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Some insurers are seeing a return on their investment in artificial intelligence



June 15, 2018 10:30

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Nearly half (48 %) begin to see or get a good return on their investment in artificial intelligence, shows a survey conducted by Insurance Nexus with 250 insurers operating in Canada. In contrast, 24 % of companies surveyed say they do not yet see a return on their investments, and 16 % do not believe in getting one in the next two years.

“The results shed light on the reality that a substantial proportion of businesses have not yet seen a return on their investments in analytics. This deserves that the business leaders in analytical focus, ” says Eugene Wen, vice-president and chief actuary at Manulife Financial.

Transformations to come

Almost all companies surveyed (94 %) expect that the artificial intelligence is transforming the insurance industry. Three quarters of businesses who invest in artificial intelligence and learning machine plan to increase the amounts being allocated, reveals the study.

Nearly half (48 %) of insurers believe that the transformations on their role in everyday life, brought about by artificial intelligence, will occur over the next two years, while 18 % believe that these transformations are already underway. Insurance Nexus supports only a little more than one-third (34 %) expect that changes are coming in the next five years and more.

Investment in growth

Of all the insurers who currently invest in artificial intelligence, 74% say they intend to increase the value in the next six months. The sectors of automation (26 %), learning by machine (24 %), the structure of the data (16 %) and telematics (12 %) are in particular those in which the insurers invest more for the same period of time.

The survey also shows that the tools that insurers believe that will lead to the greatest transformations in the industry are the artificial intelligence/learning machine/deep learning (38 %) and data predictive and advanced (34 %), among others.

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If the insurers believe that the advance of artificial intelligence and analytics will have a bigger impact on the underwriting (36 %), it is the same sector as the enterprises are transformed in the course of the next six months (26 %). Among the other sectors in turn, they have appointed the customer service (16 %), marketing and distribution (20 %), claims (20 %) and product development (12 %).

Currently, the survey shows that more than half (53 %) of insurers are using analytics in some or all areas of their business.

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