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McKinsey estimates that
automation can reduce the cost of the claims journey by 30 percent.
In fact, according to a report from UK-based Autonomous Research LLP, AI represents a
potential cost savings of $1 trillion dollars to U.S. companies across banking, investment
management and insurance.
AI and data analytics have the potential to impact every facet of the insurance value chain --
from underwriting to claims to marketing and more. In this paper, we will discuss some of the
important uses for these applications and tools.
Cybersecurity
Few industries collect and manage as much data as the insurance industry.
Policyholder data. Financial data. CRM data. Claims data. And for hackers, it is an environment
that is ripe for the taking.
Statistics indicate that malware is increasing at an alarming rate. And with many insurers
moving their core IT operations to the cloud, the risk of cyberattack has grown exponentially.
In a special report by Cybersecurity Ventures, a global cyber research and publishing firm,
global cybercrime costs is expected to grow by 15 percent per year over the next five years,
reaching $10.5 trillion USD annually by 2025, up from $3 trillion USD in 2015.
Cybercrime costs include damage and
destruction of data, stolen money, lost
productivity, theft of intellectual property,
theft of personal and financial data,
embezzlement, fraud, post-attack disruption
to the normal course of business, forensic
investigation, restoration and deletion of
hacked data and systems, and reputational
harm.
Unfortunately for today's insurers, the
proliferation of multiple data platforms along
with fragmented and siloed IT systems have
not been able to keep pace with the increasing
scale of sophisticated cybercrime.
