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Colossus and Xactimate: A Tale of Two AI Insurance Software Programs
February 7, 2020
When Charles Dickens penned “It was the best of times, it was the worst of times,” he certainly was not referring to the use of artificial intelligence (AI) in the property insurance industry. Nonetheless, the quote aptly describes the industry’s current circumstances. AI—a trending topic in the insurance industry and business world at large—has become “the subject of intense debate given its [transformative] potential.” Optimists describe AI as a positive force that improves safety, streamlines underwriting, makes claims processing more efficient, and increases cost savings. Pessimists proclaim that AI increases liabilities; contributes to job loss; and causes revenue to plummet as claims, risks, and premiums decline.
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