How Machine Learning And AI Reduce Risk

Risk management is integral to insurance, but it’s traditionally been an inexact science. Thanks to recent technological advances, however, risk management is about to get a long overdue upgrade.

If an eyebrow is raised, it is likely because the insurance industry has been slow to adopt technology, but artificial intelligence (AI) and machine learning are making headway.

The appeal in using data to predict outcomes, drive efficiency and reduce costs has sparked intrigue and curiosity. Tack on the ability to make jobs easier and facilitate claims faster, and even the biggest skeptics, those most resistant to change, are curious about how AI can be applied.

Despite the aversion to tech or potentially costly, time-consuming operational overhauls, AI systems already have been put to work in some of the world’s largest insurance organizations, where they are used to address highly specific issues that have plagued different sectors for years.

Now, the time has come to consider how AI can help with risk management.