AI meets insurance: digitizing the face of compliance and risk mitigation

He noted that “our goal with proactive compliance is to look at the much earlier set of communications and other unstructured data, where some of these bad ideas get started, and that allows us to find things much earlier and do corrective actions like education or improvements to policies…”

A report by KPMG highlights AI’s potential to mitigate risk: “With enough training data, these algorithms can better analyse risk and predict outcomes, adding accuracy to risk models and pricing structures. These solutions are often developed to solve a specific problem, but there is an opportunity to quickly adjust for wider use across the value chain.”

AI not only has the potential to help with regulatory compliance and risk mitigation but to also boost the economy and improve the insurance landscape as a whole.

“Research from McKinsey reveals that Generative AI alone is projected to contribute up to $4.4 trillion to the global economy annually, with insurers expecting gains in productivity, premium growth and underwriting accuracy,” TechRadar reported.