The use of robots ad automation to compel tangible business benefits is not an unknown reality today’s world. Indeed in reality, the IT-enabled robotic process automation (RPA) market has been growing speedily at a CAGR of 60.5% from the year 2014 and is believed to reach US$5 billion by 2021.
Artificial Intelligence i.e. AI has played a major hand in transforming businesses. For large corporate companies and industries, artificial intelligence AI is breeding new avenues for growth and profitability across the globe.
Insurance company which is an old and highly regulated industry have comparatively taken up technological implementations pretty fast. Insurance no longer seems to be abrupt in manual, paper based processes which are slow and expensive.
McKinsey’s estimated a potential annual worth of $1.1 trillion, if AI artificial intelligence is fully implemented in the insurance industry.
With all the benefits and cost saving ratios that AI technology has given, companies are now more keener to adopt this in the years to come.
Benefits of AI
- One major ground on why AI will prove to be crucial is the ever rising “datafication” of business interactions, private life as well as public life.
- AI can be used to effectively measure drivers and trends prevailing in the insurance industry and secure efficiency gains from it.
- Automation in the Insurance industry is assisting insurers by predicting the risk factor with superior accuracy, customizing products and using enhanced foresight to rapidly deploy new products in market.
- It allows organizations to be more nimble and agile, permitting them to deploy new products in accordance to emerging risk.
- Over the coming next 10 years, automation of group operations in the insurance industry is expected to relocate 22.7 million existing jobs and create 13.6 million new jobs in the US economy alone, that will result in a net job loss of 9.1 million jobs or 7 percent of entire jobs in the US. A significant portion of this impactful scenario would be felt across the insurance industry globally, given that 51 percent of financial jobs are projected to be changed by automation by 2019.
- In current scenario, in most insurance firms, the current delivery pyramid is observed to be considerably bottom heavy with the majority of volume-heavy transactions and reporting processes that include regulatory reporting, claims processing, document verification, etc. are being performed by humans.