PriyaPatel
TLDR:
– Artificial Intelligence (AI) brings advantages such as improved risk assessment and personalized pricing in the insurance industry.
– However, AI poses risks related to data integrity and accuracy.
The digital revolution in the insurance industry has reached a mature state, with AI offering benefits such as improved risk assessment and personalized pricing. AI enables underwriters to analyze large datasets quickly, providing a more detailed picture of risks and customized solutions. Additionally, AI can transform claims management functions, improving efficiency and accuracy. However, AI’s reliance on clean and accurate data is crucial to prevent inaccuracies and incorrect advice. Human intervention is necessary to validate AI conclusions and ensure data hygiene.
Open APIs and the Internet of Things (IoT) offer benefits in streamlining workflows and connectivity. However, the potential risks of data breaches and IT failures highlight the importance of maintaining data security and choosing partners with the same security mindset. Insurers need to understand and price the risks associated with interconnectivity to protect against potential vulnerabilities and breaches in interconnected systems.
