The Fourth Industrial Revolution age is beginning to shape how businesses function and leaders need to examine how society and business should fundamentally and structurally adapt in line with today’s vastly changed world. The reality is society is facing more risks today than a few years ago, from security of information to the impact of artificial intelligence (AI) – aka the intelligence shown by machines – on jobs.
It would be reckless for any business not to watch these trends and developments very closely. Over the coming years, the innovation-driven economy will continue to fuel fast-paced change and technological disruption. Every sector – health, communication, production, transportation, insurance etc. – will not only be impacted but will be transformed. This will have huge implications for insurers globally.
Taking health care as an example, CIO.com reports that “the AI market is set to experience a compound annual growth rate of 40 percent through 2021, largely because AI has the potential to improve health care outcomes by 30 to 40 percent while simultaneously cutting the costs of treatment in half”. The implications for medical aid and health insurance will be fundamental.
And according to prescouter.com, “the use of AI to predict the paths of pedestrians and cyclists will decrease traffic accidents and injuries”. If this is true, it would have a major impact on car insurance underwriting.
So as AI and automation continue to advance, the insurance industry is developing new ways to assess and underwrite risk. There is so much to consider and define for insurers. Many of our typical claims of today will change going into the future. For e.g.: