Machine intelligence to help build underwriting excellence in post COVID-19 times
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One outcome of the pandemic has been an acceleration of the shift of daily-life transactions to digital. Swiss Re's latest consumer surveys show COVID-19 has been a catalyst for greater uptake of online insurance, and also provides indications of preferred features of online products. The rise in online purchasing is generating large volumes of new digital information about consumers, data which insurers can process, using latest machine intelligence techniques, to strengthen their underwriting capabilities. However, first more investment in data procurement and engineering is needed.
The key takeaways of this edition are:
- Accelerated digitalisation and consumer data availability in a post- COVID-19 era can generate large amounts of data to train MI models.
- To date deployment of MI-techniques has been low; more investment is needed.
- Potentially, MI algorithms could help life insurers develop continuous underwriting capabilities.
- MI could also help insurers build better predictive models and early warning systems.
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