AI News, Tech and innovation trends in the insurance industry artificial intelligence
UniCredit Embraces Artificial Intelligence, Revolutionizes Its Syndicated Loan Offering
Pan-European banking services company UniCredit has announced that it is piloting an artificial intelligence (AI) software that will vastly improve its corporate client advisory services.
“We have begun piloting SynFinance in a bond syndication context, with a view to improving our client advisory capabilities through the integration of proprietary data into the application, both at an investor and deal level,” explains Ranieri de Marchis, the co-Chief Operating Officer at UniCredit.
“Other promising use cases are under discussion and will follow in due course.” Italian Insurrection Certainly, both UniCredit and Axyon AI can claim to be at the forefront of the exciting Italian AI revolution.The start-up also has a second platform, Axyon IRIS, which uses AI in asset management.IRIS works by analyzing key performance metrics such as volatility or Sortino ratio to generate a more accurate prediction of how an asset will perform, up to 180 days in the future.
For example, through its automated customer service provision where AI can be used to conduct intelligent search applications on behalf of consumers or to mitigate operational risk by ensuring a firm adheres to legal compliance procedures.
Tax incentives, such as a reduced corporate income tax rate of 24% were applied to investors while start-ups and SMEs have enjoyed tax breaks for equity investment in other firms and a special tax rate for salary bonuses in an attempt to increase profitability and foster a climate of innovation.
“We are strongly committed to developing innovative services and we are now proud to be investing in and partnering with Axyon AI in order to accelerate our digital transformation and further enhance the quality of our corporate client advisory services.
This perfectly fits with our strategy of collaborating with the most promising operators in the fintech space to explore, support and develop innovative solutions that can improve the experience of our customers and meet their changing needs.”
What Is Insurtech? Terms, Benefits, and Definition
The sweeping arm of digital transformation has cast aside normal operating procedure and catalyzed technological innovation in the insurance industry.
A space full of blue chip companies replicating the traditional insurance model, insurance was, for lack of a better word, boring.Insurtech has contributed to the evolution of the insurance industry over the past few years.
The insurance industry has used technology for a long time, but insurtech refers to more innovative and disruptive technologies making their way into the space.
There are multiple applications for insurtech within the industry, including personalized policies, more options for small business policies, and customer-facing applications.
Depending on the type of policy being sought, these data points could include age, DMV records, criminal history and an individual’s placement on a mortality and sickness table.
The increased amount of data in existence and the ease of access to that data have made it possible for insurance agencies to take into account more personal data to set a premium.
For example, an individual seeking auto insurance may be asked to install a telematic device in their car that measures things like number of hard braking events, whether the driver is speeding and how hard the car is turning.
health insurance policyholder who runs 10 miles a day and gets 8 hours of sleep a night is likely to live longer and require fewer visits to health care professionals than a sedentary smoker who constantly visits the liquor store.
Insurtech software has also allowed businesses to deal with the complexities that accompany small-business insurance by improving data processing and taking larger more varied data sets into account.
The personalization offered by some insurtech products like Insureon creates opportunities for large companies and startups to offer policies for small businesses that cover their unique needs.
The chatbot can verify policy details, run the claim through a fraud detection algorithm and contact the bank with instructions on sending reimbursement payment.
The amount of funding given to insurtech companies has exploded over the past few years, from around $270 million in all of 2013, to over $1.7 billion in the first half of 2018 alone.
Future applications may include pulling together disparate policies into a single platform and the creation of products for micro-events like borrowing someone’s car.
How America’s Top 4 Insurance Companies are Using Machine Learning
The insurance industry is a competitive sector representing an estimated $507 billion or 2.7 percent of the US Gross Domestic Product.
However, no 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.
The dataset provided by State Farm was comprised of photos of drivers described as “2D dashboard camera images.” Participants were challenged with the task of classifying the perceived behavior of each driver using a list ten categories including: Competition scores were calculated using a log loss metric ranging from a minimum value of 0 to a maximum value of 1.
The first place application which achieved a score of 0.08739 utilized two neural network models and focused image classification on two main photo regions: the head region and the bottom-right quarter where the driver’s hand normally appears.
