TECH UP THOUGHTS BY MEG HATTON, TECH UP FOR WOMEN TEAM
As artificial intelligence is being intertwined into our daily lives – with personalized ads, healthcare plans, and more – industries across the board are adopting new technologies to streamline their services. One industry in particular whose future is being changed by artificial intelligence: Insurance.
Though the insurance industry may not be the first to come to mind for many, the influence of modern technology for home, health, and auto insurance is profound. The more information technology attains from users, whether it be health data from smart watches, or data on home security from smart doorbells, the more personalized plans become. Through every step of the process, artificial intelligence is changing the way carriers interact with their customers.
As technology has allowed for greater connections across the globe, so has it allowed for a more personalized connection between customers and companies. As insurance companies look to price their plans competitively, the help of AI can equip carriers with user-specific data and information. Home insurance companies can gather data on one’s location, crime rates, likelihood of filing a claim, and more through smart technology in the home. Health insurance companies can use data from smartwatches and wearable tech to competitively price plans based on users’ health data. Insurance plans are far from one-size-fits all, and technology and AI are shaping the future for an even closer fit. Insurance companies can also use AI to detect fraud. Using automation to analyze claims thoroughly, abnormalities and false claims can be spotted and dealt with efficiently.
When it comes to auto insurance, the growth of driverless cars has the potential to upend the entire industry. Designed with safety and crash-prevention technology, driverless cars, in theory, will decrease and potentially eradicate accidents. With this, a lessened need for auto insurance will arise. In order to adapt, insurance companies will need to reevaluate policies, pricing, and focus on other types of insurance. Liability insurance will become a major priority for manufacturers of these cars, as customers put full trust in their engineering to ensure safety.
A greater presence of AI and robots in everyday life will shift risk pools, create new problems, and change customers’ expectations. Looking at these changes through the lens of insurance, it is clear that in coming years major adaptations will need to be made. The future of home, health, auto, and all types of insurance is subject to profound change and specialization.