Earlier this week, we were thrilled to announce our inclusion in the 2022 AIFinTech100 list.
The AIFinTech100 is an annual list of 100 of the world’s most innovative AI solution providers for financial services selected by a panel of industry experts and analysts.
According to FinTech Global: “These are the companies every financial institution needs to know about as they consider and develop their digital transformation strategies and new customer propositions.”
To coincide with Greater Than’s inclusion in the AIFinTech100 list, FinTech Global conducted an interview with Greater Than Founder Sten Forseke to discover how our pattern AI is transforming the forecasting landscape for underwriters and risk managers. See extract below:
Is the impact that AI is having on precision pricing beneficial? Forseke believes that it is so, stating, “The bottom line in all businesses is that pricing is everything. The better you can price a product, the more profitable you’ll become. When pricing risk, it’s highly delicate, so the better that you can price this risk, if you are able to improve your pricing, if you can move the needle a millimetre then that has a huge impact on the bottom line.
“So, with our AI, the benefit is that the pricing will then reflect the real risk that is faced and become much more fair and much more transparent.”
The wider insurance industry – like many other industries – has witnessed changing trends since the pandemic has begun to lessen in global impact. With more people conducting their insurance business behind a screen compared to pre-pandemic, the industry has had to readjust, with the changing trends being a reflection of that. Of those that are dominating currently, AI is one of those way out in front.
How will AI change the wider insurance industry? In the area of motor insurance specifically, Forseke hopes that his company will be a contributor to ensure less dangerous and more efficient energy use of vehicles. He added, “If you look at the industry, look at the mobility of transportation every year, 50 million people get severely injured on the roads at the cost of $1.2bn a day. So, AI will help with individualised pricing and an individual’s pricing will reduce that number by at least 10%. This is how I think AI will help move the industry to become a large contributor to more efficient energy usage and less crashes on the road.
With the sands of insurance shifting with help from AI, the trends that permeate the industry are also shifting. According to Forseke, one trend that appears to be standing out and dominant in the industry is that the wider market is eager for new solutions that strongly have the customer in mind.