According to the International Data Corporation’s recent report, spending on artificial intelligence (AI) systems will reach $97.9 billion in 2023, with a 28.4% compound annual growth rate from 2018-2023. Insurance, in particular, is trending towards the aggressive adoption of AI, and more specifically, machine learning (ML) powered solutions. The National Association of Insurance Commissioners reported in March 2020 that the use of AI by insurers has grown exponentially over the past few years and that “the acceleration in AI is being driven by exceptional technological advances along with a major shift in customer expectations.”
An increasing reliance on the use of AI by the insurance industry has raised consumers’ expectations for more personalized insurance, cost-effective, and agile insurance offerings and rate delivery. How can this type of delivery be achieved?
By integrating advanced analytics systems and an insurance rating engine into business operations, insurance companies can offer more personalized product bundles in real-time. AI makes that possible. To capitalize on the power that AI can bring to their business, insurers must first assess how to best leverage those capabilities with their existing systems, determine what solution works best for them, and make the solution an integral component of end-to-end automated rate and product delivery.