AI IN INSURANCE
“ AI has potential ethical risks if not used correctly but if applied right , it can be exceptionally powerful ”
MEGHANA NILE CTO FOR INSURANCE , FUJITSU
However , while the use of AI in insurance is still in its early days , adoption will accelerate over the next one or two years . Insurers that aren ’ t adopting the technology will be in trouble as they ’ ll be stuck with high expense ratios .”
Where are insurers missing out on AI ? Despite the rapid adoption of AI in insurance over the past few years , there are still areas where insurers are not fully embracing the technology and leaving themselves exposed to risk , inefficiency , or avoidable cost .
“ We have only started to scratch the surface of what ’ s possible when it comes to applications of AI in the insurance industry ,” Nigel Lombard continues . “ In addition to customer service and claims processing , AI has the potential to support underwriting and fraud detection , which can drastically improve both loss ratios and expense ratios . This kind of activity has been relatively underutilised to date but has the potential to disrupt the legacy systems and traditional business models that traditional providers have had in place for decades .
“ AI also has the potential to use predictive analytics to analyse demand , create new products , improve pricing precision , and even determine changes to customer risk ,
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