AI, Machine Learning Increasingly Embraced by U.S. Carriers: LexisNexis

December 5, 2019

Artificial intelligence and machine learning are increasingly embraced by U.S. carriers as they seek to remain competitive and modernize their operations, a new LexisNexis Risk Solutions study has found. Struggles remain, however, in terms of figuring out staffing and proper use of the technology to optimize its benefits.

LexisNexis’ look at how the top 100 U.S. carriers are using and benefiting from artificial intelligence and machine learning found a robust adoption of the technology and a strong belief in the benefits it will bring.

Approximately 62 percent of respondents said they worked for insurance carriers that have already adopted artificial intelligence (AI) and machine learning (ML) initiatives. About 75 percent said they believe AI and ML can provide carriers with a competitive advantage through better decision-making.

While carriers are generally positive about their use of artificial intelligence and machine learning (AI/ML), implementation does come with its own set of challenges surrounding staffing, data and compliance, which the study also identified as the biggest obstacles carriers face in order to take full advantage of AI /ML.

“Insurers are grappling with unprecedented changes, whether it’s how digital impacts customer expectations, blurring industry lines that foster co-opetition and new business models, or increasing regulatory requirements around data privacy and security,” John Beal, Senior Vice President, Data Science, LexisNexis Risk Solutions, said in prepared remarks. “A key lesson from the study is that carriers must invest in capabilities that will help them thrive in a faster-paced, data-driven market. AI/ML capabilities can give them the real, measurable lift they need to get ahead.”

More than 300 insurance professionals in data science, analytics, actuarial, technology, underwriting, product management and claims roles completed the survey, representing the top 100 U.S. insurers across the auto, home, life and commercial markets.

Among the major findings:

Source: LexisNexis Risk Solutions