Advisors Magazine Issue 98

AI algorithms make fast break into insurance A talk with former NBA player Christopher Gandy Artificial intelligence has been around for several decades, but its element of deep learning – using algorithms to model high-brow abstractions from a constant stream of connected data inputs – is already having an impact in the insurance and financial legacy industry.

There are plenty of sources nowadays for collecting massive amounts of personal data including smartphones, fitness trackers, smart watches, tech clothing, eyewear, medical devices and even footwear. For example, a wearable device that is connected to an actuarial database could calculate a consumer’s personal risk score based on daily activities as well as the probability and severity of potential events, according to a 2018 report from McKinsey & Company.