Global AI Insurance Premiums Will Exceed $20 Billion by 2024

Global AI Insurance Premiums Will Exceed $20 Billion by 2024

Foto: Depositphotos

Juniper Research forecasts that the value of AI underwritten insurance premiums will exceed $20 billion by 2024, up from an estimated $1.3 billion in 2019. This growth will be driven by streamlined underwriting processes, faster customer onboarding and reductions in operational costs enabled by AI.

According to the research, efficiencies in underwriting will be enabled by increased use of telematics and IoT management tools in the motor, home, life and health insurance sectors. Insurers’ increased access to operational and behavioural data will enable enhanced data analysis capabilities; allowing insurers to guard against evolving risks.
The research anticipates that global revenues from telematics will grow from $1.2 billion in 2019 to $5.4 billion by 2024. It forecasts that this growth will be driven by increasing support from automotive OEMs, as part of wider connected car strategies. Increasing vehicle numbers in Far East & China will drive telematics growth, increasing its revenue share from 15% in 2019 to 33% in 2024.

The research forecasts that industry cost savings from AI will grow from $340 million in 2019 to $2.3 billion by 2024, as insurers exploit efficiencies achieved through the automation of resource-intensive tasks. The motor insurance industry will have the largest cost savings; accounting for over 60% of total savings globally by 2024, enabled by the significant uptake of AI-based insurtech premiums and several insurtech vendors applying AI to great effect.

Additionally, the research identifies the healthcare industry as a sector primed for disruption and recommends that health insurers target AI as a way to reduce operating costs and enable competitive pricing. It anticipates that advances in NLP (Natural Language Processing) will enable insurers to leverage the abundance of existing unstructured data, allowing them to manage and create value from more data sources, creating streamlined processes.

More from category

Black Friday and Singles’ Day Will Be Bigger than Christmas and January Sales

Black Friday and Singles’ Day Will Be Bigger than Christmas and January Sales

12 Nov 2019 comment

Sales in Black Friday week already top Christmas revenues in Great Britain, France, Germany, Italy, Spain, Poland and Brazil.

US Holiday Sales Will Cross $1 Trillion for First Time

US Holiday Sales Will Cross $1 Trillion for First Time

12 Nov 2019 comment

eMarketer forecasts that total US holiday retail sales will climb 3.8% to $1.008 trillion this year, the first-ever trillion-dollar holiday season.

Worldwide Smartphone Shipments Rise 0.8 Percent in 3Q19

Worldwide Smartphone Shipments Rise 0.8 Percent in 3Q19

10 Nov 2019 comment

Worldwide smartphone shipments increased 0.8% year over year in the third quarter of 2019 (3Q19) reversing seven quarters of decline, according to IDC.