Aon deploys AI to uncover underwriting trends

Aon has deployed artificial intelligence technology to help it uncover trends from thousands of insurance documents, unlocking otherwise trapped insight into the underwriting process across all its major lines of business.

The AI technology, Groundspeed harvested data from 170 million data points including limits, deductibles and exposures, and representing US$142bn in total incurred losses and US$1.7trn in total insured value. It uses machine learning and natural language processing to help identify underlying causes of claims, industry benchmarks and losses versus premium – driving opportunities to expand coverage and help businesses reduce their total cost of risk. It can also be used to inform new risk transfer solutions and treaties aimed at reducing premium for clients by developing a better understanding of loss trends within different lines of business and risk segments.

Senior vice-president of Enterprise Analytics, Innovation & Partnerships at Aon, Steve Petrevski said the technology is revealing information that would otherwise be impossible to deduce on such a scale. “Aon’s industry expertise and Groundspeed’s technology expertise have combined in this partnership to develop artificial intelligence capabilities that unlock insights that were trapped in a broad range of unstructured files and documents. Insurers will benefit from increased operational efficiency and a higher understanding of risks, while businesses can take advantage of more relevant products,” he said.

Insurance carriers receive over a billion pages of documents each year in support of underwriting, claims management and risk mitigation. The manual process of extracting key data led to a loss of 95% of valuable information, unsatisfactory accuracy and bottlenecks in the underwriting process.

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