Insurability and artificial intelligence

Kennisbank •

According to actuaries and risk professionals, the risk’s impact on policyholders is constantly changing. On one hand, the trend of digitalization and data analytics has transformed the way (re)insurance is dealing with risk. On the other hand, the policy holder’s risk appetite changes as well.

Insurability and artificial intelligence

It is already clear that the technological trends impact the insurance value chain, and affect the way products are being sold, the underwriting, claims management or the predictive risk modelling space. It is believed that by 2035, more than 80% of the insurance policies will be sold digitally. A digital environment for both the policy holder and the insurance industry will eventually reshape the ways policy covers are being treated. The digital evolution will provide more risk coverage options, resulting in a new definition of the insured risks. Artificial Intelligence systems are currently heavily investigated for their impact on the insurance sector. As discussed in the recently published paper ‘AI and the opportunities and challenges it presents to insurability’1, Artificial Intelligence (AI), as part of a digital world, will play an important role in challenging the concept of insurability.

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Over de auteur

Bogdan Tautan MSC AAG

Reinsurance Actuary and Capital Analyst at Achmea Reinsurance, part of the Actuarial Data Science and Kwaliteitszorg / Professionalism commissions at the Royal Dutch Actuarial Association, co-Vice-Chairing the Actuarial Association of Europe’s AI and DS Working Group and Chair of the AI Governance workstream, part of the International Actuarial Association’s AI Task Force initiative.