Friday, May 24, 2024

The Role of Artificial Intelligence Across the Property Insurance Ecosphere


This post is part of a series sponsored by CoreLogic.

Over the last couple of years, Artificial Intelligence (AI) has changed how everyone lives, works, and plays.

More than just a trend, AI is the ability of a machine, computer, or software program to mimic human logic and thought patterns to make determinations and take actions. AI technologies are designed to solve problems and make decisions based on data they process and analyze.

Regardless of your industry, AI will continue to have massive impacts on your job. This is true even for professionals in the slow-to-digitize property insurance industry. An increasing number of AI-driven technologies are designed for underwriters, claims professionals, and property restoration contractors and technicians. (In their latest eBook, CoreLogic® looks deeper into how AI will continue to impact the world of property insurance and everyone who operates in it).

Insurtech—technology designed for the insurance industry— is growing. As Insurtech evolves, it will incorporate AI more. Already, companies in this ecosphere are regularly using the following types of AI-based solutions:

  • Data collection tools for underwriting risk assessment
  • Chatbots to provide automated customer service for policyholders
  • Data and storm modeling for predictive weather forecasting
  • Virtual property inspections
  • Drones for the collection of aerial imagery

It is important to understand that AI can change jobs for the better. It can make work more meaningful and fulfilling for professionals across this industry by taking over manual, repetitive, administrative tasks. In turn, people can focus more on the tasks that only humans can do— like developing meaningful relationships with partners and customers.

Levels of AI Investment

There is a broad spectrum of AI software platforms and applications and no “one size fits all” approach. Depending on specific business and customer needs—and the relevant state and federal regulations—there are different levels to which a company can implement AI.

A lower-level investment in AI involves implementing tools that do not directly impact customers. For example, systems with lower degrees of AI are technologies with functionalities limited to automating, streamlining, and optimizing workflows where no decision-making process needs to occur.

Meanwhile, higher-level investment in AI involves technology that is more active in decision-making.

Determining How to Leverage AI

There are many factors to consider when determining the optimal amount or types of AI technologies to integrate into the digital ecosystem of a property insurance company or a restoration contractor. Companies in the property insurance industry must be especially deliberative about how to incorporate AI into their operations because they operate in such a highly regulated environment.

A key step toward determining your level of investment in AI is conducting a risk/benefit analysis of AI adoption to identify where your business might be vulnerable. Decision-makers, data scientists, and IT leaders should consider the following questions:

  • How will AI impact our customers?
  • Does the quality of our data merit the adoption of an AI application? And what is our willingness and ability to invest in data oversight?
  • Does the AI application fit into our compliance/regulatory framework?
  • Based on how much we plan on scaling our business, can we afford NOT to invest in AI?

With accurate and informed answers to these questions, it will become much easier to determine how to incorporate AI into your workflows and, thus, the level of investment.

Regardless of your level of investment in AI, there must always be a balance between human operation and technology. People must ultimately be behind all the decision-making, even when AI helps determine by analyzing data.

To learn more about AI and your options for incorporating it into your digital ecosystem, dive into CoreLogic’s eBook, ‘The Role of Artificial Intelligence Across the Property Ecosphere.’

Read it now.


©2024 CoreLogic, Inc. All rights reserved. The content herein and in the eBook is for informational and educational purposes only and may not be reproduced or used without express permission. While all of the CoreLogic content herein and in the eBook is believed to be accurate, CoreLogic makes no guarantee, representation, or warranty, express or implied, including but not limited to as to the completeness, accuracy, applicability, or fitness, in connection with the content herein and in the eBook and assumes no responsibility or liability whatsoever for the content herein and in the eBook or any reliance thereon. CoreLogic® is the registered trademark of CoreLogic, Inc. or its affiliates or subsidiaries.

Topics
InsurTech
Data Driven
Artificial Intelligence
Property

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