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Data machine: the insurers using AI to reshape the industry

Groups are building detailed customer profiles to inform pricing and try to influence behaviour

Take your medicine when the app tells you, do your exercise and eat well. As long as you “show good compliance” and share the data, you will reduce your health risks — and your insurance premium. 

This is how Xie Guotong — the chief healthcare scientist at Chinese insurer Ping An — describes its combined insurance and digital “disease management” service for people with type-2 diabetes. Powered by artificial intelligence, it is just one example of a big shift going on in the industry.

AI, which sifts data and aims to learn like humans, is allowing insurers to produce highly individualised profiles of customer risk that evolve in real time. In parts of the market, it is being used to refine or replace the traditional model of an annual premium, creating contracts that are informed by factors including customer behaviour.

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