How Your Insurance Quote Is Powered By Artificial Intelligence Posted on : Jan 21 - 2019

In today's fast-paced world we're continually faced with speed bumps that slow us down and let's face it - insurance is one of them. Still, the days of phoning around and repeating your details are long gone. From comparison sites to timely reminders from the companies themselves - getting an insurance quote is becoming cheaper and easier. And it's mainly down to the adoption of artificial intelligence.

From black boxes to chatbots, the insurance industry is jumping feet first into data - and your wallet is thanking you.

Profound impact

CEO and co-founder of AMPLYFI, Chris Ganje, believes that using AI gives insurers the speed to keep up with modern day life. He said:

AI is having a profound impact on the insurance industry across the board from strategy and policy pricing to marketing and administration. AI is able to digest and analyze vast datasets at unprecedented speeds and accuracy. For insurers, this is enabling benefits on a number of fronts, such as speeding up quotes and pricing policies, enacting faster claims settlements, better fraud detection, and better customer profiling, for example, identify safer drivers through telematics data.”

Driven by millennials

Like with many financial services, consumers are shifting towards digital-first products. But for Richard Hartley, CEO & Co-Founder of Cytora, for him it's millennials that are truly in the driving seat.

Millennial consumer behavior is forcing irreversible changes across financial services leading to the emergence of digital-first and app-based services for banking, loans, mortgages, and investment. As the millennial cohort start their own companies and move into decision making roles in business, commercial insurance is beginning to undergo the same revolution.”

This all adds up to a more personalized quote market believes Ben Little, the founder and Director of Fearlessly Frank. He thinks that AI is enabling insurers to offer more customized products to appeal to a broader spectrum of clients. This “Insure-tech” uses digitalization and even AI to create new products.

Two of the first startups to launch in this space were the Lemonade and Cuvva apps which targeted the home and car insurance markets. More recently came Sherpa, a new AI-driven insure-tech platform, with the aim of breaking down the categories and providing a more holistic offering. By using a bespoke algorithm to build a personalized data profile, Sherpa gives each user a “score,” telling them their risk and cover needs across all insurance types. View More