How Artificial Intelligence is shaping the Insurance Industry

The insurers that prioritize AI have an advantage over their rivals thanks to AI and machine
intelligence. Here is a summary of the most recent developments in the field of AI insurance and
their practical applications. AI can assist insurers in risk assessment, fraud detection, and
application process human error reduction. As a result, insurers are better able to offer customers
the plans that are best suited to their needs. AI allows for more efficient service and claims
processing, which benefits customers.

Four AI-related trends shaping insurance

Our houses, cars, businesses, and even ourselves are already using the fundamental technologies
of artificial intelligence. By dramatically expediting digitalization for insurers, COVID-19's
disruption altered the timescales for the deployment of AI.
Organizations have to adapt almost immediately to enable
remote workers, extend their digital capabilities to assist
distribution, and improve their online channels. Despite
the fact that most businesses probably didn't make
significant investments in AI during the epidemic, the
increased focus on digital technology and a more openness
to change will make it easier for them to integrate AI into
their workflows.

Over the next ten years, the insurance sector will change due to four key technological
advancements that are closely related to (and occasionally facilitated by) AI.

Data from connected devices explodes

Sensor-equipped equipment has long been commonplace in industrial settings, but in the next
years, the number of connected consumer products will skyrocket. Along with new, expanding
product categories including apparel, eyeglasses, home appliances, medical devices, and shoes,
the penetration of existing gadgets (such automobiles, fitness trackers, home assistants,
smartphones, and smart watches) will continue to rise quickly. By 2025, according to experts, there
may be up to a trillion connected gadgets. With the avalanche of new data these devices will
generate, carriers will be able to better understand their customers, leading to the development of
new product categories, more individualized pricing, and an increase in the real-time delivery of
services.

Methodology
A conceptual framework is developed by briefly examining and integrating the three
complimentary theoretical views of artificial intelligence, service logic, and reverse usage of
consumer data. Through illustrated case studies that highlight various strategies for assisting
customers in creating value, the proposed framework is further shown.

Findings
By giving customers access to more resources,
chatbots represent a novel form of contact that allows
businesses to shape how their customers create value.
Four metaphors are found that describe how
insurance chatbots can assist customers in creating
value based on the conceptual framework that is
presented and the illustrative case studies.

Research Limitation
The case examples are presented to provide illustration just because the study is conceptual in nature. No
representative user data from the demographic that will ultimately decide if chatbots are worthwhile was
used.

Practical Implication
Insurance businesses can think about the kind of part they want to play in the value-creating processes of
their clients using the suggested framework, which is in line with provider service logic.
Originality/value

Automated chatbots offer simple access to data made available through a dialog-like interface. This study
is one of the first to evaluate their ability to provide value to the insurance industry.