scholarly journals Evaluating the impact of AI on insurance: The four emerging AI- and data-driven business models

2019 ◽  
Vol 1 ◽  
pp. 15 ◽  
Author(s):  
Alex Zarifis ◽  
Christopher P. Holland ◽  
Alistair Milne
Keyword(s):  
Artificial Intelligence ◽  
Value Chain ◽  
Business Models ◽  
Data Driven ◽  
Insurance Companies ◽  
Customer Base ◽  
Insurance Sector ◽  
The Third ◽  
The Impact ◽  
The Way

The increasing capabilities of artificial intelligence (AI) are changing the way organizations operate and interact with users both internally and externally. The insurance sector is currently using AI in several ways but its potential to disrupt insurance is not clear. This research evaluated the implementation of AI-led automation in 20 insurance companies. The findings indicate four business models (BM) emerging: In the first model the insurer takes a smaller part of the value chain allowing others with superior AI and data to take a larger part. In the second model the insurer keeps the same model and value chain but uses AI to improve effectiveness. In the third model the insurer adapts their model to fully utilize AI and seek new sources of data and customers. Lastly in the fourth model a technology focused company uses their existing AI prowess, superior data and extensive customer base, and adds insurance provision.

scholarly journals The impact of artificial intelligence along the insurance value chain and on the insurability of risks

2021 ◽  
Author(s):  
Martin Eling ◽  
Davide Nuessle ◽  
Julian Staubli
Keyword(s):  
Artificial Intelligence ◽  
Value Chain ◽  
Insurance Coverage ◽  
Low Frequency ◽  
Insurance Companies ◽  
Future Research ◽  
Data Set ◽  
Insurance Sector ◽  
Prediction And Prevention ◽  
The Impact

AbstractBased on a data set of 91 papers and 22 industry studies, we analyse the impact of artificial intelligence on the insurance sector using Porter’s (1985) value chain and Berliner’s (1982) insurability criteria. Additionally, we present future research directions, from both the academic and practitioner points of view. The results illustrate that both cost efficiencies and new revenue streams can be realised, as the insurance business model will shift from loss compensation to loss prediction and prevention. Moreover, we identify two possible developments with respect to the insurability of risks. The first is that the application of artificial intelligence by insurance companies might allow for a more accurate prediction of loss probabilities, thus reducing one of the industry’s most inherent problems, namely asymmetric information. The second development is that artificial intelligence might change the risk landscape significantly by transforming some risks from low-severity/high-frequency to high-severity/low-frequency. This requires insurance companies to rethink traditional insurance coverage and design adequate insurance products.

scholarly journals Early Adopters to Early Majority - What's Driving the Artificial Intelligence and Machine Learning Powered Transformation in Financial Services?

2021 ◽  
Vol 12 (4) ◽  
pp. 43
Author(s):  
Srikrishna Chintalapati
Keyword(s):  
Artificial Intelligence ◽  
Machine Learning ◽  
Portfolio Management ◽  
Value Chain ◽  
Financial Services ◽  
Retail Banking ◽  
Early Adopters ◽  
Customer Life Cycle ◽  
Digital Disruption ◽  
The Impact

From retail banking to corporate banking, from property and casualty to personal lines, and from portfolio management to trade processing, the next wave of digital disruption in financial services has been unleashed by the concepts and applications of Artificial Intelligence (AI) and Machine Learning (ML). Together, AI and ML are undoubtedly creating one of the largest technological transformations the world has ever witnessed. Within the advanced streams of research in AI and ML, human intelligence blended with the cognitive reasoning of machines is finally out of the labs and into real-time applications. The Financial Services sector is one of the early adopters of this revolution and arguably much ahead of its leverage compared to other sectors. Built on the conceptual foundations of Innovation diffusion, and a contemporary perspective of enterprise customer life-cycle journey across the AI-value chain defined by McKinsey Global Institute (2017), the current study attempts to highlight the features and use-cases of early-adopters of this transformation. With the theoretical underpinning of technology adoption lifecycle, this paper is an earnest attempt to comment on how AI and ML have been significantly transforming the Financial Services market space from the lens of a domain practitioner. The findings of this study would be of particular relevance to the subject matter experts, Industry analysts, academicians, and researchers focussed on studying the impact of AI and ML in the financial services industry.

scholarly journals Impact of premium reserve on life insurance investments in the Western Balkans

2021 ◽  
Vol 16 (2) ◽  
pp. 355-376
Author(s):  
Jelena Tomašević ◽  
Milijana Novović-Burić ◽  
Ljiljana Kašćelan ◽  
Vladimir Kašćelan
Keyword(s):  
Financial Market ◽  
Life Insurance ◽  
Insurance Companies ◽  
Strong Positive Correlation ◽  
Western Balkans ◽  
Insurance Sector ◽  
Correlation And Regression Analysis ◽  
Country Level ◽  
Financial Investments ◽  
The Impact

