This post is part of a series sponsored by CoreLogic.
In recent years, artificial intelligence (AI) has changed the way everyone lives, works, and plays.
AI is more than just a trend; it is the ability of a machine, computer, or software program to make decisions and take actions by imitating human logic and thought patterns. AI technology is designed to solve problems and make decisions based on the data it processes and analyzes.
Regardless of industry, AI will continue to have a profound impact on work. This also applies to professionals in the property and casualty insurance industry, which is lagging behind in digitalization. AI-driven technology is increasingly being designed for insurance companies, claims professionals, and real estate restoration contractors and technicians. (In their latest work E-bookCoreLogic® takes a closer look at how AI will continue to impact the world of property and casualty insurance and everyone who works in it.
Insurtech (technology designed for the insurance industry) is growing. As insurtech evolves, it will incorporate more AI. Already, companies in this ecoosphere are regularly using the following types of AI-based solutions:
- Data collection tools for underwriting risk assessment
- Chatbots provide automated customer service to policyholders
- Data and storm modeling for predictive weather forecasting
- Virtual asset inspection
- Drone for aerial image collection
It’s important to understand that AI has the potential to change work for the better. By taking over manual and repetitive administrative tasks, you can make the work of professionals across the industry more meaningful and fulfilling. As a result, people can focus more on tasks that only humans can do, such as building meaningful relationships with partners and customers.
Level of AI investment
There is a wide range of AI software platforms and applications, and there is no “one size fits all” approach. There are different levels at which companies can implement AI, depending on their specific business and customer needs, as well as relevant state and federal regulations.
Low-level investments in AI include implementing tools that do not directly impact customers. For example, a low-AI system is a technology whose capabilities are limited to automating, streamlining, and optimizing workflows, without the need for decision-making processes.
Higher levels of investment in AI, on the other hand, include technologies that make more proactive decisions.
Deciding how to leverage AI
There are many factors to consider when determining the optimal amount and type of AI technology to integrate into a property/casualty insurer or remediation contractor’s digital ecosystem. Companies in the property and casualty insurance industry operate in a highly regulated environment and must therefore be especially careful about how they incorporate AI into their operations.
A key step in determining the level of investment in AI is to conduct a risk/benefit analysis of AI implementation to identify where your business may be vulnerable. Decision makers, data scientists, and IT leaders should consider the following questions:
- How will AI impact customers?
- Is the quality of your data worth adopting AI applications? And how willing and able are you to invest in data monitoring?
- Do AI applications fit into our compliance/regulatory framework?
- Based on how much you plan to scale your business, can you afford not to invest in AI?
Accurate and informed answers to these questions will make it much easier to decide how to incorporate AI into your workflow, and therefore your level of investment.
Regardless of the level of investment in AI, there must always be a balance between human interaction and technology. Ultimately, there must be a human behind every decision, even when AI supports decision-making through data analysis.
If you want to learn more about AI and the options for incorporating it into your digital ecosystem, check out CoreLogic’s e-book .The role of artificial intelligence in the real estate ecosystem. ”
©2024 CoreLogic, Inc. All rights reserved. The content here and in the eBook is for informational and educational purposes only and may not be reproduced or used without express permission. Although all CoreLogic content herein and in the eBook is believed to be accurate, CoreLogic makes no warranties, express or implied, regarding its completeness, accuracy, applicability, or suitability, including but not limited to the associated We make no warranties, representations, or guarantees. is not responsible for the contents of this book or e-book. Furthermore, we do not accept any responsibility for the contents of this book or e-book, or for any reliance placed on them. CoreLogic® is a registered trademark of CoreLogic, Inc. or its affiliates or subsidiaries.
topic
insurtech
data driven
artificial intelligence
property
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