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Embracing AI ‘a crucial step’ for industry 

Technology plays a pivotal role in shaping the future of the insurance sector, Xceedance CEO Arun Balakrishnan says. 

Mr Balakrishnan, who will visit Sydney for the ANZIIF Australian Insurance Industry Awards on August 24, has highlighted the need for the industry to adopt “technology-driven solutions”. 

He says insurers need to craft insurance products that effectively manage contemporary risks in an interconnected world and underwrite policies that genuinely reflect the complete range of risks. 

“The integration of technology is inevitable and artificial intelligence (AI) and related methods will play a crucial role in this transformation,” Mr Balakrishnan says. 

Xceedance says it has demonstrated the practical use of technology through the Azure Open AI Service and ChatGPT.  

“Generative AI offers a practical solution to improve risk assessment, policy review automation, and underwriting accuracy,” Mr Balakrishnan says. 

He emphasises the importance of understanding prompt engineering to leverage the technology effectively. 

“Language models can significantly enhance risk assessment by analysing extensive data and evaluating potential risks associated with insurable assets. Continuous learning through prompt engineering ensures the models adapt to evolving risks.” 

He says the integration of AI and prompt engineering can bolster fraud detection capabilities, helping insurers identify patterns in high-risk or suspicious claims. “Tailored prompts guide investigators toward potentially fraudulent activities,” Mr Balakrishnan says. 

“As our world becomes more connected, integrating embedded insurance in everything and anything we do will power the next phase in the insurance industry’s evolution.”