PriyaPatel
TLDR:
- India’s insurance market has grown substantially, with insurtech experiencing a 34% compound annual growth rate.
- Digitisation in the insurance industry has led to increased cyber-attacks and security threats.
AI in Insurance Industry to Stay Ahead of Cyber Fraudsters?
Over the last decade, India’s insurance market has grown exponentially, becoming one of the substantial financial service sectors. This growth is largely attributed to the increasing adoption of smartphones and high-speed internet accessibility in India. The Insurtech ecosystem in the country is prone to key challenges like cyber-attacks and cyber security threats, despite significant technological advancements. Insurance fraud costs the industry more than Rs 30,000/-crore every year.
The role of Artificial Intelligence (AI) in cybersecurity is crucial, as it provides insurers with tools to accurately model cyberattack scenarios and develop risk assessments. AI algorithms are crucial in generating synthetic data, detecting anomalies, simulating attacks, sharing threat intelligence, and detecting malware. AI-based fraud detection systems can work in real time on large datasets, helping insurers save money and resources.
AI enables insurance firms to modernize processes, have accurate pricing, lower overhead costs, and enhance operational efficiency. With the right mix of solutions, training, and technologies, insurers can have a competitive edge, ensuring increased customer satisfaction and trust, and providing more secure and reliable services.
