The introduction and integration of artificial intelligence (AI) has changed many industries. It’s responsible for the development of advanced robotics in the manufacturing industry, as well as being used to customize treatments in the healthcare industry. And now the insurance industry is set to change significantly thanks to the introduction of AI.
Mitsui Sumitomo Insurance was formed back in 2001 as the result of a merging between Mitsui Marine & Fire Insurance Co. and The Sumitomo Marine & Fire Insurance. It’s headquartered in Tokyo, Japan and has more than 20,000 employees.
The company’s latest venture involves using AI to cut as much as 90% of its office work. This will allow the human staff to concentrate more on insurance sales as opposed to menial administrative tasks. In making this change Mitsui Sumitomo will reduce its workload by as much as 20%.
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The company’s parent company, MS&AD Insurance Group Holdings will include its new AI reforms in its upcoming 3-year business plan. Other steps the firm is taking include integrating its current system with the Aioi Nissay Dowa Insurance system. This is the firm’s sister company and joining the systems will make life a whole lot easier for both moving forward. It’s also expected to save the company as much as 16 billion yen ($141 million) annually.
While the AI is carrying out tasks such as processing insurance applications and responding to customer and agent enquiries, the human staff will be freed up to sell more policies, help with claim settlements and assist with product development tasks. Although insurers across the board are looking to integrate AI into their businesses, unlike banks, they’re not looking to simply ditch their existing staff. Instead, they want to make use of the ones they have and find a way to best integrate the two.
Two other insurers that are hot on the case with AI are Tokio Marine Holdings and Sompo Holdings. While both are busy freeing existing staff from mundane administrative duties, they are replacing them with sales and new business tasks in areas such as the upcoming cyber insurance instead. Tokio Marine is aiming to cut down its workload by as much as 20-30% using AI. Sompo is looking to streamline the claims process and halve work in certain areas of it.