Data is the key that unlocks the potential of AI in claims
Artificial intelligence has great potential to improve many aspects of claims management – but insurers should also treat it with caution and ensure that their underlying data is as good as it can be if they are to truly leverage its potential.
That was the view of Marc Scheidegger, global chief claims officer, Swiss Re, speaking in a panel discussion which took place on the first day of Airmic’s annual conference, being held in Edinburgh this week.
Called, ‘Exploring Tomorrow’s Risks Today’ it featured Peter Carter, head of Climate Practice, WTW; Marc Scheidegger, global chief claims officer, Swiss Re; and Joe Peiser, global CEO for Aon Commercial Risk, Aon.
Stressing he comments relate more to the insurance side of Swiss Re in his capacity as a member of the executive committee of Swiss Re Corporate Solutions, he recommended that insurers start by developing a sandbox to test any use of AI first. “Use it, play with it – work out what you want it for. But don’t forget the underlying data is critical. We all deal with so much data, but it is so often unstructured and difficult to work with. You must also focus on that.”
He also stressed that insurers implementing such technologies should carefully consider how to best implement change within their organisations as part of the approach. He noted that many institutions in the risk space are very old, traditional and using fragmented technology. “There is hype of AI but there is also a bigger picture to consider,” he said.
Carter at WTW moved the discussion onto climate change. He made the point that as well as bringing new risks to the fore, it is also amplifying other risks the industry is used to. He asked the audience how many of them had climate change in their top 10 company risks. The results was high – as much as 75% or more of the audience. He then asked how many know how to fix climate change. No one put their hands up
He stressed that facing climate change is complex and a big challenge. “The world is struggling to move the needle on the topic. There are some success stories but it is a mixed picture.” He noted that in the UK, for example, great strides have been made towards renewable energy, but there also remains resistance around the infrastructure needed to support new technologies.
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