Six Levels of Autonomous Insurance
Script error: No such module "Draft topics". Script error: No such module "AfC topic".
Six Levels of Autonomous Insurance[edit]
The Six Levels of Autonomous Insurance is a classification system that describes the degree to which an insurance company's operations are automated. This framework is inspired by the six levels of driving automation used for autonomous vehicles. It ranges from Level 0, where all tasks are performed by humans, to Level 5, where all tasks are automatnmus and capable of self-management.
Levels[edit]
Level 0: No Automation[edit]
At this level, the entire insurance operation is manually handled by humans, including underwriting, claims processing, and customer service.
Level 1: Assisted Automation[edit]
AI-supported tools assist humans in decision-making and streamline some operational tasks such as data analysis and preliminary underwriting.
Level 2: Partial Automation[edit]
Algorithms autonomously execute certain core processes like claims adjudication or risk assessment. However, the majority of tasks still require human involvement and oversight.
Level 3: Conditional Automation[edit]
Algorithms manage the full insurance life cycle, including policy issuance, claims processing, and regulatory compliance. Human oversight is only required for complex cases or specific regulatory considerations.
Level 4: High-Level Automation[edit]
At this level, algorithms can autonomously execute all tasks across various scenarios. Human involvement becomes optional and is typically limited to strategic decision-making or exceptional cases.
Level 5: Full Automation[edit]
Algorithms handle all operational aspects, from underwriting to claims settlement. The system is fully capable of self-management in all conditions, eliminating the need for human oversight.
Examples of Companies by Level[edit]
- Traditional Insurers: These companies typically operate at Levels 0-1. All key decisions and processes are largely handled by humans.
- InsurTechs: Companies like Lemonade Insurance and Next Insurance operate at Levels 1-2. They use AI and algorithms for specific tasks like customer service or data analysis but still rely on human expertise for core processes.
- Choco Insurance: Positioned at Level 3.5-4, Choco Insurance employs algorithms to manage most aspects of the insurance life cycle and aims to achieve Level 5, fully autonomous operations.
References[edit]
This article "Six Levels of Autonomous Insurance" is from Wikipedia. The list of its authors can be seen in its historical and/or the page Edithistory:Six Levels of Autonomous Insurance. Articles copied from Draft Namespace on Wikipedia could be seen on the Draft Namespace of Wikipedia and not main one.
