Like so many other industries, insurance is becoming increasingly data-driven. Data, of course, has always been an important resource for decisions on claims, risk, and coverage.
But in a data-driven scenario, the data becomes the main focus of that decision-making process, with artificial intelligence, machine learning, and other advanced analysis technologies mining and refining data, enabling companies to make more cost-effective, efficient, and objective decisions.
Data- especially that collected from sensors and other IoT devices that are multiplying by the day -- along with AI could be doing much more for insurance companies.
According to experts, AI systems utilize only a small amount of all data available; as much as 90% of collectable data goes to ‘waste.’
This often hidden data is collected from sensors, IoT devices, cameras, and other sources. Smart homes -- where almost everything, from lights to refrigerators to washing machines, is connected -- are increasing in popularity; modern vehicles are essentially moving computers, with a plethora of sensors gathering information on almost every aspect of the driving experience and environment; and wellness device apps record data on health, activity, exercise, and lifestyle.