In brief, insurance industry is all about measuring risks, calculating premiums, settling claims and preventing loss of both the parties. Till date, all these tasks are performed based on manually collected data and their analysis based on certain pre-defined parameters. As a result, there is always a chance of errors/mistakes, which leads to incorrect premium calculation, over claim or under claim, incorrect settlement etc. To prevent this, AI and IoT plays an important role. IoT devices are helping to collect real time data and AI tools are utilized to analyse those data and provide accurate insight. For example, fitness trackers are collecting real time health data of an individual, home IoT devices are monitoring 24×7, connected car devices are collecting driving habits of an individual etc. And, all these data are analysed by AI tools and algorithms. The output is a win-win situation for both the parties (insurance company and the individual).It helps to calculate exact risk areas, optimum premium, customized plans etc.
In this article, we will focus on the different sides of AI, IoT and their impact on insurance industry.
Sections: Following are the approximate sections (work in progress)
- Role of IoT in insurance industry
- Role of AI in insurance industry
- How AI and IoT duo can help insurance industry
- Some practical use cases
- What is the future?