The Theme last week was P&C InsurTech trends in the industry.
The Theme this week is Artificial Intelligence trends in Insurtech. AI has always been a critical subject of not only InsurTech, but also the whole digital age. Let’s see some AI-related Insurtech news this week.
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For this week we bring you three stories illustrating the theme of Artificial Intelligence trends .
Story 1: German Insurer DFV Eyes IPO in Bid to Disrupt Allianz & Co.
Extract, read more on Bloomberg:
“With ambitions to challenge insurance giants like Allianz SE, newcomer Deutsche Familienversicherung AG needs 100 million euros ($116 million) in fresh funds to finance its expansion plan. An initial public offering is one path that Stefan Knoll, founder and chief executive officer, is considering.
DFV uses artificial intelligence to decide which insurance claims are legitimate and which are not. In partnership with Frankfurt-based startup Minds Medical GmbH, it developed an algorithm that can read so-called ICD-10-Codes, used by doctors and hospitals to categorize their bills.”
The news was from June, a recent interview on DFV founder Dr. Stefan M. Knoll was released on InsurTechnews, one of the biggest feature of DFV is that they use AI to process claims.
Editors Note: medical insurance claims has long been a hairball of complexity that causes a lot of pain for customers/patients. The most broken big market today is America, but the politics around Health Insurance are so divisive in America, that it is possible that the breakthrough will come from another market like Germany.
Story 2: Insurers must think strategically about AI
Extract, read more on Digital Insurance:
“Much of executives’ enthusiasm is justified. AI is already being deployed in a range of arenas, from digital assistants and self-driving cars to predictive analytics software providing early detection of diseases or recommending consumer goods based on shopping habits. A recent Gartner study finds that AI will generate $1.2 trillion in business value in 2018—a striking 70 percent increase over last year. According to Gartner, the number could swell to close to $4 trillion by 2022.”
Despite the growth momentum, AI is unlikely to help insurers yield big results in the short term. The decision on when and where to adapt AI will be a key decision senior executives have to make.
Story 3: Huge rise in insurtech patents
Extract, read more on ITIJ:
“According to analysis from global law firm Reynolds Porter Chamberlain (RPC), 2017 saw a 40-per-cent jump in the number of insurtech patents being filed worldwide. RPC found that 917 insurtech patents were filed globally last year, compared with 657 in 2016.
Telematics, artificial technology and machine learning, and P2P insurance were among the most frequent subjects of patent protection last year.”
Telematics, artificial technology and machine learning all involve a certain degree of AI. And the growth of patent numbers signifies a positive growth on InsurTech adaption.
AI application in Insurance is still premature, but Rome was not built in one day, there will be a process. And it’s good to see that insurers featuring AI have been well received by the capital markets. This can inspire more startups and insurers to adapt AI.
Zarc Gin is an analyst for Warp Speed Fintech, a Fintech, especially InsurTech-focused Venture Capital based in China.
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