[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.. 

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Presenter： Chau Ching Hang, Dennis  1155036737

[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.. 

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1. Introduction 
- AIG (American International Group Inc)

Incorporation. Found in 1919, a leading global insurance organization 
 Listed in. New York Stock Exchange (NYSE) (AIG.NYSE)
 Global business. Operates in more than 80 countries and jurisdictions worldwide.

 Major revenue. General insurance accounted of 27.7B (49%) of its total revenue in 2022. 
 Products and services.
 Motor insurance  Property insurance Travel insurance  Casualty insurance Life insurance Retirement products Fire insurance Mortgage insurance  Other financial services

[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.. 

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2. Technologies that threaten AIG in the next five years

[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.. 

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lane assistance Self parallel parking Traffic jam assistance GPS
 Responsibility for accidents and liability shift from individual drivers to manufacturers or technology providers
 Impact the traditional auto insurance business model Claims ↓
 auto insurance premium costs ↓

Car as a property
Car as a service
O_
Autonomous car services

anti-theft features like 'kill-switch' does not allow anyone other than the owner of the car to turn the ignition on; GPS tracking system allows the car to be tracked easily. decrease in the need of theft protection coverage ↓ Claims ↓

[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.. 

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Connected
homeware
Energy saving
Technology
Improved security
Connected
govemment
Connected public
management
Digital government
Connected
protection
Connected
enterprise
Robotics
Smart procedure
Efficient
communication
Real time data
analysis
Internet
of things
Connected
automobiles
Improved safety
Improved convenient
Interactive navigation
Connected
entertainment
Connected
city
Connected
communities
Smart statistics
Smart
transportation
Connected
healthcare
Monitor and
prevention
Donal medical
Connected
physical and
mental health

IoT: a network of physical objects that can collect and exchange data
 gather real-time data from connected devices:  QR code scanners radio frequency identification (RFID) infrared sensors global positioning systems laser scanners
 allowing for more accurate risk assessment and personalized pricing.   Telematics allows track user’s driving behaviour and more accurately price auto insurance.

[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.. 

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smart home devices ↑

 accurately track gas leaks in a house

 mitigate fire risks

 fire insurance premium costs ↓

wearable devices ↑

 track customers’ lifestyle traits

 monitor and prevention of health problem

 health insurance premium cost ↓

[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.. 

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Big Data technologies benefits for
insurers and other stakeholders
Prediction of large
loss claims
An increase in access
to insurance services
•according to SNS Telecom&lT
Improvements in
fraud detection
e 60%
LIE!
1
processing and management
40-70%
Accelerated processing of
non-emergency insurance
claims
A reduction in policy
administration workload

Telematics collect real-time information about an individual’s driving habits to inform the pricing of auto cover
 data from wearable devices such as fitness bands and apps that monitor adherence to medical treatment can inform life cover-services that Sureify, a tech start-up, uses to assist carriers underwriting personalized term life cover.
 Some carriers have experimented with using social media data as a basis for underwriting and pricing decisions.

[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.. 

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2.4 Artificial Intelligence and Automation

Automated data
extraction from pdf
reports and
comparison against
various policy
combinations
Automated demand
analysis and
generating new
product offerings
Machine learning
insights to support
customer
segmentation
Automated creation of
targeted marketing
materials &
promotions
Customer personality
& tone analysis
Enabling intelligent
customer
engagement
Workload balancing /
lead allocation for
agents
Automated product
recommendations &
natural language
question answering
Enabling intelligent
self-service product
research for
customers
• Intelligent repotting &
visualisation
Marketing & Sales & Distribution
Enhanced pricing
Customized
products and
services
Improved speed
shift focus from
product to market
need
New marketing
channels with
tailored marketing
campaigns
Increased leads
generation
Efficient leverage
for cross and up-
selling
effectiveness
Increased service
quality
Extraction of insights
from multiple data
sources (incl.
unstructured)
Automated demand
analysis & generation
of new product
offerings
Enhanced pricing &
policy rating,
personalization
Natural language
question answering for
em 10 ees
Underwriting
Efficient and lean
underwriting
processes
Improved hit and
retention ratios
Increased risk
evaluation quality
Understanding &
actioning of external
emails & requests
Automation of call
center & webchat
service
Assistance for self-
service queries on
policy issuance,
endorsements,
cancellations &
renewals
Processing of
unstructured data
Servicing &
Policy
Administration
Increased
efficient
administration
processes
Increased
Real-time Q&A
service for FNOL
Pre.assessment of
claims & automated
damage evaluation
Automated claims
fraud detection using
enriched data
analytics
Prediction of claim
volume patterns
Augmentation of loss
ana is
Claims
Management
Higher quality in
claims
assessment,
management and
administration
Improved
predictability of
Contextual analytics &
skill contology to score
CVs against job
descriptions
'0 Prediction of likelihood
candidate will get
through selection
process
Prioritization of
candidates based on
hireability metrics
Leveraging online
assessments
Recruiting
Optimized
conversion rates
Improved match
rates & offer
acceptance
analytical insights
reserves and
fraud

