You need to get to a meeting and enter the destination into Google Maps. Your insurer instantly calculates the best route based on risk and traffic patterns and sends you the premium for the trip based on your driving patterns and claims history. It also suggests times when the risk and premium would be lower… And adjusts your life insurance premium if you drive badly or stop for a sneaky burger on the way. This is what short-term insurance could look like in just 10 years!
Much of the tech that would enable this future already exists. Policies are already being priced according to individual behaviour, which allows safer drivers to pay less for car insurance and healthier people to pay less for medical insurance. At King Price, we now have ‘black boxes’ which take an hour to run a book that used to take between three and four months to run. Our black boxes not only predict risks and loss ratios more accurately than ever, but any of our actuaries can run this analysis on their desktop.
It could be said we’re a data business that happens to sell insurance. AI technology processes and interprets huge volumes of data to deliver sea changes in the way our clients experience and pay for insurance. We will soon be able to approve some claims within seconds, without a human even assessing the claim, based purely on our clients’ profile and the likelihood of the claim being valid, all driven by AI.
AI is a hugely misunderstood and emotive topic but let’s be clear: there’s no doubt AI will become an integral part of every aspect of insurance in the next few years. I, for one, cannot get enough of it.