New data from research forecasts immense growth in artificial intelligence (“AI”) underwritten insurance premiums.
The study predicts that the value of AI underwriting will surpass $20 billion by 2024 – a sharp increase from the estimated value of $1.3 billion for 2019. Additional projections from the study include that the growth will be the result of simplified underwriting processes, faster customer onboarding, and lower operational costs; and efficiencies in underwriting will benefit from increased use of telematics and Internet of Things management tools in the motor, home, life, and health insurance sectors.
Meanwhile, wider access to operational and behavioral data will improve data analysis efforts and allow insurers to better protect against risks. Juniper expects the industry will save $2.3 billion by 2024 because of AI, up from $340 million in savings in 2019. The motor insurance industry will see the biggest cost savings, accounting for more than 60% of total savings globally by 2024, enabled by the significant uptake of AI-based insurtech premiums and several insurtech vendors applying AI to great effect.
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19 Aug 2019