Artificial Intelligence (AI) is best known to most people as the antagonist of countless science fiction stories. But the future is now, and AI is fast becoming an effective way to do business. This does not mean that robots are handling the day-to-day work (at least not in the insurance business!) but that increasingly more companies are relying on sophisticated, “thinking” computer programs that can assign value, assess risk or sort through a large set of data instantly. The number of companies employing some form of AI doubled from 2017 to 2018, and only continue to rise.
The Future of Artificial Intelligence in Business
While AI is very popular, most businesses have not brought this tool out of the prototype stage. It can be a competitive advantage, but it is not a deal breaker – yet. Companies that have brought their AI out of development and implemented it have seen a whopping 86% return on their investment. AI is good for business, and it will continue to spread to every facet of the market that can reasonably absorb it.
For insurance agencies, this means programs that can take in all the data on hand and sort through it in seconds to arrive at whatever conclusions the agency needs to know. AI can be adjusted in order to account for company values, the state of the market, and whatever else they need. Risk can be boiled down to a single number, a policy’s premiums can be calculated with laser accuracy. Not every agency, not even every big agency, is using AI, but it is very easy to see the advantages. And those who ignore it entirely are very likely to be left behind – maybe not today, but perhaps in the future.
Strategies for Implementing Artificial Intelligence
Although it is easier for start-ups and smaller insurers to implement some form of AI, it is possible for larger companies to start the process now. The two factors involved are (1) the amount and kind of data available, and (2) willingness to adjust the business model. Companies that go for broke on new data acquisition maybe don’t need to shake things up so much, but can use it to better inform their current processes. Even a company with less access to key data can simplify their strategy and start “thinking” better with the resources they have. An organization that does not care to change can still keep afloat, at least right now, but ought to look at what small changes they can make to stay competitive in a world with AI. And of course, some folks may want to go all in on AI, shaking up their entire business model. It’s a risk, but it could be one with a big payoff in the end.
https://www.accenture.com/us-en/insights/artificial-intelligence/scaling-enterprise-ai