Abacai Holdings, a new insurtech, has the potential to surge ahead of competitors by prioritising the role of artificial intelligence (AI) in insurance. According to GlobalData, a leading data and analytics company, this is a good area to focus on as there is a lot of anticipation around the future of AI across all industries, especially insurance.

GlobalData’s 2020 Emerging Technology Trends survey found that the COVID-19 pandemic had a positive impact on insurers’ perception of AI. GlobalData found that 58.4% of firms became more positive to AI during the pandemic, and 54.3% of firms in the insurance industry believe AI will play a significant role in helping them survive the COVID-19 crisis.

Ben Carey-Evans, Insurance Analyst at GlobalData, comments: “COVID-19 has shone a spotlight on AI within the insurance industry, and many firms are beginning to recognize the importance that technology brings during difficult periods.”

GlobalData also found that insurance firms overwhelmingly believe that AI will support new business in the coming years. Only 12.7% of firms do not see AI being used to support new business development, while 47.9% think it will be critical to new business development and 39.4% believe AI will play a secondary role.

Carey-Evans continues: “Insurers that do not use AI to innovate their products and processes risk being overtaken by competitors. AI can enable insurers to analyse a huge amount of data quickly and efficiently, while the strength of its analytics will define whether it can offer optimum premiums for the customer and itself. AI can also be essential in claims management, where quick payouts can be crucial to customer satisfaction. Furthermore, the technology can also help identify fraudulent patterns and behaviors, and therefore reduce unnecessary payouts.

“Abacai already has strong backing and experience in the form of Munich Re and an Aviva chief exec. It has significant sums to invest and since it has identified a key area of growth within insurance, it is a start-up to watch in the insurance industry.”