Data-driven insurance stands for the strategic use of disruptive AI algorithms to analyze new data. As a result, sustainable competitive advantages are created through process, product and service innovations, with the influence of AI being a key driver in the competition between insurance ecosystems. This is because AI and its associated technologies are having a disruptive impact on all processes in the insurance value chain, from sales to underwriting and from pricing to claims. They are also transforming insurance products and services by supporting or even enabling usage-based, micro, short-term, and integrated insurance. For the adoption of data-driven insurance to gain momentum, it will require a strong leadership coalition at the highest levels. This will ensure the strategic use of new data, the scaled implementation of advanced AI algorithms, and the planned transformation of the insurance business.
In terms of strategy, there are some best practices to consider when implementing data-driven insurance. For more information on the broad adoption of AI to support DDI, read my whitepaper (German).
