GlobalData, a research and analysis company, uses its Technology Foresights model to predict the disruption level of emerging technologies across various sectors. The model assesses companies’ innovation portfolios to offer both quantitative and qualitative insights.
According to GlobalData’s Technology Foresight model, the most significant AI disruptions in the insurance sector include underwriting AI technology, user behavior analytics, and automated premium discounting.
The rise in funding signals a shift in the insurance sector’s engagement with AI. While insurance companies already use AI for processing claims and conducting risk assessments, GlobalData identified a new wave of AI innovation focused on more specialized insurance needs.
Sourabh Nyalkalkar, GlobalData’s head of innovation products, recommends that insurance industry leaders and stakeholders establish AI partnerships early and take careful measures when considering potential AI-related acquisitions. He also noted that AI is particularly transforming the personal and health insurance sectors.
The global AI market is projected to be worth $909 billion by 2030, highlighting the growing importance of AI in various industries. Property insurance is also being deeply affected by AI.
He said: “Startups such as Prognomiq are developing multi-omics analysis platforms for early disease detection. On the other hand, startups like Pervisia and Cota are creating predictive healthcare expense management tools for payers and providers. In the property insurance space as well, a notable surge in innovation activity is apparent in both established industry leaders and upcoming startups.”
He continued: “For instance, Tractable, which secured a $65 million investment from SoftBank in July 2023, has pioneered a groundbreaking computer vision-based solution for swift damage assessment of vehicles and buildings.”
“The evolving landscape of the insurance industry reveals the presence of over a hundred startups actively developing AI-led solutions, all monitored on Technology Foresights.”
Nyalkalkar added: “With a proactive approach, leaders in the insurance sector can effectively position themselves to navigate the dynamic market conditions and stay ahead of the disruptive forces.”
