For a long time, the term “insurance innovation” seemed like an oxymoron. The insurance industry has long been seen as a laggard compared to many other industries, especially when it comes to technology. In fact, I remember a report several years ago that surveyed the usage of social media in 30 different industries. Insurance came in 28th, ahead of only Zoos and Funeral Homes.
Having all these new technologies and data sources is great, but what is really essential is using Artificial Intelligence (AI) to quickly and accurately interpret all these new data sources and make them useful to insurers. And it seemed that nearly every vendor maintains to have a AI solution. But not all AI solutions are equal.
It’s crucial to understand that AI is a tool, not a “solution” in and of itself. It is based on statistical algorithms and large amounts of data to solve specific business problems. As such, an AI “solution” is only as good as the underlying algorithms and data, both structured and unstructured, that it can analyze. Moreover, it’s critical for AI-based tools to mesh seamlessly with real-world needs and business paradigms.
To learn more about AI and its potential positive impact for insurers and their customers, download an in-depth article by our Chief Scientist, Eric Sibony on “AI: The key to transformation in the Insurance industry”
With nearly 400 vendors at the ITC Connect showing a huge variety of technologies it is obvious that insurance innovation is no longer an oxymoron. Personally, I cannot wait until next year to see what new ideas and inventions are helping transform the insurance industry!