Deep learning (DL) tools like convolutional neural networks which contain millions of simulated neurons structured in layers enable artificial intelligence (AI) to imitate the learning, reasoning, perception and problem solving of the human brain. This technological change is revolutionizing every dimension of the insurance industry. While insurers, suppliers, insurance brokers and consumers are getting better at implementing DL and AI tools for the improvement of reasoning and productivity, cost minimization and the enhancement of the customer experience, this technological shift will be even faster. In this blog post, we are going to share with you four aspects insurers need to focus on and how they can get prepared so as to get the most out of this tech-driven transformation. The number of connected consumer devices will drastically rise in the near future.

Fremont, CA: Artificial intelligence, machine learning, and natural language processing have proliferated over the last few years and established themselves as disruptive technologies in every sector. The applications for these technologies are vast and bring a plethora of options for businessmen. In a short span, these technologies have gone from being theoretical discussions to practical applications. Like all other industries, the insurance sector can also benefit significantly from these technologies. There is a lot of hesitation when it comes to accepting new technology, and a lot of people refuse to believe that a machine can perform their job.

At a recent Cintra event on'Exploring the art of the possible: how ISVs innovate with machine learning and the cloud', a series of guest speakers detailed how machine learning has enabled the development of a broad range of organisations from retailers, to public service providers, to insurers. During the event, Tom Maleczek (pictured), CTO of Charles Taylor InsureTech, carried out a critical review of different cloud platforms and highlighted the current growth trajectory of cloud computing. Between Oracle, traditional technology providers moving into and promoting the cloud, new emerging organisations, and organisations that have traditionally been in communications seeing the importance of connectivity and building services to be consumed as needed, he said, this ecosystem is crowded and still growing. In 2019, the cloud services system was valued at US$225 billion, he said, and this is expected to grow in 2020 to between US$270 billion and US$300 billion, at an annual growth rate of approximately 20%. "This sort of growth," Maleczek said, "shows that cloud services must be helping businesses grow and tackle the challenges they have today."

Funding for insurtechs isn't slowing down, with $2.3 billion invested in 2017, a 36% increase from 2016, and, so far in 2018, insurtech funding transactions in Q2 have reached an all-time high, according to Willis Towers Watson. At the same time, the benefits that insurance companies stand to gain from insurtechs are growing. A recent Accenture report found that US insurers could collectively grow their profits by $20 billion with the implementation of artificial intelligence, machine learning, and data analytics – the focus of many insurtech solutions on the market right now. "When it first started with insurtechs, it was a lot of disruptors getting the funding, but now there's a ton of insurtech enablers that are coming out," said Linda Dodson, chief experience officer for AVYST, a technology solution provider aimed at independent insurance agents. "It's always hard for anybody to get into carriers, especially the new insurtechs coming on board, but you have carriers, like The Hartford, that have whole programs set up for insurtech start-ups."

Artificial Intelligence (AI) is already delivering game-changing benefits in inventory management, forecasting, faster diagnoses, order fulfilment, manufacturing processes and robotics. With very big data increasingly accessible and available, the tidal wave of Knowledge Work Automation is predicted to impact the global economy by 5-7 trillion per annum. But with new opportunity comes new risk. AI gone wrong could have disastrous consequences. But while the world angsts about the existential risks (will robots destroy the human race?), it's our job to protect your business in the here and now as you push forward the boundaries of technology. Specialist insurance that's designed with Artificial Intelligence in mind is a must.