Insurance is Hot in Asia, AI as a Double-Edged Sword, Impact of Digital Twins, AI Aiding Disaster Responses
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Insurance is hot in Asia!
Sonr has released its annual ranking of the world’s leading startups, scaleups and innovators driving change across insurance. 14 out of 17 countries making it to “Top 100 Insurtech Companies of 2022” are from Asia namely:
1. Bolttech ????
2. Ping An Good Doctor ????
3. ZhongAn ????
4. Digit Insurance ????
5. Singlife with Aviva ????
6. Waterdrop ????
7. Qoala ????
8. Turtlemint ????
9. Policybazaar ????
10. Acko General Insurance ????
11. Sunday ????
12. OneDegree ????
13. The Carevoice ????
14. Bowtie ????
The Sonr Index, incorporates millions of data points across key performance indicators. Looking at the list, we’ve got 4 from China, 4 from India, 2 from Singapore, 2 from Hong Kong, 1 from Indonesia, and 1 from Thailand.
A common denominator among these countries is being a digital enabler across the entire value chain.
AI is now incorporated in the daily operations of different industries. ML is also one of the priorities of insurance leaders.
If we are to weigh the pros and cons, AI has provides many advantages. Although, truth still remains – it’s a double-edged sword.
One of the major concerns would be gaining public trust and how ethical AI is. Organizations must abide by the General Data Protection Regulation (GDPR), a law governing data protection and privacy in the EU.
The first international regulation for AI is believed to be the EU AI Act, which was initially suggested in 2021 and is anticipated to be passed in 2024.?
How can insurers keep AI ethical?
- Consider every aspect of their data ecosystem, including the insurtech suppliers they work with.
- Make intelligent decisions at scale without human intervention because of the enormous quantities and different sources of data.
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- Utilize transparent AI in explaining specific choices made by their AI models to clients and staff.
- Provide clear explanations behind decisions and assessment if using AI models.
Using simulation, machine learning, and reasoning, a digital twin is a virtual representation of an object or system that spans its lifecycle and is updated from real-time data.
In simple terms, a virtual copy of a process, product, or service – a scenario analysis.
A digital twin could help prevent delays and damages brought by unprecedented events, natural disasters, and others by virtualizing possible scenarios based on information models and real-time data, not just historical data.
In what ways can a digital twin help insurers?
1. Data contextualization and visualization.
2. Mitigate risks, reduce damage, and prevent disasters.
3. Enhance key business processes, including underwriting, fraud detection, customer engagement, and claims management.
4. Show predictive maintenance and reduce the risks of fraudulent claims.
Technologies advancing the use of digital twins include IoT, virtual reality, cloud computing, artificial intelligence, and 5G.
However, a digital twin is as good as the data it uses. Therefore, data should both be easily accessible, and reliable to bring about the most accurate scenario.
We’ve noticed how natural disasters have been more frequent and severe the past years and we’ve witnessed its devastating effects and ballooning damages on households and businesses alike.
"If you look back over the last 100 years, the number of natural disasters has increased tenfold." ---?Brad Cowan, EVP for business development at Paul Davis
At this point, preparation is more important. We can’t be too sure that the industry can afford to stretch out its resources on every single event of a disaster.
Insurtechs like Tractable focused on preventing and responding to natural disasters using AI.
How can AI help natural disaster responses?
1. Predictive analysis of the intensity of the disaster and pinpoint locations that would be hard hit.
2. Insurers in the area can also prepare and allocate resources beforehand.
3. Speed up claims and communication in the event of natural disasters
4. Verify insurance claims accurately and avoid falling victim to fraud
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