It's been called many things over the years.
The Black Gold of Insurance.
The New Oil for Insurers.
The Fuel of Digital Transformation.
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But no matter what it's called, data is truly
revolutionizing insurance companies around
the globe.
With an industry like insurance - one that is
relatively mature, with moderate growth
opportunities and hampered by a volatile
economy and highly regulated business
environment - it's increasingly important to
have a competitive edge. That's why data -
and the technology it powers - is playing an
ever-greater role in an insurer's ongoing
operations. The increasing use of data
analytics, artificial intelligence (AI) and
machine learning (ML) software are enabling
insurance carriers to drive transformation
and innovation.
Artificial Intelligence, machine learning and
analytics used to be the stuff of fantasy and
science fiction (remember the HAL-9000
computer from the movie: 2001: A Space
Odyssey?) No longer. These technologies are
big business today and are beginning to
change the entire landscape of insurance.
The International Data Corporation (IDC)
forecasts global spending on AI technology
(hardware, software and services) to grow
15.2% this year -- up to $341.8 billion.
Furthermore, the market is expected to
accelerate in 2022 with 18.8% growth and
remain on track to break the $500 billion
mark by the year 2024.
"Disruption is unsettling, but it can also serve
as a catalyst for innovation and
transformation. 2020 was the year that
accelerated digital transformation and
strengthened the value of enterprise AI," said
Ritu Jyoti, group vice president for AI and
Automation Research at IDC. "We have now
entered the domain of AI-augmented work
and decision across all the functional areas
of a business. Responsible creation and use
of AI solutions that can sense, predict,
respond, and adapt at speed is an important
business imperative."
For insurers, this is just the tip of the iceberg.
