Generative AI, Climate Risks and Insurance Innovation

Genpact, a provider of applied Artificial Intelligence (AI) solutions, was featured today in an article from PropertyCasualty 360 entitled "Four ways generative AI helps insurers manage climate change."

"Generative AI is transforming insurance carriers in multiple ways such as minimizing claims losses; boosting operational efficiency; creating new revenue avenues; improving customer satisfaction; shaping local policy; fostering insurance inclusivity; and navigating future uncertainties more strategically" said Yasir Andrabi, global head of insurance strategy and growth at Genpact.

Genpact says Generative AI can enable insurers to analyze climate and weather related data, overlayed with property locations and attributes, and incorporate these inputs into the latest predictive modelling - thus enabling better product design, pricing and underwriting decisions along with smoother claims management. Genpact also says the enhanced predictive view of risks would allow insurers to better engage with policymakers in protecting the insurability of certain high-risk markets - through targeted building codes, disaster preparedness planning, etc.

In addition to historical data, Generative AI can produce synthetic data sets - for example depicting various types of storm damage - to augment existing data collections and increase the accuracy and diversity of risk models.

“Synthetic data is critical to innovation,” said Bipin Chadha, vice president of data science at CSAA Insurance Group, in a podcast with Manoj Kumar, global analytics leader for insurance and Genpact.

The discussion with CSAA, entitled "Journeys in Transformation – Transforming the insurance value chain with generative AI" is available here:

Source: PropertyCasualty 360, https://www.propertycasualty360.com/2024/03/12/four-ways-generative-ai-helps-insurers-manage-climate-change/?slreturn=20240212055829