Indian insurer ICICI Lombard has been working with technology platform MyRA since April 2017. Together they have used artificial intelligence (AI) to process 4,000 estimates for fire and burglary insurance for SMEs. The entire process – including payment and receipt – can be completed without human intervention, and is far less time consuming for the customer.
The UK SME market has been relatively immune to this type of technology to date, with examples more prevalent in simpler lines such as motor or travel. This is partly because of the difficulties in cutting out intermediaries in the SME space due to the need for personal advice.
However, fire and burglary insurance appears to be a good entry point. It is a relatively straightforward line to price; estimates can be made based on type and size of company and location, which lends itself well to AI solutions.
AI remains at a nascent stage in the UK SME market, but the example set by ICICI Lombard and MyRA should act as motivation. GlobalData interviews have revealed that SME insurers are looking towards technology to turn insurance into more of a preventative service and to increase interaction with customers. AI can help insurers with both, meaning it is a space worth watching.
By Ben Carey-Evans, General Insurance Analyst