Willis Towers Watson Artificial Intelligence (AI) and Emerging Business Models in Insurance

Monday, 25 November 2019

This event explored how to deploy advanced analytics artificial intelligence (AI) and machine learning to good effect in the property and casualty (P&C) insurance market.

Early results from a collaborative research project between Loughborough University and Willis Towers Watson into the effects of AI on business models were presented, continuing the company’s deep commitment to industry research.

In 2018 Willis Towers Watson inspired research identified that “Artificial intelligence has the potential to improve a number of important processes and raise the understanding of risk drivers”.

One year on and this potential has been realised, as Altelium is now on the market. Richard Hilliard, Altelium country manager for North America, attended the Willis Towers Watson event which took place in London.

He said: “Altelium serves the insurance industry in precisely the way the market needs – to help reduce risk and identify opportunities – just as Willis Towers Watson predicted it would.

“Our new advanced predictive analysis system represents big data working at its best. It facilitates investment in green energy by providing solid information and facts about how electric batteries perform, something which has been missing until now.”

The event explored the competitive forces reshaping the insurance market, and classification of new business models.

The best fit within the model for Altelium would seem to be “strategic pivot.” This is because Altelium combines data innovation with business model change, where very fundamental operational questions about a product (electric mobile and static batteries) provide valuable information for financial products around them, such as warranties. It also allows new business models to develop around second life uses of electric batteries from vehicles.

References:

https://www.willistowerswatson.com/en-GB/Insights/2018/11/Finding-the-future-for-AI-in-P-and-C-insurance

https://www.willistowerswatson.com/en-GB/Insights/2019/11/artificial-intelligence-ai-and-emerging-business-models-in-insurance

About the Author

Jessica Friend