Due to regulations around artificial intelligence, 40% of AI algorithms in insurance services (from underwriting to marketing and claims handling) will utilise synthetic data to ensure system fairness and regulation compliance by 2027, according to IDC FutureScape: Worldwide Insurance 2024 Predictions — Asia/Pacific (Excluding Japan) Implications.
“Across various sectors, AI is revolutionising processes and driving transformative changes. In the insurance industry, AI adoption is reshaping operations, from enhancing risk assessment with synthetic data to optimising sales through generative AI-based tools,” said Surya Narayan Saha, research manager, Financial Insights, IDC Asia/Pacific.
Synthetic data
Synthetic data is an emerging solution that mirrors real-world scenarios to ensure privacy preservation, unbiased risk assessments, and cost-effectiveness.
“Integrating AI with emerging technologies like trusted data exchange and digital twins promises significant advancements, such as improved customer experiences and reduced operational costs. As AI becomes ubiquitous, businesses are leveraging its capabilities to innovate and stay ahead in the competitive landscape,” said Saha.
The 2022 AI Strategies Buyer View Survey by IDC reveals that around 18% of enterprises are leveraging synthetic data to address privacy regulations and secure data exchange in insurance services.
