Applying artificial intelligence and smart data across the value chain consists of embedding intelligent insights within all business processes to make data-driven decisions (choose the right premium, perform a marketing campaign, claim process...) which optimize both customer experience and P&L. In many cases, even replacing human intervention by automatic machine learning based insights, with the subsequent efficiency.
This field has been described as “the new electricity” or as the “fourth industrial revolution” due to its potential to become a game changer never seen before. AI and smart data is already not only revolutionizing every industry that we know of, but also drastically transforming our society. For instance, our workforce will change dramatically as current jobs will be highly automated but also new ones will be created. And this is just the tip of the iceberg; AI and smart data market is expected to grow to $36.8 billion by 2025 (1).Even if insurance is historically one of the industries with more renowned experience in smartly leveraging data, especially for underwriting and risk management, it is nothing compared with the new paradigm recently unleashed. Artificial Intelligence was coined for the first time in the 1950s but it very quickly hit a number of different barriers, with the available computing power as the main obstacle.