Evaluating the impact of AI on insurance The four emerging AI and data driven business models
Evaluating the impact of AI on insurance The four emerging AI and data driven business models
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.
Artificial Intelligence, Business Model, Insurance, Value Chain, Machine Learning
Zarifis, Alex
7622e840-ba78-4a4f-879b-6ba0f62363cc
Holland, Christopher P.
79d6865a-2337-43cb-a7af-bc89e573a17e
Milne, Alistair
d42d7d71-8db0-4878-b048-e65d1e8c87f4
10 December 2023
Zarifis, Alex
7622e840-ba78-4a4f-879b-6ba0f62363cc
Holland, Christopher P.
79d6865a-2337-43cb-a7af-bc89e573a17e
Milne, Alistair
d42d7d71-8db0-4878-b048-e65d1e8c87f4
Zarifis, Alex, Holland, Christopher P. and Milne, Alistair
(2023)
Evaluating the impact of AI on insurance The four emerging AI and data driven business models.
Emerald Open Research, 1 (1).
(doi:10.1108/EOR-01-2023-0001).
Abstract
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.
Text
Evaluating the impact of AI on insurance The four emerging AI and data driven business models 10-1108_EOR-01-2023-0001
- Version of Record
More information
e-pub ahead of print date: 1 October 2019
Published date: 10 December 2023
Keywords:
Artificial Intelligence, Business Model, Insurance, Value Chain, Machine Learning
Identifiers
Local EPrints ID: 490187
URI: http://eprints.soton.ac.uk/id/eprint/490187
ISSN: 2631-3952
PURE UUID: 07b6e761-841a-4c3e-b691-2084c890996d
Catalogue record
Date deposited: 16 May 2024 16:50
Last modified: 06 Jun 2024 02:21
Export record
Altmetrics
Contributors
Author:
Alex Zarifis
Author:
Christopher P. Holland
Author:
Alistair Milne
Download statistics
Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.
View more statistics