In the era of digital technology like today, when data is spread everywhere, open source protocols will appear to ensure data can be shared and used throughout the industry. Various public and private entities will jointly create an ecosystem to share data for several use cases under the general regulatory and cyber security framework.
For example, data that can be charged can be transported directly to insurance operators, and automatically connected and can be available through Amazon, Apple, Google, and various other consumer device manufacturers. Artificial intelligence technology is now starting to overhaul the landscape of all businesses going forward, including the insurance industry. Following this projected trend will occur in the insurance business for the next decade:
Progress of cognitive technology
Convolutional neural networks and other in-depth learning technologies currently used primarily for image, sound, and unstructured processing will evolve to be applied in a variety of applications. This cognitive technology, which is loosely based on the ability of the human brain to learn through decomposition and inference, will be a standard approach to processing very large and complex data streams that will be produced by “active” insurance products that are associated with individual behavior and activities.
With the increasing commercialization of these types of technologies, operators will have access to models that constantly learn and adapt to the world around them – enabling new product categories and engagement techniques while responding to underlying risk shifts or real-time behavior.
Insurance status in 2030
AI and related technologies will have a seismic impact on all aspects of the insurance industry, from distribution to guarantee and pricing to claims. Advanced technology and data have affected distribution and underwriting, with policies being priced, bought and tied almost in real time. An in-depth examination of what looks like insurance in 2030 highlights dramatic changes in the entire insurance value chain.
In industrial settings, equipment with sensors has been everywhere for some time, but in the coming years will see a large increase in the number of connected consumer devices. Penetrating existing devices (such as cars, fitness trackers, home assistants, smartphones, and smart watches) will continue to increase rapidly, joining new, ever-expanding categories such as clothing, eyewear, household appliances, medical devices and shoes.
The new data created by this device will enable operators to understand their clients deeper, produce new product categories, more personalized prices, and deliver more tangible services. For example, a usable device that is connected to an actuarial database can calculate a customer’s personal risk score based on daily activities as well as the probability and severity of potential events.