Tällt Ventures – a Bristol-based data-driven intelligence and innovation company – has released a new in-depth report on artificial intelligence’s (AI’s) impact on the insurance industry.
With over $1.35 billion invested into insurance-focused AI startups in the past five years, investment into these businesses from the world’s most successful global VC firms has almost doubled since January 2016.
“The need for large scale, established insurers to sit up and take note is clear”
Following such a dramatic leap, the report has analysed AI
Harry Clarke Head of Research at Tällt Ventures (pictured left) explains: “AI capabilities will improve dramatically in the next five years. Due to the nature of much of the technology discussed within the report, the application potential and capabilities of AI systems will exponentially improve as they learn from the data they are fed.
“The need for large scale, established insurers to sit up and take note is clear. Market share is at risk for those who ignore the improvements to efficiencies, customer interaction and risk selection by not embracing these AI technologies.”
The full report, which is available on the Tällt Ventures website, reveals that the exponential growth in insurance-focused AI startups means, unless they are ready to embrace new innovation, many insurance sectors should prime themselves for potential take over – including claims management, underwriting risk, customer experience, virtual assistance, compliance and administration.
For example, US-based AI insurance startup Lemonade is the highest funded AI venture in the report, with a total raise of $60m. The startup, focussed on the claims sector has created an AI bot that will craft the perfect insurance for you – without a consultant in sight.
“The hurdle to be overcome is willingness to evolve strategies and invest in disruptive innovation”
With this in mind, the report highlighted that, despite ‘artificial intelligence’ and ‘machine learning’ becoming industry buzz words, a lack of technological understanding is holding the industry back from making use of the new technologies available.
Corporates are taking note however, with Taunton-based health insurers Western Provident Association recently deploying its ‘Precision Analytics’ which offers customers access to their health scheme data as a no cost added-value service.
As the report mentions, the mass startup experiementation taking place in the AI space is showing the less-flexible corporates just what works and what doesn’t – which is highly valuable in itself.
Harry tells us: “Our report illustrates there is no shortage of potential for the application of AI within insurance. The hurdle to be overcome, however, is willingness to evolve strategies and invest in disruptive innovation – whether that’s building, partnering or acquiring.”
Tracking over 5 million startups globally, Tällt’s latest report gives unique insights into the emerging insurtech market offering analysis on the latest technology, trends and startups to watch.
Read the full Insuretech Disruption Trends – Artificial Intelligence report from Tällt Ventures for more detailed insights. You can also find out more on the Tällt Ventures website or by following them on Twitter here: @TalltVentures.