The Future of Insurance
In an increasingly digital world, AI has become one of the most revolutionary technologies improving every industry, even insurance. In car insurance, artificial intelligence will be able to recommend safer routes and, in the case of an accident, identify the damage and notify your insurance provider. This example is just one of the ways AI can transform the insurance industry, improving reliability, safety and customer satisfaction.
Data from Connected Devices
In the industrial sector, equipment with sensors have been around for some time; however, with the advent of AI, this information can be processed and compiled at faster rates. In addition, this information will be more precise and may be used by other systems to track many different factors. The use of devices (like smartphones, smartwatches, fitness trackers, home assistants, cars and many others) will continue to rapidly increase, constantly expanding with new categories such as home appliances and medical devices. Predictions estimate there will be one trillion connected devices by 2025. All this data would be impossible for a human to manage; however, with AI, insurance providers will be able to understand their clients better, resulting in more personalized services and pricing.
Advances in Robotics
Advancements in robotics will continue to change how humans interact with the world around them. This innovation can be seen in 3-D printing as increasing amounts of products are becoming printed and soon even homes and vehicles will be able to be completely printed. Advancements in automated technologies like automated driving are becoming more prevalent than ever before. Insurance providers will need to understand the effect of robotics on daily life, causing a reevaluation of risk assessments and protocols, opening up new products and channels and changing customer expectations.
Machine Learning
Neural networks and other machine learning technologies have a wide array of applications and are tailored and taught to serve the needs of both the provider and the consumer. These algorithms will become necessary to manage the large and complex amount of data provided by the sensors implanted into insurance products tied to the consumers' behavior and activities. With an increase in the availability of these technologies, providers will be able to utilize algorithms that are continuously learning and adapting to the world, enabling new product categories and engagement techniques able to respond to changes in underlying risks and behaviors in real-time.
Conclusion
The rapid advancement in AI will radicalize the insurance industry. Insurance providers that capitalize on these new technologies will pull ahead of the competition able to lower costs, create new products, utilize machine learning coupled with new sources of information and exceed customer expectations. Providers that capitalize on this revolution rather than shy away will thrive in the future of insurance.
