Due to its data- and labor-intensive processes, the Insurance industry is well positioned to benefit from the integration of advanced digital technologies like artificial intelligence (AI) applied to text (or text analytics), semantics and machine learning.
In this post, we’ll look at how AI is impacting insurance processes with a focus on underwriting.
Why AI for underwriting
Understanding what risks to take is a highly sophisticated process because it requires the analysis of data and statistics that allow underwriters to predict the likelihood of most risks and set premiums accordingly.
Evaluating the risk of insuring an automobile, home, person, etc. implies the analysis of multiple factors, different information coming from a range of sources. That’s why there is a growing need in the insurance market towards solutions that can make the underwriter’s job more effective and efficient. Artificial Intelligence and cognitive computing applied to texts enable collaborative workflows, deep integration with underlying systems and easy access to contextual data analytics.
How is artificial intelligence shaping insurance?
Implementing AI into the underwriting process has advantages for risk assessment, thanks to the capability of pulling pertinent information together from multiple sources to more adequately assess the potential exposure.
Due the nature of documents that should be analyzed (unstructured content), risk appraisal is moving into the realm of AI and cognitive computing, which can be easily applied to unstructured data sets not only to reduce errors but also to help underwriters discover indicators of known and unknown risks and make the process of judging risk more accurate and less costly.
Learn more about how AI can transform underwriting and other insurance processes: when you automate underwriting operations leveraging Artificial Intelligence, not only does that department benefit, but so does the company as a whole.