Artificial Intelligence has been deeply integrated into many consumer devices nowadays. It has the potential to mimic and produce outcomes through problem-solving methods that are similar to that of the human mind. Thus, AI, coupled with machine learning and deep learning, will change the landscape for many business sectors, including insurance.
How Predict and Prevent Tools Affect Insurance
Many enterprises were focused on the break-and-fix model, which helped AI integrated devices detect and flag incidents and provide possible courses of action. But this meant that the devices could not reduce downtime. Here is where prevent and predict tools come in.
The focus of IT enterprises has now shifted towards prevent and predict tools. These tools can detect problems before they occur. The IoT (Internet of Things) has facilitated the development of devices that are easy to use, cost-effective, and consist of sensors that can help prevent damage and loss for homeowners. As clients, suppliers, and insurance brokers become more equipped with technology, these devices can reduce the client’s expenses, time, and hassle and improve their loss ratios with insurance companies.
Insurance brokers need to understand emerging technologies and know what prevent and predict tools are available to their clients to offer secure and effective solutions, as IoT sensors can also lower insurance premiums.
The Future of Insurance
Artificial Intelligence, coupled with prevent and predict tools have the power to change the insurance sector and bring about positive change. These changes include:
- Data Ecosystem: The advancement of AI will ensure that data can easily be found online. For this, many private and public companies will develop data ecosystems where data can be shared across multiple industries. For example, sensors can transfer data directly to insurance carriers, and home and auto data can be made available through consumer devices.
- Connected Devices: By 2025, there will be up to one trillion connected devices. Sensors will be found in cars, clothes, smartwatches, home appliances, medical devices, etc., to collect various categories of data so insurance carriers can better understand and help their clients.
- Robotics: Robotics in the agricultural, consumer, and industrial sectors can change risk assessment and customer expectations.
Artificial Intelligence can reshape the insurance industry's claiming, distributing, and pricing process. Insurance executives must embrace technology to improve customer satisfaction and grow their business. Join AAI and contact us today for more information.