Nearly 70% of insurance firms are currently using AI

Insurers are expected to increase investment in AI amid the pandemic

insurance firms

Nearly 70% of insurance firms are currently using AI. Source: shutterstock.com

GlobalData found that 67% of firms in the insurance field are currently using AI. Despite 90% of firms claim that AI will have a disruptive influence on the sector, its adoption is still lower than that of cloud computing (83%), big data (78%), and the IoT (70%).

At a time when insurers are moving towards discontinuing the sale of products and waiving deductibles, the adoption of technology such as AI, which offers the prospect of operational savings and efficiencies, is likely to captivate the industry’s interest
Beatriz Benito, Senior Insurance Analyst at GlobalData

According to a statement, the coronacrisis caused a large number of claims across several business lines, including travel insurance and business interruption policies.

The report revealed that the AI use is broad and may be used across different fields of the insurance value chain. Besides, investments in this technology are expected to focus on speeding up claims and detecting fraud.

As to the main AI advantage, it eliminates the need for face-to-face contact between customers and agents to submit claims.

We’ve reported that global AI software market value is expected to jump from $22.6 billion in 2020 to $126 billion by 2025. AI is using automation, deep learning, and natural language processing to streamline business operations and decision making.

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