How is AI improving profitability?

Read more: Why understanding AI is "non-negotiable" for insurers "The first step in the process is to identify opportunities of similarly situated or homogeneous risks. Once we know what product we're underwriting and what the target risks look like, we take those characteristics, have our digital partners scan the web for publicly available information, and use their AI engine to identify any targets by geographic region that meet those risk characteristics," he explained. This information is then passed on to Fortegra's underwriting agency to assess opportunities for growth, improving the overall efficiency of the sales process. Now data can play a critical role and be applied to an AI engine to ensure the hierarchy of risk characteristics are properly set. Kahlbaugh highlighted that this strategy allows underwriters and agents to be far more productive, and the application of technology to improve both relationships ultimately translates to better risks, lower loss ratios and higher commission profits.