Across Australia, businesses of all shapes and sizes are turning to information communication technology to automate repetitive tasks, reduce overheads and increase sales and profits.
So is the insurance sector. Eighty percent of local insurers are using Insurtech – tools and technologies designed to make the insurance industry more efficient – according to the results of APRA’s 2020 InsurTech survey.
And they’re finding a wealth of applications for artificial intelligence (AI) in insurance – computer systems that can mimic the way humans perform tasks and, over time, use the data they collect to improve the way they operate.
AI in insurance becomes eyes in the sky
AI is being used in conjunction with satellite imagery to amass data about everything from the health of livestock and crops to the characteristics and condition of real estate assets. Having this detailed information on hand can make it quicker and easier for insurance companies to generate quotes and policies for customers.
The same technology can be used to gather intelligence about flood risks and assess the damage caused by natural disasters, such as bushfires and cyclones.
The information can also then be used to help insurers provide policies and settlements that more accurately reflect the risk and the level of damage sustained.
Meanwhile, the incidence of fraudulent claiming can also be reduced with the ability of assessors to have the facility to compare highly detailed ‘before and after’ images.
“ As well as more accurate claims assessment and faster processing, businesses can look forward to insurers being able to offer more customised cover”
Smarter and safer workplaces
AI is also being used to improve workplace health and safety. In the US, for example, insurers have captured video footage of workers in manufacturing facilities and have subsequently used AI to help analyse the risks associated with specific postures and positions.
Armed with this data, the businesses in question have been able to modify their ergonomics, thereby reducing the likelihood of workers’ compensation claims and, ultimately, the premiums they pay for their cover.
Robotic process automation
And, back at the office, the claims handling process is being sped up considerably through the use of robotic process automation – software that can perform a wide range of defined actions faster and more accurately than humans are able to do.
Smarter insurance for small businesses
Being able to reduce costs and become more efficient using AI isn’t just good for insurers. It can also have benefits for customers, Steadfast Director of AI and Emerging Technology Steven Tuften says.
“As well as more accurate claims assessment and faster processing, businesses can look forward to insurers being able to offer more customised cover,” Tuften says.
“Over time, AI may enable insurers to replace fairly generic policies with tailored ones, courtesy of the fact that individual risk will be able to be analysed in far greater depth.
“That may result in savings for businesses that have demonstrably low risks or are prepared to invest in measures to reduce them.”
Understanding your business insurance policies
If you haven’t reviewed your insurance for a while, it may be a good time to consider whether you’re adequately covered. Contact your broker today to discuss your policies and how they are calculated.
Important notice – Steadfast Group Limited ABN 98 073 659 677 and Steadfast Network Brokers
This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.
Information is current as at the date the article is written as specified within it but is subject to change. Steadfast Group Ltd and Steadfast Network Brokers make no representation as to the accuracy or completeness of the information. Various third parties have contributed to the production of this content. All information is subject to copyright and may not be reproduced without the prior written consent of Steadfast Group Limited.
