Fintech Today curates the latest news and trends in the financial technology industry including the insuretech sector. In this roundup, we focus on AI -specific research findings as well as the use of telematics and high performance computing (HPC) in the auto insurance industry.
THE TOP CHALLENGES IN ARTIFICIAL INTELLIGENCE AND MACHINE LEARNING IN 2020
LexisNexis Risk Solutions recently announced a research report showing both the benefits and challenges of AI and ML in the insurance industry. After surveying 300+ professionals across the top 100 U.S. carriers, including those in the auto insurance industry, researchers learned that 62% of respondents believed they’d already seen benefits, including increased competitive advantage, by using AI technologies. The report also revealed that the four biggest challenges around AI and ML in the industry include financial obligations as well as issues with data management, staffing limitations, and meeting compliance standards.
TELEMATICS: THE BRIDGE TO THE INSURANCE AND AUTOMOBILE INDUSTRIES OF THE FUTURE
As most are already aware, AI and ML have been a major cause of disruption in the insurance – and especially the auto insurance –industry. Adding to this disruption is the use of telematics, otherwise known as information technology that deals with the transmission of computerized information. According to Greg Donaldson, Senior Analyst at Aite Group, “Telematics is a rapidly developing field that’s not only fueled by our ability to analyze and apply data through Artificial Intelligence and Machine Learning, but also because we have so many more devices able to capture and communicate data in real-time from the vehicle to the insurer,” he explained. “Telematics will be the bridge between the insurance industry of the past and what it will become in the future.”
HOW HPC, AI, AND IOT DRIVE THE FUTURE OF SMARTER VEHICLES
In addition to AI, high performance computing (HPC) is becoming a crucial component in the overall automotive, and auto insurance, industry. Unsurprisingly, The University of Michigan, who is leading research into the future of connected and autonomous vehicles with the help of insurance companies like State farm. They are then able to analyze the “tiny devices that connect [and transmit] individual car information, to machine learning algorithms that are trained on their GPU-backed systems, to simulations of more efficient traffic flows at scale” to create a more intelligent, connected, and safer auto industry.