Artificial Intelligence in Property and Casualty Insurance

Artificial Intelligence in Property and Casualty Insurance

Michael Anderson

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Artificial intelligence (AI) is progressing rapidly and helping to transform the property and casualty (P&C) insurance industry. Designed to make real-time decisions that improve over time, AI leverages data from multiple sources to simulate human processes and match our capacity to learn.

We’re now seeing insurers achieve more at lower costs by using AI’s increased computing power in the cloud, advanced algorithms that run on deep neural networks, access to massive amounts of data, and tools that make implementation easier.

Whether its AI-based chatbots aimed at delivering a more consistent, personalized, scalable, and cost-effective service channel for simple inquiries, or advanced machine-learning algorithms that provide embedded real-time results enabling Smart Core™ systems, the pace and demand for insurance-focused AI solutions are increasing.

Considered to be complex and costly just a few years ago, new solutions are making investments in AI affordable while streamlining development and integration. With a near-limitless number of potential use cases, insurers must ask themselves questions such as these:

  • What AI solutions best fit my business needs to drive value?

  • What impact do these solutions have on my business and IT strategies?

  • How do I integrate these capabilities into my core systems to maximize business value?

Insurers are already using AI in policy administration to launch new products more quickly and effectively.

To gain insight on where insurers are focusing their efforts, I invite you to read a recently published white paper titled “AI in P&C Insurance: Pragmatic Approaches for Today, Promise for Tomorrow,” by Mark Breading and Karen Furtado of Strategy Meets Action (SMA). The authors describe a practical approach for AI in insurance, its current state, areas of business value, strategy implications, and systems integrations.

For additional information, register to attend the SMA webinar “The Promise and the Realities of AI in P&C Insurance” on Tuesday, August 28, at 2:00 pm (EDT).