We recently had the opportunity to catch up with Attila Toth, CEO, zesty.ai, the Silver Winner of the 2019 Zurich Innovation World Championship, to discuss how Artificial Intelligence is impacting the Property & Casualty Insurance market across personal and commercial lines. Click the link to have a listen. You can also read the full transcript of the conversation below. With me today is Attila Toth, CEO of zesty.ai Today we have an interesting show planned for you where we're going to talk about the global insurance industry as it undergoes a digital transformation. As insurance companies find themselves trying to make sense of all these new technologies – artificial intelligence, natural language processing, machine learning, computer vision, – understanding the business case for each can be extremely confusing and daunting. With insurance companies being held to higher customer expectations, the time is now to embrace new technologies to leapfrog the competition. Being status quo is no longer an option. Technology is driving diversity across many industries – insurance included – as it reshapes the value chain. Age-old processes are being disrupted, while new market entrants and changing business models are bringing new threats, as well as opportunities for those who act on them. Some of the questions we'll cover today include: What is the value that AI is delivering to the insurance industry, and how are insurance providers reacting to these seismic changes?

In Property and Casualty Insurance, information is the currency that drives pricing, claim loss prediction and prevention, risk management and customer experience. AXA, a global insurance company, created a proof of concept (POC) using machine learning to optimize pricing by predicting "large-loss" traffic accidents with 78% accuracy. Profitability in the insurance industry comes from two streams; the ability to identify high risks and then price them appropriately. Each year approximately 10% of AXA customers experience a loss. While the cost of most losses are in the hundreds or thousands of dollar range, about 1% are considered large losses; in excess of $10,000.