14th August 2019

Artificial intelligence(AI) will help insurers underwrite $20bn(£17bn) worth of premiums by 2024 says new research
Trend

Artificial intelligence(AI) will help insurers underwrite $20bn(£17bn) worth of premiums by 2024, a more than 1,500% increase on the £1.3bn forecast for this year, according to a report from Juniper Research, reported on The Actuary Predictions website..
The report predicts that AI would streamline underwriting processes, reduce operational costs, and result in faster consumer onboarding.
Increased use of telematics in the motor, home, life and health insurance sectors will be key to this, along with a rise in Internet of Things(IoT) management tools.
The researchers forecast global revenues from telematics to grow from $1.2bn in 2019 to $5.4bn by 2024, and for AI cost savings to soar from around $340m to $2.3bn.
“This growth will be driven by increasing support from automotive original equipment manufacturers(OEMs) as part of wider connected car strategies,” Juniper Research said.
“The motor insurance industry will have the largest cost savings, accounting for over 60% of total savings globally by 2024, enabled by the significant uptake of AI-based InsurTech premiums.”
The researchers said that rising vehicle numbers in the Far East and China would drive telematics growth, increasing its revenue share from 15% in 2019 to 33% in 2024.
Advances in natural language processing(NLP) will enable insurers to leverage the abundance of existing unstructured data, allowing them to manage and create value from more data sources, creating streamlined processes, said Juniper Research.

Juniper Research Trends(5 articles)