The insurance industry is a competitive sector representing an estimated $507 billion or 2.7 percent of the US Gross Domestic Product. As customers become increasingly selective about tailoring their insurance purchases to their unique needs, leading insurers are exploring how machine learning (ML) can improve business operations and customer satisfaction. The greatest opportunities seem to lie, perhaps unsurprisingly, in claims and underwriting. No other sources have taken a comprehensive look at the impact of AI among the leading insurance companies in the U.S. We researched this sector in depth to help answer questions business leaders are asking today: This article aims to present a comprehensive look at the four leading insurance companies and their use of AI. Our "top 4" rankings are based on the National Association of Insurance Commissioners' 2016 ranking of the top 25 insurance companies.

State Farm is almost the opposite of a tech startup. State Farm is #36 on the Fortune 500 and has been the #1 insurer in the United States for the last 70 years. But three years ago, State Farm executives knew they needed a digital transformation of basically Biblical proportions to continue to be relevant in the digital age. They had "dabbled" in online but failed, by their own admission, to put all the innovations together successfully. They had hired a consultant, automated existing business processes, but had not moved the needle on customer experience, revenue, or profits. As a result, the brand was getting less relevant in an app and digital-centric era, and market share started to suffer.

"Nothing compares to an actual human being helping out whenever you need," he quips to NBA basketball star Chris Paul. It's a clever dig at other insurance companies that are investing in bots or automated responses in their customer service departments. In a recent PwC survey, "Experience is everything: here's how to get it right," it is reported that 82% of U.S. and 74% of non-U.S. So, while the majority agree with Chris Paul, AI and machine learning solutions can positively impact insurance agencies in other business processes. Where paperwork is concerned, there are a few key areas where AI can boost customer experience in a manner that does not affect that personalized human interaction.

In the summer of 2017, a Los Angeles man in his mid-20s put on a necklace, blond wig and makeup and made a cellphone video describing how his camera and other electronics had been stolen. He submitted the video to his renters insurance provider, Lemonade, which paid the $677 claim in two days. Three months later, dressed in jeans and a T-shirt and using a different name, email address and phone number, the same man submitted a video claim for a stolen $5,000 camera. But this time, the algorithms that are a crucial part of Lemonade's highly automated systems flagged the claim as suspicious. Last year, the persistent fraudster, this time wearing a pink dress, tried again, only to be foiled once more by Lemonade's computers.

Add insurance agent to the list of jobs that can be automated. A robot just gave your insurance agent a pink slip. Zacharia took aim at the $220 billion-a-year US auto insurance industry on Thursday when she launched Insurify. Rather it helps you sort through the maze of competing companies, their premiums and those dizzying coverage plans. Think of it as Travelocity for auto insurance.

State Farm is the first insurer to gain FAA approval for commercial drone use which may help pave the way for widespread commercial use of unmamed aerial vehicles. A link has been sent to your friend's email address. State Farm is the first insurer to gain FAA approval for commercial drone use which may help pave the way for widespread commercial use of unmamed aerial vehicles.