AI’s Impact on Insurance: A Closer Look at Claims and Underwriting

AI’s influence in insurance is growing, with technology providers highlighting their AI capabilities and insurers exploring new applications. AI’s potential applications in insurance are diverse, focusing on areas like Hyperautomation, Insights, Image, and Language.

The InsurTech movement has raised the bar for competition and innovation, emphasizing ROI in technology projects. AI, particularly in claims and underwriting, promises efficiency gains, fraud detection, and improved decision-making. However, the industry is cautious, balancing automation with human intervention and grappling with challenges like data security and regulatory compliance. AI in claims is already making strides, with applications in fraud detection and photo estimating, but significant ROI achievements are yet to be realized.

As AI continues to evolve, insurers are urged to consider applications beyond efficiency, focusing on loss ratio improvement and loss mitigation to truly capitalize on AI’s potential.