The AI in Insurance Market Ecosystem is Expected to Grow at a CAGR of 23.5% by 2027. Artificial intelligence in Insurance Market is disrupting every phase in the value chain of insurance including virtual agent and chatbots that provide customized product recommendations and manage customer service inquiries. It also makes automated claims processing and claims estimates more quickly and accurately. InsurTech is using AI capabilities to create a new range of innovative products, such as instantly customizable life insurance and on-demand property coverage. While some key insurance companies are investing aggressively in AI, most insurers are moving slowly, as they are not sure about how to deploy these technologies in the best possible way. In 2018, only 51% of insurance executives claimed AI technologies to be extremely or very important to their companies’ success. But as compared to other industries, this number was very small.

According to AllTheResearch, the global AI in Insurance Market will see substantial growth by USD 16.5 billion in 2023. AI Insurance is expanding at a faster rate to a wider range of countries. Insurance companies like Insurify, Ccc, Lemonade, Zest finance, Clear cover, and Fly reel have already started using AI technology in Insurance claim, payments, and recommendations. AI can change the outlook of the business model of an insurer by enhancing the speed at which tasks can be carried out with the help of Robotic Process Automation (RPA). RPA helps in reducing repeatable tasks from operational teams and in performing more complex actions It also helps in optimizing the services insurers can provide to customers, brokers, and other external third parties, based on their relationships, preferences, and past interactions.

Figure 1: Artificial Intelligence in Insurance market Ecosystem Snapshot

Even though it is difficult to predict the full utilization of Artificial Intelligence in the Insurance industry and replace specific actions with automated intelligent machines, market leaders are optimistic and confident about the benefits they can derive from its involvement. AI will increase labor productivity by 30 to 35% in 11 western industrialized countries and Japan by 2035. Economic growth is expected to be doubled by 2035. Considering the current scenario, AI-based products will include insurance coverage for smart driverless cars, smart sensors and factories, and cybercrime damages. Additionally, AI will also empower key insurance processes like claims analysis, asset management, risk calculation, and prevention. For example, property damage assessment can be done via the image processing feature of Artificial Intelligence in Insurance. The same machine can be used to make an informed decision about investments based on smart systems.

Figure 2: Artificial Intelligence: Segmentation of AI in Insurance

Application Devices Components Technology Deployment Offering Chatbots & Virtual Assistance Smartphones & Tablets CPU Machine learning Cloud Solutions Fraud Detection Wearables GPU Natural Language Process On-Premise Services Customer Relationship Management Surveillance systems Microprocessor Computer Vision Cybersecurity Workstations FPGA Context Awareness Payment Gateways Autonomous Robots Memory Others Financial Transactions UAV’S/Drones Storage Other Modules

Global AI in Insurance

At the regional level, EMEA recorded moderate growth in the Property and Casualty Insurance (P&C) and health insurance segments. Growth in the American region has been characterized by strong progress in the health insurance segment and moderate growth in the P&C segment. Life insurance is expected to be a bit unpredictable, owing to changes in US regulations. On the other hand, in APAC, the insurance industry grew in all three segments in 2019, with the health insurance segment generating a double-digit growth.

In the life insurance segment, most regions, except the Americas and Western Europe, noticed growth in 2019, but the extent of the growth, as well as the factors responsible for it, varied by region. It is observed that since 2018, Asian countries such as China, Hong Kong, and India have achieved the strongest gains in life insurance segment. Property & casualty insurance has remained stable over the past five years, growing at a rate of 4-5%. It is also expected to grow at 4.2% for the year 2020. At the regional level, the APAC region accounts for only 23%. The P&C insurance market has been the key driver of growth, growing at an average rate of 9% per annum (p.a.) and is estimated to grow even faster in the future.

Figure 3 – AI in Insurance Market Statistics Glimpse:

There are many trends that are having an impact on the market forecast. These, when evaluated from a company’s perspective, can drive growth. Our numerous consulting projects have generated sizeable synergies across all regions and all sizes of companies.

The major players operating in the global AI in Insurance are as follows:

Company Ecosystem Positioning Total Revenue Industry Region AIA Group Ltd Product Provider $230 billion Financial Services Global AIG Product Provider $0.006 billion Financial Services Global Allianz SE Product Provider $144.7 billion Financial Services Global AXA Product Provider $ 114.1 billion Financial Services Global Berkshire Hathaway Product Provider $247.5 billion Financial Services Global

Very few markets have the interconnectivity with other markets like AI. Our Interconnectivity module focuses on the key nodes of heterogenous markets in detail. Data analytics, Cloud Logistics, Machine learning, and computer vision markets are some of our key researched markets.

Figure 4 – Artificial Intelligence in Insurance Market Major Interconnectivities Ecosystem

A Glance on Global AI in Insurance Trends:

Trends Application Devices Components Technology Deployment Offering Impact Top Chinese banks have introduced two chat assistants, of which one is for answering general queries like banking products and services, especially about mortgage, personal loan, credit card, medical insurance, and travel insurance services, while the other is embedded in Facebook Messenger and it lets customers search for dining discounts and makes recommendations based on consumer preference. Both assistants can communicate in Chinese, English, Cantonese, and a mix of Chinese and English, and use machine learning and natural language processing to continuously improve their abilities to answer customer queries. NLP Solutions 0.57% Chatbots for customer service: Virtual assistants and chatbots can help answer customers' questions regarding auto insurance by using what seems to be natural language processing. The user of the customer service app can message or speak to the software to make enquiry about policy coverage and view billing information and direct them to the appropriate section of their insurance application. Chatbots & Virtual Assistance Services 1.05% The use of machine vision will help insurance agencies automate the claims process. Insurance agents can upload images associated with the claim such as those of a damaged car and estimate how much they think the client should receive as a pay-out based on the photographed damage. AI can then compare the uploaded image to a database of various images labelled with varying degrees of damage and the pay outs associated with them. The software checks if the insurance agent’s pay out estimate is more than the pay out that other clients received for similarly damaged vehicles. If so, it displays a warning to the agent to decrease the pay-out. As a result, the software can reduce the amount of excess money distributed to a client when agents pay claims. Machine vision Cloud 0.01% xxxx xxx xxxx xxx xx xxxx xxx

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