ML and AI are going to be critical for the insurance space in rating policies and their consumers. AI is incredible at seeing patterns and quantifying them. AI can do this quickly and with high efficiency. Here are some of the areas AI can be used in “insurtech”.
Life insurance can use AI and ML to accurately predict important factors in determining consumer risk. Age, weight, and other health concerns can be considered in building a policy. Firms can use AI to accurately measure genetic markers for certain diseases and other health issues that would be directly relevant to one’s policy.
Technology will have a big impact on the effects of ratings going forward for any policy. Weather patterns, natural disasters and other impactful events can be predicted using AI, which in turn can be leveraged by providers.
AI can’t predict everything because some circumstances are far too unique. However, with the use of AI and other technologies on the rise, you can expect that the premise of “uniqueness” will actually dwindle because of predictive capabilities.
AI, predictive analytics and ML works with current processes used by providers. The implementation of this new tech will impact how providers work, provide services and maintain current consumer trust and NPS.