More than 100 insurance startups actively deploying AI

More than 100 insurance startups are actively deploying artificial intelligence (AI) solutions to bolster processes.

That was according to GlobalData, which said the progression of large language models (LLMs) and generative AI has marked a new phase for the insurance sector.

AI has become a trend that is here to stay in the insurance industry, with more firms starting to explore its uses.

LLMs are a form of AI algorithm that process natural language input and generate language outputs based on previously analysed data. 

Meanwhile, generative AI can generate new text, images, videos and other data sets using models.

GlobalData said that its Technology Foresights platform had monitored more startups using AI solutions and that such technology can help leaders ”effectively position themselves to navigate the dynamic market conditions and stay ahead of the disruptive forces”.

Sourabh Nyalkalkar, practice head of innovation products at GlobalData, said: “The evolving landscape of the insurance industry reveals the presence of over 100 startups actively developing AI-led solutions, all monitored on Technology Foresights.

”Industry leaders and stakeholders can leverage this innovation intelligence strategically to take prudent actions, such as forming partnerships or acquisitions early.”

Uses

Such AI solutions are being used for most sectors of insurance, including personal and property coverage.

Nyalkalkar continued: “In the property insurance space, a notable surge in innovation activity is apparent in both established industry leaders and upcoming startups.

“For instance, Tractable, which secured a $65m [£52.6] investment from Softbank in July 2023, has pioneered a groundbreaking computer vision-based solution for swift damage assessment of vehicles and buildings.

”Another startup – Yembo – is harnessing virtual three-dimensional property inspection technology to redefine both underwriting and claims processes.”