Skip to main content

Artificial Intelligence will Transform the Insurance Sector

Historically, the traditional insurance sector has been reluctant to change established methods. However, the relationship between insurance companies and technology vendors has evolved, as emerging Insurtech offerings disrupt the legacy insurer business model.

The overall insurance market is experiencing significant upheaval, as new technology-enabled solutions impact the prior status quo. As an example, the use of price comparison websites is commonplace and other forms of customer-facing online services are widespread.

However, the internal processes of loss notification, claims management and underwriting have not changed much from those used by insurers many decades ago. Therefore, savvy Insurtech vendors can help to revolutionize outmoded methods and introduce new ideas to the insurance marketplace.

Insurtech Market Development

That said, traditional insurers are now becoming increasingly involved within the Insurtech space, through direct investments and strategic partnerships with startup technology companies.

According to the latest worldwide market study by Juniper Research, the value of artificial intelligence (AI) underwritten insurance premiums will exceed $20 billion by 2024 -- that's up from an estimated $1.3 billion in 2019.

This growth of new AI use cases and software application development will be driven by streamlined underwriting processes, faster customer onboarding and reductions in operational costs.

Moreover, efficiencies in underwriting will be enabled by increased use of telematics and internet of things (IoT) management tools in the automotive, home, life and health insurance sectors.

Insurer's increased access to operational and customer behavioral data will enable enhanced data analysis capabilities, thereby allowing insurers to guard against the potential of evolving risks.


Juniper analysts anticipate that global revenues from telematics will grow from $1.2 billion in 2019 to $5.4 billion by 2024. They forecast that this growth will be driven by increasing support from automotive OEMs, as part of wider 'connected car' strategies.

As the global market evolves, increasing vehicle numbers in the Far East and China regions will drive telematics applications growth, increasing its revenue share from 15 percent in 2019 to 33 percent in 2024.

The research forecasts that industry cost-savings from AI will grow from an estimated $340 million in 2019 to $2.3 billion by 2024, as insurers exploit efficiencies achieved through the automation of resource-intensive tasks.

Juniper predicts that the automotive insurance industry will likely have the largest cost-savings benefit -- accounting for over 60 percent of total savings globally by 2024, enabled by the adoption of AI-based Insurtech premiums and several startup vendors applying AI to great effect.

Outlook for Vertical Sub-Sector Apps Growth

Additionally, the analysts identified the traditional healthcare market as a sub-sector primed for disruption and recommend that health insurers employ AI applications as an effective way to reduce their high operating costs and enable more competitive pricing.

Juniper also anticipates that advances in Natural Language Processing (NLP) will enable insurers to leverage the abundance of existing unstructured data, essentially allowing them to create new value from big data sources. This innovation should result in even more streamlined business processes.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Flexible Working: Why Company Culture Matters

The main reasons for the Great Resignation are obsolete leadership, fearful middle managers, and a toxic culture that hinders employee engagement. Perhaps that's why some organizations are still struggling with the consideration and development of a flexible working model.  They're incapable of evolving to a more enlightened approach to work where employees are treated with respect. They're stuck in a bygone era of the 20th-century industrial revolution where 'shareholder value' tops all other values, and where spreadsheets and financial data analysis drives all key decision making. We should not be surprised that 76 percent of human resource (HR) leaders now feel that hybrid work challenges an employee's connection to organizational culture, according to a recent survey by Gartner. A 2022 poll of HR leaders reveals the most challenging aspect of setting their hybrid strategy is adjusting the current organizational culture to support a hybrid workforce. In fact,

Securing Fintech via Mobile User Authentication

The global COVID-19 pandemic accelerated the development and adoption of online digital services, including mobile user authentication services. This led to more Fintech solutions growth at a rapid rate from 2020 to 2022, as companies started to adopt one-touch verification. These services enable CIOs and CTOs to increase the level of security offered to customers who are concerned about online financial transactions. However, there are numerous other industry use cases that require increased security measures to protect sensitive data. According to the latest worldwide market study by Juniper Research, mobile network operators will generate $27 billion from the termination of Short Message Service (SMS) related to multi-factor authentication in 2022 -- that's an increase from $25 billion in 2021. Commercial SMS Apps Market Development Juniper analysts predict this 5 percent growth will be driven by increased pressure on digital service providers to offer highly secure user authent