After the 4th industrial revolution; how AI and machine learning will affect claims

As part of its ongoing preparations for the FERMA Forum, Crawford & Company® continues its series of articles on how insurance claims are changing in the digital age.

Throughout history, each industrial revolution has been accompanied by a mixture of excitement at the progress of humanity and fear of the unknown.

With this in mind, a workshop at the FERMA Forum on 16 October will explain what has triggered the “4th industrial revolution”, and how it may impact life, business and communication.

The workshop will put a particular focus on how a risk manager can adapt in this new environment of risk and opportunity.

Crawford & Company vice president, global markets, Rianne Baumann, gave ClaimsWorld® a glimpse of the perspective she will provide to FERMA Forum delegates.

Rianne Baumann - 2017 - preferred

Baumann: Appearing on expert panel at the FERMA Forum 2017

“Professor Klaus Schwab, founder and executive chairman of the World Economic Forum, has argued that the 4th industrial revolution is different to, and varies in complexity from, any industrial revolution that has come before, with data, analytics and new technologies at its core,” she says.

“I will be on a panel looking specifically at the implications for claims adjusting and how we as an industry may handle claims emerging from this revolution.”

Rianne says developments such as artificial intelligence (AI), machine learning, quantum computing and the internet of things (IoT) will impact every part of the value chain.

“The role of the insurance company and the claims adjuster will change as the world around us will change. I anticipate that artificial intelligence (AI) will have a significant impact on our profession over the coming years. AI is already around in many different forms and there are so many developments based upon the capability it brings, whether it is 3D printing, DNA sequencing or wearable sensors. A number of insurance companies have already introduced virtual assistant chatbots and many websites incorporate an element of AI.”

The first consumer group to experience major change will be personal insurance customers, says Rianne. “The impact will begin to reach consumers in their interactions with insurers because the high-volume, low-complexity nature of retail insurance claims demand innovative and efficient solutions.

“Claims adjusters like Crawford see this as an opportunity to help insurers deliver claim solutions that embrace digital technologies. Our on-demand inspection and validation service WeGoLook® is a good example where high volume services can be met by an adaptable, online service. We therefore see opportunity in this claims handling evolution.”

“For complex risks and losses in the business insurance marketplace, there remains a significant need for detailed and specialist analysis. As a result, the influence of technology in claims adjusting is not as immediately obvious. Nevertheless, commercial insurers are already calling upon WeGoLook to provide its drone-based survey solution to reach inaccessible locations after hurricanes Harvey, Irma and Maria and this is an example not of disruption, but of an augmentation in what we can provide.”

Rianne will be a panellist at the 4th industrial revolution workshop at the FERMA Forum with Sabrina Hartusch, global head of insurance at clothing retailer Triumph (moderator), Hillary Browne, head of liabilities UK at AIG Commercial Insurance, and Maurizio Micale, corporate ERM & insurance director at the smartphone technology specialists ST Microelectronics.

Click here for more information on Crawford at FERMA.

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