One of the definitions of Artificial Intelligence provided by Forbes is “A branch of computer science dealing with the simulation of intelligent behavior in computers.” We believe that the combination of AI with commercial underwriting models can get incredible results, that is why today we would like to talk about the role of AI in Commercial Insurance.
New technologies, in general, are transforming traditional underwriting tasks, as we have already mentioned in our blog. AI has the power of boosting and making more efficient tasks performed by humans. Today we are going to explain to you some of AI benefits for commercial insurance:
Help insurers to make better decisions
Among the different possibilities that Artificial Intelligence has, it collects and provides automated information about clients. Commercial Insurers have new data points that optimize the process of making decisions. For example, it will be possible to exclude those clients that are suspicious of committing fraud.
Thanks to the algorithms that control AI, the amount of time committed to underwriting tasks decreases significantly. All the data is easily processed, and it takes less time than the traditional processes.
This technology will also make it easier to get adapted to the different types of clients. Having automatized information about client’s behaviors and necessities, insurers can be ready for the new challenges presenting innovative solutions while being more efficient. They will be able to create relations of trust with them.
Artificial intelligence + human intelligence = perfect match
The implementation of AI in insurance does not mean the end of their career for underwriters. What is more, AI will help them to work in a more efficient way since these processes always need some human intervention. Moreover, the final decision is made by an underwriter.
Big Data Analytics: the icing on the cake
If you were wondering whether to start applying AI or Big Data analytics inside your insurance company, our recommendation is to apply both. Big data will be analyzing all the information obtained, making you choose the most attractive risk profiles reducing your loss ratio levels.
AI has come to stay. Today we just presented you some of the benefits of applying it in P&C insurance but there are many more. Would you like to stay tuned for updates on the role of AI in commercial insurance? Let us know in the comments.