ARTIFICIAL INTELLIGENCE IN THE MARKET OF INSURANCE SERVICES

Abstract

The article is devoted to current issues related to the use of artificial intelligence technologies by insurers in providing insurance services. The dynamics of artificial intelligence usage in the global insurance market have been analysed. The regional structure of artificial intelligence application in the global insurance market has been studied. The opportunities for the use of artificial intelligence in various segments of insurance activities such as risk assessment and underwriting, claims processing, marketing, fraud detection, billing, and payroll calculation have been identified. The consequences of implementing artificial intelligence technologies in underwriting, risk assessment, marketing activities, and claims processing by insurance providers have been characterized. Problems related to the application of artificial intelligence in the insurance market have been identified, such as the difficulties in integrating AI technologies with outdated information systems of insurance providers and with diverse sources of fragmented and contradictory data, the need to comply with regulatory requirements for the protection of clients' personal data, the necessity of carefully calculating the effectiveness of investments in AI technologies, and overcoming biases in AI algorithms related to unfair treatment of policyholders. The trends in the development of artificial intelligence usage in the insurance market have been outlined, such as the activation of Internet of Things (IoT) devices, the integration of conversational AI into chatbots for insurance providers, the broader implementation of generative AI, the intensification of the development of agency networks based on the use of AI technologies, deeper penetration of AI into digital banking insurance, and the strengthening of insurers' integration into ecosystems to improve customer satisfaction. The use of artificial intelligence technologies will allow for the consideration of individual consumer needs, accelerate customer service, ensure rapid data collection and quality analysis, assess insurance risks and demand for specific insurance products, minimize the risks of insurance providers, and enhance the competitiveness of insurance service sellers.