The growing importance of life insurance in the world imposes a greater need for research in this area, particularly in the Western Balkans where the trend of growth has been closely accompanied by life insurance for the past two decades. Taking into consideration that life insurance companies are significant participants in the financial market, this research paper examines the impact of the premium reserve on the volume of financial investments of life insurance companies in Western Balkan countries, based on aggregate data on country level. In order to test its effect, linear correlation and regression models were used, based on data collected for the period 2006-2016. Additionally, comparative analysis was used to compare the position of life insurance companies in financial markets. The results obtained by applying correlation and regression analysis showed that there is a strong positive correlation between premium reserve and financial investments in all of the aforementioned countries in the region. This result is an important strategic guideline for the regulators and policymakers to make advancements in the life insurance sector as well as in the financial market of the Western Balkans.

A new sustainability model: engaging the entire firm

2014 ◽  
Vol 35 (2) ◽  
pp. 4-12 ◽  
Author(s):  
Wayne McPhee
Keyword(s):  
Value Chain ◽  
Business Models ◽  
Resource Constraints ◽  
Emerging Market ◽  
Firm Strategy ◽  
Chain Model ◽  
Activity Model ◽  
Content Type ◽  
Emerging Issues ◽  
The Impact

Purpose – The sustainable activity model re-envisions Porter's value chain to reflect the emerging impact of sustainability on firm strategy. The model helps to convert high level sustainability vision statements into a new set of actions that can create value from emerging issues like climate change, resource constraints, and a smaller, more connected world. Design/methodology/approach – The emergence and growth of sustainability, provides an opportunity to rethink traditional business models to better reflect current and emerging market conditions. Porter's value chain was adapted to reflect that: the value of a firm is based on more than just the profit margin and includes reputation, brand value and license to operate; sustainability can generate value by improving both internal and external engagement and collaboration; and the impact that the firm has on the outside world need to be included in firm strategy and decision making. Findings – The sustainable activity model is useful for focusing strategy on the material impacts of the firm rather than focusing on the issues that are most prevalent in the media or where managers have a particular interest. The model allows the firm to clearly set out new actions and new behaviors that change how the firm interacts with the world and how value is created. Originality/value – The sustainable activity model adapts the traditional value chain model to better fit the business issues that have emerged over the last 25 years and to prepare for a future that will continue to change at an ever increasing rate. Applying the model to strategy and business decisions will encourage new ways of thinking about value and generate new activities for creating value and enhancing the resilience of the firm against future changes as the sustainability trend continues to evolve.

Artificial Intelligence, Machine Learning, Automation, Robotics, Future of Work and Future of Humanity

2019 ◽  
Vol 30 (1) ◽  
pp. 61-79 ◽  
Author(s):  
Weiyu Wang ◽  
Keng Siau
Keyword(s):  
Artificial Intelligence ◽  
Machine Learning ◽  
Industrial Revolution ◽  
Future Research ◽  
Way Of Life ◽  
Negative Effects ◽  
Future Research Directions ◽  
Negative Impacts ◽  
The Impact ◽  
The Way

The exponential advancement in artificial intelligence (AI), machine learning, robotics, and automation are rapidly transforming industries and societies across the world. The way we work, the way we live, and the way we interact with others are expected to be transformed at a speed and scale beyond anything we have observed in human history. This new industrial revolution is expected, on one hand, to enhance and improve our lives and societies. On the other hand, it has the potential to cause major upheavals in our way of life and our societal norms. The window of opportunity to understand the impact of these technologies and to preempt their negative effects is closing rapidly. Humanity needs to be proactive, rather than reactive, in managing this new industrial revolution. This article looks at the promises, challenges, and future research directions of these transformative technologies. Not only are the technological aspects investigated, but behavioral, societal, policy, and governance issues are reviewed as well. This research contributes to the ongoing discussions and debates about AI, automation, machine learning, and robotics. It is hoped that this article will heighten awareness of the importance of understanding these disruptive technologies as a basis for formulating policies and regulations that can maximize the benefits of these advancements for humanity and, at the same time, curtail potential dangers and negative impacts.

Periodizing Classic Noir

2017 ◽  
Author(s):  
Robert Miklitsch
Keyword(s):  
The Third ◽  
Recent Interest ◽  
History Of ◽  
The Impact ◽  
The Way

This concluding chapter traces the history of classic noir by reflecting on the way in which the genre has been discursively constituted through its beginnings and endings, an act of periodization that typically entails nominating particular films as the first and last noir in order to differentiate the intervening films from, respectively, proto- and neo-noir. While the recent interest in Stranger on the Third Floor (1940) is one sign that Boris Ingster's film has supplanted The Maltese Falcon (1941) as the first, titular American noir, recent transnational readings of the genre have problematized the reflexive determination of classic noir as a strictly American phenomenon. In fact, the impact of Odds against Tomorrow (1959) on transnational neo-noir indicates that the end or terminus of the classical era is just as provisional—just as open to interpretation and therefore, revision—as its origin.

