CHAPTER 24The Digitally-Enabled Underwriter: How AI is Transforming Commercial Insurance Underwriting
By Ron Glozman1
1Founder and CEO, Chisel AI
Investment in InsurTech by commercial insurance companies has long lagged behind personal lines. According to Insurance Business Magazine,1 over the past decade, InsurTechs focused on personal lines saw $5.8 billion worth of investment versus just $1.3 billion for InsurTechs focused on commercial lines. For every dollar that personal lines spent on InsurTech Innovation, commercial insurers invested a mere 22 cents.
It is no surprise that commercial insurers have some catching up to do when it comes to technology innovation. What is surprising is the extent to which artificial intelligence (AI) has become a catalyst to accelerate their digital transformation. While commercial insurance has habitually been among the last industries to embrace new technologies, AI is proving the exception to the rule.
Why AI, Why Now?
Kevin Kelly, founding editor of Wired, coined a famous phrase that captures the flux that commercial insurance finds itself in today: ‘The future happens very slowly and then all at once.’ A perfect storm of massive volumes of unstructured data, slow and cumbersome back-office processes and years of underinvestment in technology has created a commercial insurance industry that is ripe for disruption – and also finally ready to embrace it.
In the era of Amazon, commercial insurers are grappling with the on-demand expectations ...
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