Artificial Intelligence - February 12 2020
With Valentine’s Day coming up, we thought it would be a good time to look at why P&C insurance companies are falling head over heels for artificial intelligence. Let’s face it: the insurance industry has a reputation for playing shy when it comes to embracing new technologies, but AI is proving impossible to resist. A July 2018 Accenture study reported that more than half of insurers nationwide were already using intelligent solutions in one or more of their business processes. Here’s why traditionally risk-averse insurance companies are coming out of their shells and putting their hearts (and budgets) on the line for AI.
As an industry, insurance no longer has the luxury of continuing to conduct business as usual. The business landscape is evolving rapidly. New risks such as cyber and climate change, new incumbents, emerging distribution channels, rising customer expectations, and new opportunities such as insuring the gig economy are compelling insurance companies to evolve stagnant business processes. Traditional insurance giants who once dominated the industry are being forced to deliver new product lines and new on-demand digital offerings to serve customers faster and remain competitive.