AI Messaging is Everywhere for InsureTech Startups

Everyone’s talking about AI. Many InsureTechs claim to have built AI platforms, including machine learning, machine vision, and natural language processing (NLP). However, these capabilities aren’t always real AI; they might be glorified predictive analytics or even simple rule engines.

One AI technology making inroads is machine vision. Insurers most often apply machine vision for damage assessment in personal lines claims or risk mitigation. Claim Genius and Tractable apply the technology to determine auto damage; Betterview uses machine vision to analyze roof and property conditions.

Startups are also offering AI in combination with predictive analytics to flag policyholder behavior, sentiment, or propensity for churn. One example is Aureus Analytics, a startup that applies AI interactions and sentiment analysis to improve customer experience. Mody Data Solutions and Calypso AI are applying AI for claims fraud analytics. Companies like Atidot are combining AI and predictive analytics to help life insurers understand lapses and cross-sell opportunities

Many startups have embraced NLP for intake automation or external customer interactions. Ushur, for example, provides a conversational AI and automation platform for customer engagement, including AI and NLP-enabled chatbots. App Orchid uses NLP to automate intake, and Amenity Analytics uses NLP to surface insights from public documents like earnings call transcripts, SEC filings, and news articles.

As AI becomes commonplace, it’s becoming clear that it’s not upending the industry. Instead, AI is helping insurers improve processes and capabilities incrementally. InsureTech startups using AI can help insurers bring some of these new capabilities in-house at a lower cost point, avoiding the need to commit substantial internal resources to AI transformation.

Novarica recently outlined AI categories, technology applications, and 40 industry use cases in its recent report Artificial Intelligence Use Cases in Insurance. More information on individual InsureTech startups and their AI capabilities is available in Novarica’s InsureTech industry report, InsureTech for Insurers: 200 Startup Profiles. Novarica will be publishing an update to this report in September, which will profile 250 startups.

Don’t hesitate to reach out if you’d like to discuss the InsureTech landscape further either with myself ([email protected]), or Novarica EVP Jeff Goldberg ([email protected]).

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