to offer better products and services to their customers. AI enables automated claims processing, which helps make claim estimates more accurately and quickly.
Moreover, AI capabilities are being leveraged to offer a completely new range of products such as instantly customizable life insurance and on-demand property coverage. The robotic process automation can allow insurance companies to accelerate the speed at which different tasks are being doneand help them optimize the services provided to customers, brokers, and the third parties.
Further, AI can help insurance companies implement behavioral policy pricing, which will allow people with healthier lifestyles and safer driving habits to pay less for their health and auto insurance respectively. Along with ensuring faster claim settlements, AI can reduce the likelihood of fraud claims as well.
However, the adoption of AI in the insurance sector is progressing rather slowly as compared to other industries. Except for some major insurance companies, a large number of insurers are quite slow in deploying AI technologies. Lack of technical expertise to handle complex AI algorithms, as well as risks related to data leaks and cybersecurity concerns, can slow down the growth of the global AI in insurance ecosystem to some extent.
The North American AI insurance market has exhibited significant growth, especially in the health insurance segment. The Asia-Pacific market has also recorded substantial growth and is projected to maintain its growth momentum in the coming years. Asian countries like China, India, and Hong Kong have recorded strong growth in the life insurance segment.
The major players operating in the global AI in insurance ecosystem are Microsoft Corporation, Amazon Web Services, Inc., IBM Corporation, Wipro Limited, Avaamo Inc., Cape Analytics LLC, ZhongAn, Acko General Insurance, Shift Technology, BIMA, Zurich Insurance Group, Lemonade, Trov, Slice, Insurify, Insurmi, PolicyPal, Planck Re, and Tractable.
At present, it is difficult to guess the impact that the full utilization of AI will have on the insurance industry. But there is no doubt that technologies like machine learning, deep learning, natural language processing, and robotic automation will transform the entire insurance lifecycle, right from customer acquisition to claim processing and help insurance companiesachieve operational efficiency and boost growth.
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