Impact of AI on Insurance

The insurance industry is on the verge of a seismic, tech-driven shift, fuelled by the integration of automation, deep learning, and external data ecosystems. Insurers must understand how these drivers will change business landscape and respond accordingly. New distribution models will emerge, purchasing insurance will get faster...and easier; underwriting will fundamentally change; and while claims processing will likely remain an insurance function, AI and automation will change the way it is done! Here are four areas that McKinsey suggests insurers focus on:

Get smart on AI-related technologies and trends

Develop and begin use of a coherent strategic plan

Create and execute a thorough data strategy

Create the right talent and technology infrastructure

I would add work out how to harness the dynamism, agility and capabilities of early stage businesses.