The advancement of technology has had profound impacts on almost every global industry in recent years including the insurance sector. Insurance Business has weighed up the potential pros and cons of technological advancement on the insurance industry, highlighting how growth in AI in particular will allow insurers to assess risk more accurately than ever before.
As technology becomes more and more advanced, industries across the spectrum are feeling the disruption from digitisation and automation – and insurance is no different. But while the industry is becoming better educated on insurtech and its potential benefits generally, artificial intelligence – or AI – specifically, seems relatively unexplored. Just a day after Facebook put the brakes on Admiral’s new app concept, through which the insurer planned to analyse users’ posts and likes to determine how safe a driver they are, it seems as though the industry doesn’t yet know it all. “The power of AI is in its ability to keep sifting through enormous amounts of data, continuously learn from patterns and use these to project scenarios and suggest actions,” Heidi O’Leary, principal consultant at Market Gravity, a proposition design consultancy, told Insurance Business.