Insurance 2030—The impact of AI on the future of insurance
Published 12 Mar 2021 · McKinsey · Ramnath Balasubramanian
Overview
AI is set to transform the insurance industry by 2030, shifting from a 'detect and repair' model to 'predict and prevent'. This evolution will impact claims, distribution, and underwriting, requiring insurers to adapt to new technologies and data-driven processes.
Key Insights
- Explosion of Data: By 2025, there will be up to one trillion connected devices, providing insurers with vast data for personalized pricing and real-time service delivery. (World Economic Forum, 2015)
- AI in Underwriting: Underwriting will become automated, reducing processing time to seconds, supported by machine learning models. (McKinsey, 2021)
- Claims Automation: Over half of claims activities will be automated by 2030, increasing efficiency and accuracy. (McKinsey, 2021)
BFSI Relevance
- Why Relevant: AI will redefine insurance operations, impacting efficiency, customer experience, and risk management.
- Primary Sector: Insurance
- Subsectors: Life Insurance, General Insurance, Claims Processing
- Actionable Implications:
- Invest in AI technologies and data analytics.
- Develop skills and talent for AI integration.
- Adapt business models to leverage AI-driven insights.
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