What is artificial intelligence and how is it applied in insurance?

What is Artificial Intelligence ?

Artificial Intelligence (AI) is the scientific field of computer science that focuses on the creation of programs and systems capable of performing tasks that generally require human intelligence. The key point of this technology is that it has the ability to learn patterns and project scenarios in order to prevent and measure latent risks.

Beyond recent products, such as autonomous cars (Tesla) or facial recognition for banking applications, Artificial Intelligence solutions have been with us for years. Here are some of its uses:

  • -Virtual assistants: Siri, Alexa, Cortana.
  • -Smartphones: smile recognition.
  • -Search engines like Google: autocomplete searches.
  • -Recommendations of music, contacts, products and services: Spotify, Facebook, Amazon.

Also Read: AI in Drug Discovery

Artificial Intelligence applied in insurance

Both the types of Artificial Intelligence and its possibilities are numerous, but there are industries in which you can take more advantage and one of them is the insurance companies . In this sector, cognitive technology makes it possible to optimize processes and achieve greater precision. It can reduce operating costs and, above all, offer a better experience to users, who will benefit the most.

The world of insurance has evolved a lot in recent decades. The business model based on the creation of risk pools , the calculation of average costs and the generation of income through premiums is becoming more and more distant. Today the calculation of all this large amount of information is done in an automated way, and at this point the enormous evolution of artificial intelligence in recent years has been a differentiating factor.

Supported by technological trends for businesses such as digital interconnection (Internet of Things), Big Data and Artificial Intelligence (AI), insurance companies can make a budget proposal based 100% on the intelligence collected up to that moment. In this way, you have the option of reaching the right balance between the price offered to the customer and the risk assumed by the insurer.

Also Read: Books: Artificial Intelligence and Smart Cities

Smart processes

By understanding what Artificial Intelligence is and the possibilities for their business scheme, insurers will be able to create a renewed, complete and disruptive digital experience. Your customers and distributors will enjoy smart processes. In the case of auto insurance , it ranges from opening a policy, assessing damage and assigning a provider, to repair and closing.