The insurance industry has undergone significant changes over the years. The integration of advanced technologies such as artificial intelligence (AI) has paved the way for further evolution, offering improved efficiency, reduced costs and enhanced customer experience. Various AI applications are currently in use in the insurance industry, ranging from underwriting to claims processing. AI can help insurers evaluate risk more accurately by analyzing large amounts of data such as historical claims data, credit scores and social media activity--thereby enabling insurers to offer personalized coverage to customers and price policies more accurately. It can also aid in detecting and preventing fraud by analyzing data patterns and identifying suspicious activity, which can help insurers save money by reducing the number of fraudulent claims they pay out.

One of the most significant changes in recent years in the insurance sector has been the incorporation of artificial intelligence (AI) into various phases of the insurance process. From underwriting to claims processing, artificial intelligence has the potential to transform the business by increasing efficiency, lowering costs, and improving customer experience. In this article, we will look at the function of artificial intelligence in insurance and its possible impact on the sector. Underwriting is an important part of the insurance process that involves assessing potential policyholders' risks and establishing the appropriate premium. This has traditionally been a time-consuming and labor-intensive procedure, but artificial intelligence has the potential to make it faster, more efficient, and more accurate.

If you think embedded insurance is the only hot thing in insurtech these days, we've got a surprise in store for you: While it's true that startups that help sell insurance together with other products and services are enjoying tailwinds, there are plenty of other opportunities in the space, several investors told TechCrunch . You see, insurtech startups often need to take into account the myriad rules and regulations in place when they seek to innovate and embed insurance into products, which might make it difficult to pull it off. Given the current emphasis on achieving cost efficiency to extend runways in the broader startup ecosystem, it appears investors are open to insurtech startups that can build a sustainable business model, regardless of it including embedded insurance. "Insurtech startups that do not offer embedded insurance, and rather provide other innovative solutions will still attract VC funding this year, especially if they can show cost-efficient and sustainable growth," said Nina Mayer, a principal at Earlybird. And according to David Wechsler, a principal at OMERS Ventures, "having an embedded strategy is not required for venture funding."

If you think embedded insurance is the only hot thing in insurtech these days, we've got a surprise in store for you: While it's true that startups that help sell insurance together with other products and services are enjoying tailwinds, there are plenty of other opportunities in the space, several investors told TechCrunch . You see, insurtech startups often need to take into account the myriad rules and regulations in place when they seek to innovate and embed insurance into products, which might make it difficult to pull it off. Given the current emphasis on achieving cost efficiency to extend runways in the broader startup ecosystem, it appears investors are open to insurtech startups that can build a sustainable business model, regardless of it including embedded insurance. "Insurtech startups that do not offer embedded insurance, and rather provide other innovative solutions will still attract VC funding this year, especially if they can show cost-efficient and sustainable growth," said Nina Mayer, a principal at Earlybird. And according to David Wechsler, a principal at OMERS Ventures, "having an embedded strategy is not required for venture funding."

My earlier blog on AI use cases in insurance covered use cases such as customer conversations, motor on the spot claim servicing, integration with voice, fraud detection and cross-sell / upsell opportunities. Since there was a request for an encore, covering lesser known use cases, here we go. Claims beyond motor insurance AI-infused automation of claim processes in lines other than motor have picked up speed. While experts may still be required for assessment in complex and high value cases, initial steps such as entry, hard perusal, the classic step of "smelling" the low-hanging "rat" etc can be done by the AI engine, thereby freeing up the claims team for higher value work. Paperless processing When you have data coming to you in myriad forms (handwritten forms, printed forms, text, images, voice, video etc), the ability of AI engines to ingest this data at both scale and agility, and churn out meaningful insights is just amazing!

All segmentation provided above in this report is represented at country level and can be customized according to needs. All products covered in the market, product volume and average selling prices will be included as customizable options which may incur no or minimal additional cost (depends on customization).

Tensorflight provides structured property data for the insurance industry by instantly analysing aerial, satellite and street view imagery. Robert Kozikowski is the company's co-founder and CPO; he has over a decade's worth of experience in the tech field and is now using his expertise to accelerate the digitisation of insurance. Tensorflight is an AI imaging-based insurtech automating commercial property inspections and claims processing. Our mission is to make high-quality data available to the insurance industry to enable informed, timely and accurate decisions. We use three sources of imagery – satellite, aerial and ground level – to automate the slow and expensive process of in-person property inspections.

Artificial intelligence (AI), machine learning and digitalisation are key words that those tasked with improving business processes in the insurance sector will be well aware of – but these tools also present the opportunity to show end customers that the insurance industry values them. Read: Amazon's online insurance store – what does it mean for the industry? Read: There will be'winners and losers' in insurance now more than ever – Guidewire This was according to Andy Fairchild, advisor and non-executive director at various insurance-related firms and owner of consultancy Julyfourth Services. Speaking during an Insurance Times webinar entitled AI: A driving force for the future of insurance yesterday (24 November 2022), in association with Inawisdom, Fairchild explained: "[AI] is how we can show customers that we value collecting their data more than we currently do. "We must, as an industry, show customers how important that data is and how important data collection for the provision of an insurance product is." AI processing of customer data and the use of AI-enabled chatbots to respond to customer queries would improve the customer experience by speeding up often slow customer journeys, said Fairchild. But the collection of data behind these operations has to be improved too. Fairchild continued: "We can get that customer data from a person-to-person interaction or – increasingly – from a person-to-machine interaction and therein lies a big move for the industry." Fairchild added that the better collection and deployment of data to construct AI models could transform customers' interactions with the insurance sector from a "trudge process" into something that "they really value". AI and machine learning also have the potential to "revolutionise" the insurance sector in terms of risk selection and pricing if data collection improves, Fairchild added. Read: Brokers embrace cloud technologies to'maintain competitive edge' He explained: "The fundamentals of our industry are risk, risk selection, the terms that we underwrite that risk selection on and the price that we put on it." However, Sameer Deshpande, head of enterprise architecture at broker PIB Group, said that the insurance sector was lagging behind other areas of financial services in its use of artificial intelligence. Deshpande explained: "There are a number of areas where [insurance is] still behind the curve – [for example,] manual processes and document processing.

What is the impact of artificial intelligence in insurance? Well, there are a lot of use cases for artificial intelligence in everyday life, but what about AI in insurance? The effects of artificial intelligence in business heavily include insurance. Are you scared of AI jargon? We have already created a detailed AI glossary for the most commonly used artificial intelligence terms and explained the basics of artificial intelligence as well as the risks and benefits of artificial intelligence for organizations and others. So, it's time to explore the role of artificial intelligence in insurance sector. One of the most revolutionary advances has been the use of AI in insurance, which has been hailed as having significant economic and societal advantages that eventually boost risk pooling and improve risk reduction, mitigation, and prevention.

Ripe Thinking, has released its annual figures, this morning with turnover rising 24% to £23.3m. The Manchester-based insurtech said that last year was a pivotal one for the business, particularly given the majority stake acquired by Aquiline Capital Partners in November. During the period staff numbers increased from 77 to 102, including further growth across its tech and digital marketing teams. "Our model has been resilient through the economic challenges of the past two years, and we maintained our trajectory through the pandemic. We have a clear route for long term growth and the ability to deliver consistently strong profits. Couple this with our ethos to digitally transform the insurance sector and the technology in place to deliver it, and we are primed for our next bold phase of development," said Paul Williams ACII, CEO of Ripe Thinking.