The insurance industry stands on the brink of a transformative revolution, driven by the exponential growth of artificial intelligence (AI) technology. As AI continues to redefine the boundaries of possibility across various sectors, including finance, manufacturing and more, its impact on the insurance landscape cannot be overstated. The surge in patent applications related to AI in driver risk profiling – over 17,000 within the last three years – signify a significant shift in the industry landscape. Exploring Global Data’s report, “Artificial Intelligence in Insurance: AI in Driver Risk Profiling,” revealed a range of over 20 innovation areas that will shape the insurance industry. There is clearly significant opportunity in AI for risk and safety that insurers can benefit from if they engage with an open mind. This blog will explore some trends to watch for as you explore artificial intelligence for your business.
AI’s Impact on Commercial Insurance
AI is poised to reshape every facet of the commercial insurance landscape, from risk assessment and claims processing to underwriting and customer experience. Leveraging advanced algorithms and predictive analytics, AI enables insurers to make data-driven decisions with unprecedented speed. By automating repetitive tasks and augmenting human capabilities, AI can enhance operational efficiency, reduce fraud and improve overall profitability. In a recent report from The Jobs of Tomorrow series by the World Economic Forum, in collaboration with Accenture, insurance underwriting roles ranked highest on their list of jobs primed for potential augmentation by Large Language Models (LLMs). These insights corroborate the transformative potential of AI in driving innovation and growth within the industry.
World Economic Forum, Jobs with the highest potential for augmentation
In a world where technology is outpacing operational adoption it is wise to think critically about defensive measures. In Insurance Thought Leadership’s interview with Jim Fowler, EVP and CTO at Nationwide, Jim shared that “… over the next few years, our industry will also need to adapt to protecting our teams and customers from those looking to leverage Gen AI to do harm. We’re already seeing people try to generate false images of accidents to file a fraudulent claim or trying to recreate someone’s voice to gain access to their accounts.” With every advancement in technology comes challenges and AI is no different. While there is great opportunity to improve processes and increase productivity, there is an equal risk of falling victim to bad actors making it paramount to engage with the technology early.
Early Engagement with AI: Strategies for Insurers
Early engagement with AI technologies is crucial for insurers to gain a competitive edge in the market. Leading players in the insurance space are already familiar with AI and have been experimenting with it to streamline processes and improve customer experience. Generative AI is evolving at a rapid pace and insurers that stay up to date with the latest technology will be positioned for success. We are seeing insurers across the industry leverage AI to augment more mundane processes in order to allow time for their team to focus on more impactful work. Strategic partnerships with innovative providers, such as SambaSafety, enable insurers to access cutting-edge solutions and expertise, driving sustainable growth and success without disrupting existing processes too much.
How SambaSafety Uses AI for Risk and Safety
SambaSafety takes a purpose-built approach to AI, focused on delivering value to insurers and their policyholders through automated workflows and access to a continuous flow of contextualized behavioral data. SambaSafety streamlines risk control processes by integrating continuous monitoring of telematics, MVR and CSA data sources with AI-based training workflows. By leveraging AI to recommend relevant training content based on the event and vehicle, we enable fleets to target specific risk factors and improve overall safety outcomes.
Commercial fleets are already generating massive amounts of telematics data and using it to improve their business operations. This same data can be harnessed to support insurance underwriting and claims models and further an insurer’s internal AI strategy. Data aggregation companies, like SambaSafety, are able to ingest data directly from fleets, normalize it and then deliver it to insurers so that they can leverage it within their data strategy. Leveraging aggregated data from policyholders empowers insurers to incorporate the data into their own models more quickly and with confidence.
Our clients can depend on the accuracy and quality of the data that we deliver to help drive profitability through underwriting and loss control enhancements. Our systems are powered by AI to ensure that the trove of data received is continuously monitored for 37 of the most important data health and quality metrics. Although a newer technology itself, telematics data aggregation is proving to be a valuable tool for streamlining the integration of telematics insights within an organization.
Embracing AI in Commercial Insurance
The potential impact of AI on the commercial insurance industry could be transformative if approached with an open mind. As insurers navigate the complexities of a rapidly evolving landscape, accepting AI is an excellent step toward sustainable growth and success. By partnering with innovative providers, like SambaSafety, insurers can adopt new tools to drive operational efficiency, mitigate risk, and deliver superior value to their clients.
Want to learn more about SambaSafety’s approach to telematics aggregation for commercial insurers? Download our free guide.
