Individual project AIG

[Virtual Presenter] Good afternoon everyone. Today's topic is AIG and how technologies such as Autonomous Vehicles, Internet of Things, Big Data analytics, Artificial Intelligence and Automation, Blockchain, and Biotechnology are likely to affect the AIG insurance business in the next 5 years. I hope my presentation will help you all understand the role of these technologies and their implications for the future..

[Audio] AIG is one of the foremost providers in the international insurance market. Established in 1919, their operations span more than 80 countries and jurisdictions, with reported overall revenue in the last year standing at 27.7 billion, out of which General Insurance accounted for 49%. Their wide range of products and services comprises motor and property insurance, life insurance, travel and casualty insurance, retirement products, fire and mortgage insurance, and other financial services. Through their 100 years of experience and expansive international presence, AIG continues to deliver dynamic and reliable solutions to clients across industries..

[Audio] As technology advances, it is no secret that it will have a major impact on the insurance industry. Autonomous vehicles are just one example, as they can reduce accidents and premiums, while telematics can track driving behaviour and adjust premiums accordingly. The Internet of Things has also changed the face of home insurance, with smart homes reducing premiums and wearable devices offering more in health insurance. Big data analytics has allowed more players to enter the market, giving customers greater control over their insurance policies, while artificial intelligence and automation can reduce agents and make life easier for customers. Even blockchain technology is revolutionizing the industry with smart contracts and segmenting the market. Finally, biotechnology is enabling the insurance industry to analyze risk factors more effectively. It is clear that technology has transformed the insurance industry, and AIG is no exception..

[Audio] As the advancement of technology and safety features reduce the risk of car accidents, the insurance business model must adapt in order to remain profitable. Autonomous cars now come equipped with GPS tracking systems and anti-theft features such as 'kill-switch', which decreases the need for theft protection coverage, resulting in lower premiums. Additionally, traditional auto insurance business models are likely to be affected as the responsibility for accidents and liability shifts from the driver to the manufacturer. Consequently, insurers must devise new products and pricing strategies to sustain their profits..

[Audio] Insurers are now presented with an opportunity to access real-time data thanks to the emergence of the Internet of Things. With connected devices and data-gathering technology, insurers can gain a better understanding of risk and offer more tailored pricing to their customers. Nevertheless, with an increased reliance on information sourced from these connected devices, stringent cyber security measures must be in place to avoid data breaches, cyber-attacks, and other potential security risks..

[Audio] IoT is transforming the insurance industry. Connected devices and real-time data collection enable insurance companies to better evaluate risk levels, allowing for tailored pricing for customers. There are also obstacles to overcome, like data privacy and security risks, which necessitate thorough security protocols. Smart home devices can detect gas leaks in homes, which helps insurers reduce fire insurance premiums. Similarly, wearable devices can monitor customers’ lifestyle habits, helping to identify and forestall health issues, leading to lower health insurance premiums..

[Audio] AI has drastically changed the insurance industry through enabling instantaneous risk evaluation and policy management, simplifying claims resolution, and detecting probable insurance deceit. Enhanced technologies such as intricate algorithms and anticipatory models allow insurers to utilize a wealth of data and acquire applicable observations. This permits them to take better informed decisions and offer customized insurance plans to their patrons, which in turn generates a higher degree of customer contentment..

[Audio] At AIG, we recognize the importance of staying abreast of the newest trends in insurance technology and analytics. Our team of professionals is working on fresh solutions to better comprehend the customer and their requirements by deploying sophisticated analytics, machine learning, and AI-equipped solutions. We are enthusiastic to show how emerging technologies can be utilized to improve the customer experience as well as invent fresh products and services. We are devoted to supplying our customers with the best insurance coverage possible. Taking a proactive stance to disruption, we are taking advantage of the latest tech and tools to produce modern solutions that accommodate the requirements of our customers. Whether it is relying on analytics to get a better understanding of customer habits or using artificial intelligence to upgrade products and services, we are committed to improving the customer experience..

[Audio] Blockchain technology is revolutionizing the traditional insurance industry with its distributed data storage, point-to-point transmissions, consensus mechanisms, encryption algorithms and other capabilities, enabling considerable efficiency, cost savings, fraud reduction, data accuracy, and automation of the entire insurance process. Moreover, the six core characteristics of blockchain—decentralization, openness, transparency, anonymity, data immutability, and autonomy—present innovative opportunities for insurers to engage customers in novel ways..

[Audio] Modern technology has brought about a revolution in the insurance industry, enabling startups to use advanced technologies such as artificial intelligence, data analytics, and the internet of things to create more efficient, personalized, and customer-centric insurance solutions. Insurtech is pushing the boundaries of how insurance is experienced, making the process simpler and more tailored to customers' individual needs. Metro Mile and Zippery are examples of companies that have championed this technology, providing innovative solutions for easy insurance transactions. The investment in this sector is expected to grow, presenting an opportunity for businesses to explore the possibilities of Insurtech..

[Audio] At AIG, we recognize the significance of offering low-cost protection to farmers in developing economies. Our new data streams technology permits the creation of micro-crop insurance, guaranteeing farmers are protected in instances of extreme weather or inadequate rain. By automating the claims process, we are able to decrease settlement costs to make insurance policies within reach. We take pride in being in the forefront of providing inclusive insurance solutions to those who need it most..

[Audio] With the advent of the internet, insurtech companies are revolutionising the traditional approach of insurance by introducing peer-to-peer and on-demand models. Peer-to-peer networks enable groups of people or businesses to unite and share risk, reducing the cost of finding customers. On-demand cover can be purchased for short periods, such as travel insurance for flights. This provides an innovative way to provide tailored services, making insurance products more accessible for consumers..

[Audio] It is clear that the insurance industry is undergoing major disruption due to rapidly changing technologies and the power of data and analytics. This has created a trend towards preventing risks as opposed to insuring them. Furthermore, various institutional investors have been investing heavily into insurance-related capital market instruments in the hopes of obtaining greater returns. In light of this, insurers must continuously reconfigure their business models in order to remain competitive..