Artificial Intelligence (AI) will help the insurance industry better understand risks, grow their business, fill resource gaps, and attract more talent.
Insurance providers are realizing the power of AI as it predicts future risks. From there, they can better deal with risk, optimize underwriting with faster quote-to-market. By 2023, AI is expected to help all aspects of the insurance industry grow.
More policies and faster in-person processing are what insurance providers want. By 2023, they expect the use of AI to improve the ability to combine disparate key data, quote submission processes, digitize content, document structure, and information. All this allows insurers to easily access and leverage data, new business can be analyzed more accurately.
Weather risk forecast
Valuation of indemnities due to weather or climate change is a top priority in 2023. With changing weather conditions, it is becoming increasingly difficult for insurers to value risk. In addition, environmental and social concerns are increasing, especially when businesses want to assess risks over a large geographical area.
Consolidation of new business, valuation
Companies will rely more heavily on AI to analyze the flow of businesses and risks related to cybersecurity. It is expected that the more widespread use of AI in underwriting, valuation, claims will make this process smoother.
In addition, AI can also perform manual tasks, thereby saving manpower for insurance businesses. This will reduce the severity of the human resource crisis many companies are facing and let them take advantage of talent more.
The resource gap is filled
Over the past 5 years, insurance technology providers have gradually filled in the resource gaps, such as risk analysis documents for underwriting. Since the pandemic, many people have quit their jobs and have not returned to the workforce. As a result, AI technology is increasingly taking on a higher role, constantly interacting with humans to manage and automate low-level or manual tasks.
AI technology development
Companies are actively using and developing AI for new projects. Meanwhile, they inherently lack enough IT resources, especially in advanced technologies like data science to build the necessary product and internal systems. Many internal projects are delayed for more than 18 months, even taking 2 years to develop because of complexity and lack of important technical knowledge.
Can I buy home insurance on behalf of someone else?
I want to buy my parents a private home insurance package, but the house is not in my name. Advice please? (Minh Luan, 32 years old)
You can buy private home insurance instead of family members, including: spouse, parents, parents-in-law, and children. The purchase condition is to be authorized by the owner or the lessee named on the rental contract, in the case of a rented house, with related rights and obligations.
Home insurance is a product of the group of non-life insurance, for the house against all possible risks because it will be compensated in cash, repaired or replaced when there is a loss.
Buyers can choose to cover all or part of the home’s value. Besides, depending on the form of registration, the fee will also be low. You can buy insurance for part of your home if you have an insurable interest in it.
Specifically, the rental contract clearly states that you are responsible for looking after and responsible for material damage during the use of the house. In addition, customers can also purchase insurance for the property inside the home owned or under the responsibility.
Hope you find a suitable insurance product soon!.
What is duplicate insurance?
I bought body insurance at the same time as the car, but my wife didn’t know so I also bought a similar policy. Can I use 2 insurance policies at the same time? (Minh Huy, 34 years old)
In this case, the law does not prohibit the insured party from buying insurance for the same object as the property. This object is at the disposal of the owner and they have the right to buy insurance for their property at many insurance companies, with the same insurance benefits, the same risks.
The insurance company has the right to recover pro rata on the basis of the amount of insurance indemnity (paid or payable) to the insured from other companies. Accordingly, these companies are also jointly liable for that claim.
Thus, this is the case of coincident insurance – the insurance contract has the scope to apply to the subjects being property and civil liability, not to the subject being human.
In the event that the parties enter into a duplicate insurance contract, when an insured event occurs, each insurer is only responsible for indemnification according to the ratio between the agreed insurance amount to the total insured amount of the insurance company. all contracts the buyer has entered into. The total amount of indemnification by the insurers does not exceed the actual damage value of the property.