Artificial intelligence (AI) has been identified as one of the top issues which insurers should currently be incorporating into their business strategy, according to PwC.
The report states that artificial intelligence (AI) has the potential to identify and open up new revenue streams for insurers. The report claims the major implications of AI on the insurance sector will include efficiencies, improved effectiveness and better risk selection and assessment.
PWC noted that it will not be long before we can expect AI to be “automating existing customer-facing, underwriting and claims processes” and that over time its impact will become more profound. “It will identify, assess, and underwrite emerging risks and identify new revenue sources,” the report said.
Questions about whether insurers should be worried about the potential risks that AI may bring were addressed with a quote from author of The Master Algorithm, Pedro Domingo, who said: “People worry that computers will get too smart and take over the world, but the real problem is that they’re too stupid and they’ve already taken over the world.”
The report added: “The insurance-specific branch of FinTech, InsurTech, is emerging as a game changing opportunity for insurers to innovate, improve the relevance of their offerings, and grow. InsurTech, has seen funding in line with FinTech investment overall, and we expect investments to increase as new players and investors enter the space.”
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