The insurance industry is outpacing at least a dozen other business sectors when it comes…
June 10, 2018|
There are some little talked about effects of Artificial Intelligence on the auto insurance industry–AI investment has high potential for growing business and boosting employment. As more insurers explore and deploy AI auto insurance tools, the repercussions will be wide-ranging–some unexpected, some surprisingly positive for the industry. Farsighted auto insurance companies will weather the transition by focusing on workforce transformation, making sure they are ready for the coming changes.
Authorities agree that Artificial Intelligence technologies will bring vast changes to any industry it touches. Some herald these changes while others have pessimistic outlooks. According to Accenture’s Future Workforce Survey – Insurance: Realizing the Full Value of AI, executives have turned the corner with Artificial Intelligence investment, with the majority believing intelligent tech will completely transform their industry and is vital to differentiate their companies from the competition. Contrary to what some doomsayers predict, these executives see job growth not contraction due to AI implementation which will trigger business growth. Accenture’s econometric modeling anticipates an average 17% growth for insurers who implement AI platforms into their businesses in the next four years. IDC research forecasts investment in AI will continue to grow at more than 50% annually through 2020.
AI goes beyond a set of tools to become more efficient, make capital more productive and reduce headcount. It changes jobs from a collection of tasks to putting human ingenuity to use. Well publicized are AI’s inroads into faster underwriting, quicker claims and improved customer service. To capture the full impact of AI, insurers will need to invest in reskilling employees to be ready to integrate AI and put it to novel uses.
The report predicts jobs will emerge under Artificial Intelligence for trainers, explainers and sustainers. Trainers to feed information and teach the intelligent machines, explainers to interpret AI results and communicate them to customers, and maintainers to steer the AI, keeping it in line with ethical standards and business goals. Employees welcome Artificial Intelligent systems with 61% believing it will improve their jobs and 87% feeling confident they will be able to work with the new technologies. One hurdle to reaping the benefits of AI may be the knowledge gap between the skills of the current workforce and those needed for human-AI collaboration.
Machine learning and deep learning, both primary aspects of AI will be mainstream within the next couple of years. To assure they are not outperformed by competitors adopting AI, insurers should take action–
Artificial Intelligence can be applied in subtle ways within the insurance enterprise to go beyond simple automation to lighten workloads. It can elevate employee capabilities that unlock new value.
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