Capco Journal 54AI and Digital Transformation of Insurance Markets.pdf (251.07 kB)
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Artificial intelligence and digital transformation of insurance markets

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journal contribution
posted on 07.02.2022, 10:22 by Christopher P. HollandChristopher P. Holland, Anil KavuriAnil Kavuri
Artificial intelligence (AI) is recognized as a strategically important technology because it has the potential to exploit human-like intelligence at machine scale and speed. However, the hype surrounding its business use masks the AI phenomenon and makes it difficult to analyze and evaluate in a systematic manner. Current approaches to defining AI tend to focus on its technical aspects and neglect the business, ethical, legal, and regulatory context. To remedy this deficiency, an AI systems approach is taken that defines AI within a broader systems framework. This is important because it provides a richer set of concepts that relate AI technology to business processes, business models, ethical considerations, and the legal and regulatory environment. A new framework of digital transformation is proposed, which is based on a synthesis of a new AI systems definition and business model concepts. The digital transformation model is illustrated with two global leaders in insurance markets, Ping An and Tesla insurance. In both cases, a similar causal model of digital transformation, continuous innovation, and rapid growth is identified that exploits the AI digital flywheel effect. The managerial and regulatory implications of the case study analyses and conclusions are described, and future research opportunities are outlined.

Funding

Technology Driven Change and Next Generation Insurance Value Chains (TECHNGI)

Economic and Social Research Council

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History

School

  • Business and Economics

Department

  • Business

Published in

Journal of Financial Transformation

Volume

54

Pages

104 - 115

Publisher

Capco Institute

Version

VoR (Version of Record)

Rights holder

© The Capital Markets Company (UK) Limited

Publisher statement

Reproduced with the permission of the publisher.

Publication date

2021-11-01

Copyright date

2021

Language

en

Depositor

Prof Chris Holland. Deposit date: 7 February 2022

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