Artificial intelligence (AI) will help insurers underwrite $20bn (£17bn) worth of premiums by 2024, a more than 1,500% increase on the £1.3bn forecast for this year.
That is according to a new report from Juniper Research, which said that AI would streamline underwriting processes, reduce operational costs, and result in faster consumer onboarding.
Increased use of telematics in the motor, home, life and health insurance sectors will be key to this, along with a rise in Internet of Things (IoT) management tools.
The researchers forecast global revenues from telematics to balloon from $1.2bn in 2019 to $5.4bn by 2024, and for AI cost savings to soar from around $340m to $2.3bn.
“This growth will be driven by increasing support from automotive original equipment manufacturers (OEMs) as part of wider connected car strategies,” Juniper Research said.
“The motor insurance industry will have the largest cost savings, accounting for over 60% of total savings globally by 2024, enabled by the significant uptake of AI-based InsurTech premiums.”
The researchers said that rising vehicle numbers in the Far East and China would drive telematics growth, increasing its revenue share from 15% in 2019 to 33% in 2024.
They also identified the healthcare industry as a sector primed for disruption, and recommended that insurers target AI to enable competitive pricing and cut costs.
This comes after Juniper Research forecast the number of interactions between patients and AI-powered ‘chatbots’ to increase from 21 million each year to 2.8 billion by 2023.
And this is set to free up staff time and save countries’ healthcare systems around $3.7bn, alleviating the mounting pressure brought on by ageing populations.
“Advances in natural language processing (NLP) will enable insurers to leverage the abundance of existing unstructured data, allowing them to manage and create value from more data sources, creating streamlined processes,” Juniper Research added.
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