There is a hard debate on AI/ML impact in the Insurance industry. A group of experts argues on the use case of what happened if everything gets automated? The failure rates should substantially come down. An automated car is expected to make very less error than the human-driven cars.

When the errors are less then the amount of risk will be less. In that case, the need for insurance should come down. This may become a reality but that’s a long shot.

I see a few other immediate impacts in the Insurance industry due to the emergence of AI/ML. This is definitely not questioning the existence of the industry. Instead, helping the products and brands to serve their customers better. This new normal helps the brands to retain their value and ensure their customer’s happiness. Let’s understand how is this happening….

As you know the Insurance business broadly has two major segments. That is the Insurance sale and claim. AI/ML plays a significant role now in both segments. It helps the business to do behavioral analytics and customize the most appropriate policy to the user. No more full list pricing. Not even special, bundle or even volume pricing. Customization to the level of an Individual or specific feature of the business is a possibility now. This gives huge cost savings to the policyholder.

Very importantly, the insurance premium should become cheaper and affordable. The affordability helps the needy to get covered and that brings confidence in life/business. This improves the quality of life and that’s the best use of technology. Isn’t it?

The inclusiveness and the policy for everyone/every business boosts the brand value to skyrocket. While the premium value comes down the inclusiveness brings volume and that brings the equilibrium. CPQ is no more a week-long exercise.