Insurance News: Data and Artificial Intelligence Shapes the Future of Insurance | Insurance Blog
Lately, the insurance industry has been at the forefront of solving the most pressing challenges of our time. From the devastating wildfires in Los Angeles to the gender pension savings gap, insurance has never been more critical in mitigating risks and providing financial security. In this insurance news analysis, I worked with Deborah McBrearty, Chloe Harmer and Belinda Djamson on how data and AI shape the future of insurance.
The wildfires in Los Angeles are once again a clear reminder of the increase in frequency and severity of natural disasters. Shockingly, only 25% of the losses caused by these wildfires are likely to be insured. Deborah highlights what the world can learn from New Zealand, where 90% of homes are insured cause natural hazards and damage.
Next, we study how innovations in data and AI can revolutionize the insurance industry, especially parameter insurance. A notable example is the use of satellite data to track rainfall levels in key coffee-growing areas to provide farmers with financial relief immediately when adverse weather conditions occur.
Another key issue we discussed is the gender pension savings gap. This gap makes women save less retirement savings compared to men, which is a major problem. In addition, we also found that Chloe and Deborah’s Insights similarly found this gap. Helping women and the younger generation better prepare for their financial futures
Finally, we examine the growing examples of insurance fraud, highlighting the key need for a sophisticated approach to combating in the application and claims phases. Belinda gives us an idea of the steps in which insurance companies can use data and AI to detect and prevent fraudulent activity.
