Insurance Algorithms - AI, data and digital trace changing the industry
Insurance is an industry, in which risk forecasting is the key to a company's successful performance in the market. Information and data are necessary for forecasting accuracy. The more there are, the more accurate the risk assessment is. Here again, artificial intelligence (AI), machine learning, and behavioral psychology can help with forecasting and making recommendations.
According to KPMG, about 90% of insurance companies have already begun implementing new technological solutions in operational processes. The most popular area for introducing new technologies is loss settlement and underwriting.
Even today, we can see that telematics and wearable gadgets are used to gather information about the client's driving style in order to predict the degree of risk and probability of an accident. Facial recognition technology predicts possible diseases associated with signs of bad habits, such as alcoholism or smoking. AI and machine learning can minimize the likelihood of fraud and save insurance companies billions of dollars.
- How are AI and data analysis transforming the insurance industry?
- How do innovative technologies help insurance companies save time and money?
- What new types of insurance appear with the introduction of digital technologies?