Artificial intelligence is finding its way into every industry and insurance is no exception.
The value of underwritten insurance premiums is estimated to exceed $20 million within five years, an increase from $1.3 billion this year, according to new research.
The growth is being driven by faster customer onboarding, streamlined underwriting processes and reductions in operations costs enabled by AI, according to the study by Juniper Research.
Global revenue from telematics, devices that capture and transmit data often from vehicles, is expected to grow from $1.2 billion this year to $5.4 billion by 2024.
The increased use of telematics and Internet of Things management tools in the motor, home, life and health insurance markets will create more efficiencies in underwriting, according to Juniper.
The forecast suggests insurance industry cost savings from AI will grow from $340 million this year to $2.3 billion in five years, with the largest cost savings being related to automotive.
The automotive industry is projected to account for 60% of total savings by 2024.
Juniper suggest AI can be used to learn, predict and adapt and even operate some insurance processes autonomously. AI applications include conversational platforms, chatbot sales agents, policy queries via chatbots and automatic claims reporting systems.