Technology companies involve greater risk because their revenue and/or earnings tend to be less predictable, and some companies may be experiencing significant losses…Nonetheless, the potential for future growth in areas such as cloud computing, digital advertising, artificial intelligence, and interconnected devices remains compelling.
Therefore, [Liberty Mutual] has continued to emphasize investments in these and other areas where we see opportunities to capitalize on rapidly emerging trends in technology.” –2016 Annual Report Earley Information Science (EIS) is an agency which reportedly helps businesses improve performance outcomes through data analysis.
As a result, Allstate found their sales support call center consistently flooded with inquiries from agents and ultimately “long wait times” translated to “lost business opportunities.” ABle, who appears as an avatar, reportedly provides agents with step-by-step guidance for “quoting and issuing ABI products” using natural language.
The report projects an increasing decline in personal lines and a “65 percent reduction of the personal auto insurance market by 2030.” A contributing factor to this trend is the anticipated debut of autonomous vehicles.
What was historically a bottleneck where we couldn’t entertain other lines of business, we can actually address their data science and predictive modeling needs now because we have a much faster throughput of our models and the business value we would be able to generate.” –
Anand Rao, partner at PwC and Global Artificial Intelligence Lead posits that while certain elements of automation technology are already integrated into many vehicles, it will take approximately 12 years for car parts to completely change and 15 to 20 years for fully automated vehicles to hit the market.Emerj’s research on autonomous vehicles has shown considerable funding allocations for self-driving technology including billion dollar investments by Ford and Toyota.
When it comes to how insurers should prepare for this shift, AI technologist Francesco Corea emphasizes that insurance companies “should be ready to engage intelligently with new types of data and adapting their models and infrastructures to fully embrace the potential of AI.” He argues that the industry should embrace a new “cultural mindset” because it is “the greatest barrier to early adoption of AI solutions in insurance contexts.” We will continue to monitor how the insurance industry evolves as we anticipate the field will continue to be impacted by AI overtime.
- On Wednesday, May 27, 2020
The future of the insurance industry: A capabilities perspective
The insurance industry is undergoing fundamental transformation. Several disruptive factors have given rise to new players with disruptive business models.
How AI is disrupting the insurance sector
Janthana Kaenprakhamroy of insure tech startup Tapoly, explains to Victoria Scholar, about how the growth within the gig economy has led to demand for ...
What happens next in Insurance: AI and Machine Learning
Welcome to 'What Happens Next' in Insurance in collaboration with Salesforce exploring the latest disruptive technology trends in the insurance sector. In this ...
How Technology is Changing the Stale Insurance Industry | Laura Drabik | TEDxSantaClaraUniversity
Amazon & Netflix are changing consumer expectations of how they want to interact with “lame” industries like insurance. New business models like a sharing ...
Trends in the Future of Insurance
Bradley Howard, Endava's Head of Innovation Europe started the conversation about “Trends in the Future of Insurance” during the morning of the Innovation in ...
Gartner Top 10 Strategic Technology Trends 2018
Artificial intelligence, immersive experiences, digital twins, event-thinking and continuous adaptive security create a foundation for the next generation of digital ...
UNIQA: Digital Transformation and Innovation in the Insurance Industry (CXOTalk #279)
How is the insurance industry changing? Dr. Alexander Bockelmann, Group CIO, Chief Digital Officer, and Board Member of UNIQA, shares with CXOTalk about ...
AI Reshaping Insurance
Artificial intelligence is about to dramatically reshape the insurance industry, evolving from back office automation to front line virtual assistance—the digital face ...
How is Artificial Intelligence transforming the Insurance Industry - Interview with Pamela Negosanti
How is Artificial Intelligence Transforming the Insurance Industry? Pamela Negosanti, Expert System's Global VP of Insurance, will explain the profound ...
Webinar: AI for insurance - how to get started
We are at a time of 'data overload' in Insurance. Customer, claim, and product data is growing, and it is not showing signs of stopping. AI can mine unstructured ...