This week, Silicon Valley-based Harvesting Inc launched an Artificial Intelligence (AI)-backed platform that uses satellite images of farms to gauge credit risk for banks that lend to farmers. The technology can be used to capture data on farms in the developing world as well as in mature markets like the US. Harvesting Inc generates "credit scorecards" using satellite imagery of farms and other data points, already in the works in the African market. "Think of us as someone who calculates the language of agriculture [into] the language of finance," Garg said. Garg told deBanked that because small farmers in emerging markets don't have credit cards, let alone smartphones, they have no credit history and their creditworthiness can't be evaluated through a traditional Western banking system.
Insurance companies consume terabytes of information every day in the form of digital data. Valuable data is being provided by more and more sources, which quickly paints a reliable picture of a risk or a submitted claim and makes it possible to filter out unwanted risks and fraudulent claims. State-of-the-art technology is required to process this influx of information and convert it into applicable knowledge and insights. This calls for intelligent software capable of processing information quickly, learning independently, drawing smart conclusions, and making recommendations – similar to a human, but then smarter and more efficient. We can identify roughly three types of artificial intelligence.
Many insurance companies already utilize AI for risk analysis, allowing them to determine more accurate premiums based on the data. What's especially exciting for those of us working in the industry, though, is how machines are learning to spot inconsistencies in applications, claims and premium assessments that have historically plagued insurers. With thousands of insured clients, companies experience a backlog in claims processing due to human error, but AI can streamline the process and improve both accuracy and customer satisfaction rates.
KT will apply its artificial intelligence technologies to insurance and health care services in partnership with Lina Life Insurance, the mobile carrier said Tuesday. The two companies signed a memorandum of understanding Monday to improve Lina's digital health care services by adding KT's AI platform technologies at the insurer's headquarters in central Seoul. Under the agreement, KT's AI GiGA Genie speaker will offer users informative health care content insurance services provided by Lina, including dental care tips for kids, descriptions of medial terms and insurance bills. There are more than 600,000 GiGA Genie users as of this month, according to KT. Benjamin Hong, CEO of Lina Life Insurance (left), poses with Koo Hyun-mo, president of KT's corporate planning group after signing a MOU on artificial intelligence cooperation at Lina's head office in central Seoul on Monday. KT will also provide speech-to-text conversion and text analysis technologies to the insurer to help improve the company's call center system for customers.
Credit risk or credit default indicates the probability of non-repayment of bank financial services that have been given to the customers. Credit risk has always been an extensively studied area in bank lending decisions. Credit risk plays a crucial role for banks and financial institutions, especially for commercial banks and it is always difficult to interpret and manage. Due to the advancements in technology, banks have managed to reduce the costs, in order to develop robust and sophisticated systems and models to predict and manage credit risk. To predict the credit default, several methods have been created and proposed.
With insure tech boasting a transparent and near instant alternative, a disruptive 21st century beckons for underwriters. Janthana Kaenprakhamroy, CEO and founder of Tapoly, saw a gap in the market when she couldn't find cover for an Airbnb let, which are, by nature, short-term. Freelancing in the so-called'gig economy' is growing, from Uber drivers to Amazon deliverers. This self-employed sector, which also includes many in creative industries like film crews and music producers, is where insurance technology startup Tapoly is aiming to apply artificial intelligence (AI) to big data, to offer short-term insurance in minutes. This is a first for the insurance sector, Kaenprakhamroy says.
Earlier this year, 60,000 technology experts from 170 countries descended on Lisbon, Portugal, to take part in Web Summit, the world's largest tech conference. As part of Web Summit, I attended MoneyConf, an insurtech and fintech conference, where the world's leading insurance companies, banks, tech firms and disruptive startups met. Here, I spoke with industry leaders about how they were changing insurance's long-standing image problem and improving user experience (UX) to better serve customers.
MetLife processes over 260,000 life insurance applications a year. Underwriting of these applications is labor intensive. Automation is difficult because the applications include many free-form text fields. The application contains questions that can be answered by structured data fields (yes-no or pick lists) as well as questions that require free-form textual answers. Currently, MetLife's Individual Business Personal Insurance unit employs over 120 underwriters and processes in excess of 260,000 life insurance applications a year.
American Airlines (Fort Worth, Tex.) has utilized speech-recognition technology to enhance its automated flight information system, AI Magazine Volume 20 Number 1 (1999) ( AAAI) consortium representing 60 percent of all newspapers circulated in the United Kingdom, has developed an intelligent agent-based classified advertising web site. The ADHunter system collects and indexes as many as 1 million automobile, help wanted, and property classified ads. Heritage Mutual Insurance (Sheboygan, Wis.) is using intelligent software to improve its underwriting process. The company's rule-based paperless personal lines processing application automates the procedure for evaluating and issuing a variety of insurance products. David Blanchard is the editor of Intelligent Systems Report (Cuyahoga Falls, Ohio; www.isreport.com),