A move towards prevention through predictive technologies will become commonplace in certain insurance sectors, according to the chief strategy and business development officer at the global insurer, AXA.
The two main trends that are making insurers shift to prevention, noted Georges Desvaux, are the growing complexity of risks society faces, and the ever-increasing availability of data and artificial intelligence tools.
In recent years, Desvaux added, more of their clients are talking about the importance of prevention, and their expectation for their insurer to be able to help them mitigate risks in their business, no matter the industry.
AI, data and a digital insurance ecosystem could have many potential benefits and applications, from automobile accidents to the reduction of crop loss through efficient resource allocation.
But the most powerful application of a digital insurance ecosystem according to Desvaux, is against technology risks.
He commented: “Many new risks emerge, as the industry evolves, such as increased severity of nat cat on physical assets, or cyber security on the ever-increasing digital part of the economy.
“To protect these, we need risk transfer but more importantly prevention to reduce the risks and severity of claims, thus fulfilling our role as partners.”
There is also an opportunity for AI and similar technology to help identify vulnerabilities in global supply chains or similar complex systems and mitigate issues like the global supply chain interruption caused by the pandemic, added Desvaux.
Scott Gunter, CEO at AXA XL added: “We have access to an enormous amount of data and new technologies, such as satellites, drones, and sensors, to evaluate and even “predict” adverse events in real-time.
“These tools allow us to be there for our clients, many of which are among the largest companies in the world, in ways we could have never previously imagined.”
AXA has recently launched a Digital Commercial Platform (DCP), which combines real time data and analytics collected through satellites, drones and sensors, with AXA’s expertise in risk prevention services and the Group’s underwriting and claims capabilities.
Platforms like the DCP, according to Gunter, can mitigate risk while contributing to solving societal challenges.
Desvaux said: “The aim is to move beyond “simple” risk management and prevention toward societal benefits, whether that is to anticipate the locations of wildfires or floods, to help build communities that are more strategically resilient to climate change, or to provide real-time, targeted services in emerging or precarious markets to bolster their financial stability.
“For us, this is what it means to act for human progress by protecting what matters: using the data and tools at our disposal productively to maximise benefits for all.”