By FINTECH Books Contributor, Tony Tarquini
There is an imperative bearing down on the insurance market to adopt AI or die in the face of InsurTech disruption which could devastate the market. Companies such as Uber and Airbnb disrupt whole industries and create monopolies by wrestling control of distribution, building valuable customer engagement platforms based on highly sophisticated AI algorithms but leave delivery to incumbents or freelancers. This “skimming” redistributes value without growing it in a zero-sum game, which has devastated their target industries.
Facebook and Google have done the same to the creative industries by controlling content but not creating it, while taking the revenues. The insurance industry faces the same challenge and if the existing insurers are not to be relegated to back-end providers, the time to act is now.
There is a threat to the insurance market from AI. How are insurance organisations starting to leverage a new, more practical and viable strand of industrial AI, based on data science, which is controlled by business analysts, not post-grad boffins.
Using sophisticated analytics and decisioning it delivers actionable insight and outstanding business outcomes across their businesses to protect insurers from the fate that occurred in many other markets.