A recent report from the Insurance Institute of Canada (IIC) has stated that technologies that involve artificial intelligence (AI) and big data analytics will play a pivotal role in reshaping the insurance sector in the next 10 years, and insurers will have to prepare to bring changes accordingly for these anticipated changes. The report, entitled "AI and Big Data: Implications for the Insurance Industry in Canada," has noted the importance of both AI and big data.
The report further says that AI and big data are expected to transform the industry in bigger and better ways. They present multiple opportunities, particularly in supporting underwriting decisions, investment and claims management, event marketing, and hiring practices. Both technologies will harness the full power of data to anticipate and serve customers' needs and requirements in a better way.
Big data, which utilizes various tools to analyze complex mass storage of data, will use current technologies to allow the insurers to use real-time analytics to understand their customers' needs better, track industry trends, and make better-informed decisions on various aspects like claims, pricing, and operations. IIC stated that these new technologies would facilitate new tools and systems in the insurance sector.