Enterprise Risk Management Technology Guide 2023/24

Milliman: AI will grow the insurance market

What are the technology innovations, that will shape the insurance market over the next decade? 

Lisa HendersonIt is impossible not to focus on AI, and specifically generative AI, when talking about transformative technologies. How we work, learn, buy, sell, connect, and invent will change in significant and meaningful ways. Across the insurance industry, it is hard to imagine a job where some portion of the day-to-day work could not be made more efficient by leveraging these models or the applications being built on top of them. As we gain access to more and better synthesised information—almost instantaneously—we can use our expertise to better understand risks and opportunities, leading to innovative new insurance products, services, and ways to reach new markets.

What do you see as the opportunities and risks for insurers using AI and machine learning? 

AI will grow the market. More information allows us to better assess and price risk, reducing friction for the customer to buy. In addition, this information can be used proactively to help consumers protect themselves from certain risks. 

There is also potentially an opportunity to be more granular in the types of protections we provide, which will make insurance more accessible around the world. It will also be easier for customers to appreciate the value of the coverage they purchase.

How is Milliman supporting insurers to integrate predictive analytics, AI and risk modelling into their long-term strategies?

Milliman has been using AI extensively for years in our solutions for risk assessment, pricing, product development, claims management and reserving. We continue to work with and incorporate leading-edge technology into our solutions. 

As generative AI develops, we’ve assembled a group of leaders who are collaborating and sharing ideas and best practices, to incorporate innovations into our work and to the market carefully. 

What innovations can we expect from Milliman in the next year? How will Milliman’s technology / software expertise benefit insurers?

As an insurtech leader, Milliman works with technology innovators to assess the market potential for their ideas and help them develop and bring their solutions to market. These solutions are built on many years of deep subject matter expertise and knowledge of client environments and workflows. For insurers, this allows for a faster adoption of new technologies and a faster return on their investment.