Artificial

Intelligence
in the
Insurance Industry
Baibhav Burman (C015)
Neha Gupta (C036)
Saurav Dan (B050)
Supratim Datta (C061)
 Insurance Types of Insurance

Insurance  Protection from

financial loss
Insurance  Risk management in
the form of insurance contracts
Basic Concept 
One party guarantees payment for
an uncertain future event.
Another party, pays a smaller
premium to the insurer in
exchange for that protection.
Industry leaders in Insurance & Their Traits

Net Premiums Written Net Investment Income

AIA
Group
MetLife Allianz
SE

Underwriting Profit Capital surplus

ING
Group
Insurance
AIG
Sector

China Life
Combined Ratio Insurance AXA Solvency Ratio

Berkshire Hathaway
Future of AI in Insurance Sector
Personalization
01 Tailor-made insurance
products will attract more
03
customers at fairer prices..
Ease
AI solutions can make it
easier for customers to
interact with insurance
companies.

Flexibility
02 Flexible insurance such
Cross Selling
as on-demand pay-as-
you-go insurance, and
premiums that
04 Discover new revenue
streams as AI-driven
automatically adjust in analysis opens up new
response to accidents, business and cross-
customer health, etc. selling opportunities.
Major challenges faced by the insurance
companies:

Reaching out to
prospective customers at
the right time.

Providing the right set of

products that suit
customer requirements.

Fast claim support to loyal

customers and rejection of
spurious claims
Suitable Handling
1 Timely Reach 2 Products 3 Claims
Possible Solutions
Automated Claim Support Insurance Chatbots

Lot of claims have standardized documentation & do Customers need an intelligent and interactive
not need extensive human review. Deploying bots to platform that not only executes a transaction but
review claims will provide customers with instant also educates them on the nitty-gritties of
claim settlement. insurance buying.
Possible Solutions
Dynamic Underwriting Predictive Analytics

Based on previous year claims, hospitalizations

Insurance premium can be determined by
instances, renewal history and other customer
bots rather than actuaries sitting behind the
data, predictive algorithms now provide incentives
desk.
to customers to improve wellness
 Big Data in Insurance Industry
Customer Acquisition & Retention

By analysing the data generated by people via Based on customer activity, algorithms can
social networks, insurance companies can increase identify early signs of customers’ dissatisfaction
their efficiency by creating targeted marketing so you can quickly react and improve your
companies that will help to acquire new customers. services.
Big Data in Insurance Industry
Risk Assessment Fraud Prevention

Big Data technologies can increase the Using predictive modelling, insurers can
efficiency of the risk assessment process compare a person's data against past
by using methods like predictive modelling fraudulent profiles
Big Data in Insurance Industry
Cost Reduction via Automation Personalized services and pricing

Big Data technology can automate many

The analysis of unstructured data can help
manual processes, making them more
to offer services that will meet the
efficient and reducing the costs spent on
customer's needs
handling claims and administration
Possible Big Data Stack

Visualisation
Data Mining
Tableau
ETL
H2O
MapReduce
v2 Flume
Data
Warehousing Sqoop
YARN
HDFS
Hbase
Hive
 Challenges & Mitigation for AI in the Insurance Industry
• Data Management - Many insurance companies
struggle to process and analyse even traditional data.
• Data Ownership - Customers may argue they have
rights over their personal data and need access to
historical data on their claims history to switch insurers
at renewal
• Regulation - The insurance industry was one of the first
business sectors to be regulated and it continues to be
closely scrutinized by public authorities worldwide
• Data Security & Fraud - As IoT becomes more
widespread it will attract more potential for
cyberattacks and fraud
• Disruption to Existing Insurance Business Model -
Insurers will encounter new competitors who are
already focused on the AI and IoT opportunity.
Questions?

Thank You