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Changing Insurance Business Model Due to Artificial Intelligence and Machine Learning

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21st, June, 2019
Changing Insurance Business Model Due to Artificial Intelligence and Machine Learning

Artificial intelligence (AI) and machine learning are increasingly finding their way into the business world and many business processes have been streamlined using artificial intelligence. The vast amount of data generated everyday needs intelligent processing and analysis and machine learning and artificial intelligence help in these and in turn help businesses set their path and align their business model. In past few years, the use of artificial intelligence and machine learning has increased manifolds in various verticals and their importance is accepted by leaders.

The Insurance industry is one of the sectors reluctant to adapting to these technologies until some time back. But the road to the technological innovations in the insurance sector was paved by some startups. These startups with better and innovative products started disrupting the traditional business model of the insurance sector in India. In an e-mail interaction with the “Economic Times of India”, Girish Kannali, vice president & general manager for insurance & healthcare business unit at mid-tier tech services company Infogain, said that the future of insurance industry in India would be highly dependent on artificial intelligence and machine learning in future and it’d completely change the current traditional business model.

According to him, changes are happening in the insurance sector at a rapid pace and technological innovations are disrupting the traditional business model. Machine learning in cohesion with Artificial Intelligence-based solutions are helping insurers to automate the processes and is making the process smoother, faster and accurate and at the same time it is assisting in detecting possible fraud.

He is of view that Internet of Things (IoT) & advanced sensors and telematics could help in enabling insurers to more effectively model risk and underwriting policies and in minimizing the claims and losses by assessing risk profile.

He says that the insurance sectors’ reach will increase in the coming years in India due to solid economic growth, increased life expectancy and government policy support. The use of Artificial Intelligence and machine learning will help assess the risks and so the insurance companies will be able to offer very competitive products to new consumer segments.

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