The life insurance industry has always been data rich.
The insurers make heavy use of data in actuarial tables and also gather vast amounts of health and lifestyle data.
Now artificial intelligence systems is set to revolutionize how players in the life insurance and life settlement markets use the data.
AI in Life Insurance
An AI system starts by identifying patterns in large sets of data. t uses what it finds to make data-driven decisions.
The system can automate tasks that are repetitive, complex, or costly for humans to perform.
In the life insurance industry, AI systems are already helping with risk assessment and fraud detection and claim process.
Chatbots and virtual assistants improve life insurers' customer service, by providing round-the-clock support.
In the future, AI systems could lead to more accurate underwriting and pricing strategies.
A real-world example: Imagine a prospective policyholder who enjoys skydiving but chooses not to disclose this hobby on a life insurance application.
An AI system could analyze the applicant's social media presence and find the applicant's posts about skydiving.
