AI or artificial intelligence has become a dominant buzzword in the commercial insurance industry over the past few years. So why are commercial insurance carriers swooning over artificial intelligence, machine learning, and natural language processing?
It's no surprise that AI technologies will have a dramatic impact on all aspects of the insurance industry, from distribution to underwriting, pricing, and claims. Advanced technologies and data enable commercial lines insurance carriers to achieve straight-through processing, expand their underwriting capacity, and bind policies in near real-time.
McKinsey predicts that in 2030 manual underwriting ceases to exist for most personal and small-business products across life, and property and casualty insurance. The process of underwriting is reduced to a few seconds as the majority of underwriting is automated and supported by a combination of machine and deep learning models built with the technology stack.