Artificial Intelligence Is Impacting Insurance Policies. Here’s How Ai Is Lowering The Premiums


Artificial Intelligence Is Impacting Insurance Policies

AI understands when you are a reckless driver, or on the other hand if you are careful, and respect the highway laws. If you are among those good drivers you can save on your insurance policy.


This is a new advance in insurance. It is supported by algorithms that calculate the percentage of risk. This can be a real advantage for you and me.


But it will not depend only on how you drive. To get better prices you will also need to change how you think about this technology.


You will have to accept AI is not a threat to your freedom, it is not spying, it will keep your data and lifestyle updated, just like a good friend.


Let me explain exactly what I mean by this.


I am informing you, I repeat, there is a revolutionary change in the world of insurance right around the corner. Not only car insurance, but also home insurance, your business, and other items we own.




Why do I say that young people will also benefit from this innovation?


Because they are usually the most affected. There is the prejudice that when you have little experience, you are prone to have more accidents.


Now, what happens when your insurance policy is based on Artificial Intelligence?


There will be reasonable insurance for everyone.


“Because it will be based on algorithms, not on assumptions and statistics.”


Let me be clear. There is a big difference in the way policies are decided now. In the near future it will be evaluated:


“On the basis of something that is measured on real and continuously updated data. Using this information the insurance premium will be adjusted. “


So, when when you are a new driver going to your agent to create a policy, this will no longer happen: he opens the computer, enters your personal data, and the system has already rated the insurance policy.


” What will happen instead, is an algorithm will follow all your movements through a type of onboard computer in your car. ”


Starting the first few weeks, it will evaluate whether you follow the speed limits, if you brake sharply, if you stay in your lane and if you act recklessly.


Your policy will be based on all this information that is calculated.


So a lot more data will be translated by AI, based on your driving habits:


Good Motorist Mediocre Motorist Dangerous Motorist


Obviously, the idea is to merge information.


Right now, the only statistics that agencies have are the number of accidents by age, class, and location.


Basically, if you are a good motorist and live in a sketchier part of the city, you pay more for the other aspects of the policy.

Artificial Intelligence Is Impacting Insurance Policies



This combo of insurance and artificial intelligence could also be applied in other areas.


For example for your home or in businesses.


“There may be water leakage sensors and thermostats that inform you about the condition of a structure.”


Just like this data established driving habits to determine insurance rates, that is how this information will be used.


But …




That’s what I thought in the beginning. This is essential to create new rates tailored to customers. Like a suit that is tailor-made for you.


A tailor cannot create a spectacular suit for you if he does not take all the measurements of your body in great detail. With the tape measure that measures your shoulders and waist and so on …


“The system will gather information several times per second”


With artificial intelligence:


“It will be essential to analyze huge data sets and search correlations and anomalies to help data processing ”.


Using this process there will be an advantage for both insurance companies and customers.


Obviously, if insurers can better assess the level of risk with AI, they can offer better rates.


That will be an advantage if you are a good driver. Your brand new home will be safe Your business will have all safety systems in place and there won’t be an accident in years or ever.


In order to take advantage of this, you will have to make one exception:


“A more precise evaluation of available data and of your habits (for example driving) in return for the financial reward”.


But monitoring will also have a second advantage. It will be like having a navigator with you always.


Similar to the navigators of the Rally champions. You know, the races that are done on country roads with all those curves at full speed?


Those great driving champions would not be able to navigate with such precision without a person next to them giving every detail of the route and the driving dynamics.


That is what artificial intelligence will do.


It will be a feedback loop that will give a mediocre driver, a recommendation like,


“You tend to brake pretty hard at stop signs.”


Sounds pretty cool to me. But, there is still one aspect that should not be taken lightly …

Artificial Intelligence Is Impacting Insurance Policies



The more artificial intelligence approaches our lives, the more new regulatory challenges arise.


Because these sophisticated (and invisible) analyses made by algorithms must not negatively affect your life and that of your children.


Making it essential that insurance companies are transparent about how premiums are calculated. How and what kind of data is taken from the system needs to be disclosed.


The inability to fully understand the technology could result in very broad regulations.


It is the right of American citizens to feel protected and safe even if they are monitored by an AI in their own home, their car, or their business.


Their concerns must also be considered. For many consumers, this new aspect of the future is already disliked and people are suspicious.


I believe it is right to be 100% protected. I am an almost millionaire Italian entrepreneur, and every time I have not met the needs of my client I have lost that client.


By the way … I’d like to introduce myself. Here I am below…



If you want to have a great time and discover some funny things to share with friends follow my Twitter profile. It will soon become one of the most controversial and funny Twitter profiles:


Did you know that The Italian Nico Nobili – SirNickNite created the first project that combines technology with humans. Make innovative products that adapt and blend with humans and are supported by artificial intelligence. Discover by clicking here:


Nico Nobili —Alias SirNickNite



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