Artificial intelligence (AI) will continue to shake things up in the Australian insurance industry because of its ability to boost efficiencies, reduce costs and improve customer service.
Omid Karr, executive manager of advanced analytics at IAG, lists two broad camps of current AI applications in the insurance industry. 

The first is the generic everyday use of AI which helps us write emails, summarise texts, encode and so on.

Steven Tuften, director of AI and emerging technology at Steadfast, says a great example of this is when using AI to write the first draft of a copy rather than sitting with a blank sheet of paper thinking about how to begin.

“It’s much easier to tear apart something wrong than to start with nothing,” he says. “But because of its probabilistic nature, you must fact-check it and have a human in the loop.”

Karr says the second camp of current AI applications is more specialised and tailored. In insurance, it’s used in areas such as pricing, underwriting claims, enhancing the supply chain and assessing risk. 

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