Myanmar's insurance sector poised for liberalisation

2016 ◽  
Keyword(s):  
Regulatory Framework ◽  
Insurance Companies ◽  
Government Bond ◽  
Content Type ◽  
Customer Base ◽  
Insurance Sector

Subject Myanmar insurance sector prospects. Significance Myanmar's insurance sector is underdeveloped, constrained by an onerous regulatory framework and absence of foreign industry actors, but 2017 is expected to see reforms that should catalyse the sector. Impacts Foreign insurance companies may be given permission to take the first steps in conducting business in Myanmar. However, this would likely be limited to a closely defined customer base. A more robust and dynamic insurance sector could aid government revenues by aiding government bond sales, bringing in kyats. Myanmar insurers will face competition within ASEAN as the insurance sector develops.

Investment Portfolio Performances of Public Sector General Insurance Firms in India: An Empirical Approach

2017 ◽  
Vol 6 (1) ◽  
pp. 61-75
Author(s):  
Joy Chakraborty ◽  
Sankarshan Basu
Keyword(s):  
Public Sector ◽  
Multiple Linear Regression Model ◽  
Insurance Companies ◽  
The Public ◽  
Insurance Sector ◽  
General Insurance ◽  
Long Run ◽  
Insurance Firms ◽  
Investment Portfolios ◽  
The Impact

Deregulation of the Indian insurance sector has witnessed the rise of private players in the Indian general insurance sector post-1999. Though the four major public sector general insurers still continue to dominate the Indian general insurance market, an abrupt rise in the number of private players has raised concerns upon the solvency position of the public sector general insurance companies in safeguarding their policyholders’ interests. The major reason for this concern could be attributed to the existing investment portfolios of the general insurance firms, the impact of which has been felt upon their solvency position. The present study investigated the investment portfolios of the four major public sector general insurance firms in India involved in multiline businesses, and its subsequent impact upon their solvency position. The application of the multiple linear regression model has been employed to investigate the solvency determinants of the public sector general insurance firms in view of their short-term and long-term investment portfolios, covering the study period from 2005–2006 to 2014–2015. The findings of the study have pointed out the necessity for the four public sector general insurers to focus on certain key investment variables in their investment portfolios in ensuring a sound solvency position in the long run.

scholarly journals A Study on Impact of FDI on Selected Private Sector Insurance Companies in India

2017 ◽  
Author(s):  
C.K. Hebbar ◽  
Meenakshi Acharya
Keyword(s):  
Private Sector ◽  
Negative Impact ◽  
Insurance Industry ◽  
Secondary Data ◽  
Insurance Companies ◽  
Insurance Markets ◽  
Insurance Sector ◽  
Previous Level ◽  
The Impact ◽  
Indian Insurance

India is one among the most promising emerging insurance markets in the world. Indian insurance sector was liberalised in 2001. The insurance industry in India has undergone transformational changes over the last 15 years. In July 2014, the Cabinet Committee on Economic Affairs (CCEA) approved 49% FDI in insurance from the previous level of 26%. This paper aimed at examining the impact of FDI on the performance of selected private sector insurance companies. The study is based on secondary data and it is a descriptive study. This paper found that FDI had a significant positive as well as negative impact on areas which were studied in the paper.

scholarly journals A Study of Impact of Cloud Computing and Artificial Intelligence on Banking Services, Profitability and Operational Benefits

2021 ◽  
Vol 12 (6) ◽  
pp. 1617-1627
Author(s):  
Sadhana Tiwari, Shashank Bharadwaj, Dr. Sunil Joshi
Keyword(s):  
Artificial Intelligence ◽  
Cloud Computing ◽  
Business Models ◽  
Mobile Banking ◽  
Cloud Infrastructure ◽  
Regulatory Requirements ◽  
Banking Services ◽  
Virtual Tools ◽  
Confirmatory Factor ◽  
The Impact

Banks have seen a convergence in end-customer banking interactions over the last decade, owing to IT-enabled solutions and services such as Core Banking, Online Banking, Mobile Banking, Wallet, Wallets Kiosk Banking. The evolution of IT in the banking industry supports both banks and their clients. Banks' business models are now centered on delivering consumer joy via IT-enabled solutions and services. Cloud technology allows banks to follow a digital paradigm for providing novel channels, reducing TAT to market new offerings, fulfilling consumer expectations, and adhering to regulatory requirements at a lower cost. In constantly evolving technical paradigms, cloud-based solutions offer a higher value proposition to IT solutions and services. Device administrators can remotely assemble, upload, customize, and execute virtual tools to manage a business solution using cloud infrastructure. Furthermore, cloud IT technology can be scaled up or down at any time based on planned use and specifications without incurring high costs. To assess the impact of cloud computing and artificial intelligence in operational and service advantage Confirmatory factor analysis (CFA) technique is used. The thesis demonstrates how well the measured variables reflect the number of constructs and whether the estimation hypothesis is confirmed or rejected.

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