These days, artificial intelligence seems to be everywhere. You can check the weather just by asking for the temperature out loud, and it can tell you when it's time to order more laundry detergent before you've even added it to the grocery list. But other areas that aren't always top of mind, like insurance, have also begun to use artificial intelligence. AI has made a lot of positive changes throughout the insurance industry. For example, by tracking policy-holders' behavior behind the wheel, auto insurance companies have been able to encourage more responsible driving and try and help reduce risky behavior.

It is a whole new world due to the pandemic. The life insurance industry settled more claims in the year 2021 than in 2020 due to this Black Swan event. A sudden demand for life insurance policies and increased claims induced operational changes for the insurance industry. As we head into the new financial year, there is no end yet to the anxiety as variants of the Covid-19 virus continue to emerge. Given improved economic sentiments, greater appreciation for its need and increased vaccinations, life insurance companies are expected to do a lot more in the new Financial Year (FY) 2023.

To summarise, this use case presents a way for actuaries to automatically classify free-text claims causes data into pre-defined categories for further analyses. Ultimately, with the help of BERT, computers are able to understand human language. For this instance, computers are able to understand and compare medical terms or description of a claims event, which can be messy at times. The alternative which is manual filtering in Excel is not practical, especially for large number of claims. As mentioned previously, Excel has been the primary ETL tool for most life insurance actuaries.

Life insurance provides trillions of dollars of financial security for hundreds of millions of individuals and fami lies worldwide. To simultaneously offer affordable products while managing this financial ecosystem, life-insurance companies use an underwriting process to assess the mortality risk posed by individual applicants. Traditional underwriting is largely based on examining an applicant's health and behavioral profile. This manual process is incompatible with expectations of a rapid customer experience through digital capabilities. Fortunately, the availability of large historical data sets and the emergence of new data sources provide an unprecedented opportunity for artificial intelligence to transform under writing in the life-insurance industry with standard measures of mortality risk.

Every crisis presents an opportunity and covid-19 is no different. Like in many others, the pandemic has changed consumer behaviour in the life insurance industry as well, leading to greater interest in pure term insurance plans. Also, self-service usage has seen a sharp uptick in these times, as an increasing number of Gen X and Gen Y customers are adopting self-service options. Not long ago, on-boarding required customers to fill up application forms, a laborious process which involved a lot of paperwork and anxiety. Also, the fulfillment journey required multiple hand-offs and disparate systems leading to customer experience issues.

The U.S. life insurance industry is beginning to understand the vast potential benefits of robotic process automation (RPA) and artificial intelligence (AI). These two related breakthrough technological innovations leverage the power of machine learning to increase productivity and reduce the risks associated with human error. Of course, many professionals in our industry find the names of these technologies unappealing, prompting skepticism from the outset. These reactions are often rooted in fear of the unknown, apprehension that is unnecessary once we understand the essence of the technologies. RPA and AI are often used in tandem to complete a transaction and are currently utilized in many customer servicer interactions we encounter daily.

Nine questions deep into a life insurance questionnaire, with no end in sight, the will to continue is waning and your favourite social media feed is waiting in the tab next door. This is the big problem facing the life insurance industry, or should we say, the big problem that was facing the life insurance industry. That's because OnePath Life Insurance, owned and operated by ANZ, yesterday revealed a new streamlined set of life insurance questions developed using machine learning models that have revolutionised the underwriting process. As reported by ComputerWorld, the new life insurance questionnaire is the brainchild of a collaboration between OnePath and researchers from the University of Technology, Sydney, reducing a section of the application process from 32 questions to just seven. RELATED: 7 financial trends you won't want to miss in 2018 And while technology might be enabling these new changes, the driving force behind it is consumer behaviours. "Today's society has expectations, especially millennials, in terms of fulfilment: they don't want to wait," said OnePath's Chief Underwriter, Peter Tilocca.