[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.. 

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features distributed data storage, point-to-point transmission, consensus mechanisms, encryption algorithms, and other capabilities.
 six characteristics: decentralisation, openness, transparency, anonymity,  data immutability, autonomy

Threat: Blockchain technology has the potential to streamline insurance processes, enhance security, and reduce fraud. However, its adoption may also challenge traditional intermediaries such as brokers and agents, as blockchain can facilitate direct peer-to-peer transactions and smart contracts, potentially reducing the need for intermediaries and their associated fees.
 At present, blockchain applications in the insurance industry are mainly focused in the areas of product development, risk prevention, process optimisation and mutual insurance. These applications are transforming the value chain and process chain of the insurance industry as a whole. For example, traditionally insurance companies conduct product sales and management at the policy level, and customer information is quite dispersed. Using blockchain-as-a-service (BaaS) capabilities, insurance companies can integrate customer information from various channels, unify management of customer accounts, and achieve effective data sharing. In these ways, companies can speed up processes and become more efficient. Blockchain technology also allows for quick identity and information verification, and enables enterprises to collect and store data off their premises according to their needs, which can allow authorised third parties to sort and analyse data when necessary. In instances in which policyholders change their insurance companies, blockchain technology can help ensure data continuity. Additionally, since blockchain data cannot be modified, it offers significant anti-fraud value, which can reduce risk management costs for insurance companies.

[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.. 

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The rise of innovative insurtech startups leveraging technologies like AI, blockchain, and data analytics can disrupt the traditional insurance landscape.
 These startups often offer streamlined processes, personalized products, and enhanced customer experiences.
 If AIG fails to adapt technology and innovate: face increased competition and market share erosion.

[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.. 

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New data streams:  enables low-cost micro-crop insurance for farmers in emerging economies that does not require claims adjusters to trek to remote locations to settle claims. 
 Insurers use data analytics to determine if severe weather, low rainfall, or other factors would have damaged crops, and pay claims based on their analysis.   Vastly reduces settlement costs, making it possible for insurers to offer affordable policies to farmers in the developing world.

[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.. 

Scene 12

Private
o
On-Demand Insurance
while driving
o
o
Carsharing
Fixed Insurance layer
On-Demand Insurance
while Carsharing

Real-time data enable the provision of “episodic” or on-demand cover for short periods:
 a mobile app for episodic travel accident insurance bought on the spot: Travelers look up their flights, enter their personal data, and purchase cover for the duration of the flight. 
 European telecom operator Tele2 offers travel insurance in partnership with a Nordic insurer, for motorists whose insurance extends only to domestic travel:  When a driver crosses a border—from Poland to Germany, say— the insurer issues a text message offering episodic cover while the vehicle is out of Poland. 
 San Franciscobased Trov, has an app that enables consumers to buy short-term insurance on demand against loss or damage for items such as sports equipment and computers:  If they are about to take a ride on an expensive bike or take a laptop on a vacation, the app can be used to switch the cover on and off.

[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.. 

Scene 13

Trend on technologies that could affect the company negatively and significantly in the next 5 year :
 a shift toward preventing risk rather than insuring against it
 the increasing power of those companies that own and analyze data
 the investment of huge amounts of capital in insurance-related capital market instruments by institutional investors seeking high returns.

Individual project
                
AIG

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.

avatar

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Individual project AIG