How do you think the insurance industry is going to look in 10 years? With online-only companies becoming more popular and more desirable, they’re causing the entire industry to rethink how they’re going to stay relevant. The introduction of artificial intelligence into the policy recommendation process is just another piece in the puzzle of how businesses and families will interact with insurance companies 10 years from now.
Some thoughts to keep in mind:
--Accenture's global Insurance Consumer Study found that 57% of consumers said that they would find it appealing to get advice from their insurer or bank on how to travel and shop more sustainably. Millennials and Zoomers showed even more interest, at 67%.
--As of 2020, a study conducted by the AnitaB.org Institute found that women make up only 29% of the tech workforce. Another study published by the World Economic Forum found that only 22% of AI professionals across the world are female. These low numbers help contribute to AI systems that show bias. In the next 10 years, women and other diverse members are going to be essential at making sure the industry can identify biases in data before they make it to the consumer.
--Usage-based insurance (UBI) has been gaining traction in the U.S. at a compound annual growth rate estimated above 29% from 2019-2026.
“Policy holders expect more out of their insurance when it comes to the overall experience. Artificial intelligence isn’t just for smartphones and video games but can also be used to keep us safe and protected and save money. Over the next several years, we'll see AI play an ever-increasing role in the recommendation and accuracy of policy coverages, while also bringing the entire insurance industry into the 21st century to be on par with organizations that offer superb services,“ says Linh C. Ho, chief marketing officer at Zelros.