Artificial intelligence (AI) and captives-what does the future hold? A look at current trends in the use of AI by financial services and specifically the insurance industry. We explore how these trends may affect different segments of the captive industry.
Are captive insurers participating in the innovation and productivity changes reshaping the insurance industry? We discuss some recent trends and look at three key technologies impacting the insurance industry.
Machine learning is spreading quickly across many industries, including the insurance sector with applications in actuarial analysis, and is showing promising results for making better predictions and automating manual tasks. Advances in cloud computing provide the ability to speed up the time it takes to do so.
Parametric coverage is not an indemnification product. Instead, with parametric coverage, a benefit payable is determined in advance of the policy purchase by estimating the loss as accurately as possible, subject to certain conditions being satisfied. The policy cost is based on a predetermined trigger.
Data analytics and predictive modeling continue to evolve. Captive insurers are advised to understand the concepts and costs involved. Data analytics can help optimize the captive's risk appetite and risk portfolio.