The Need for Transforming Business Models in Insurance Using AI – Case Study

We already adopted the fact that digital transformation is happening in all sectors, even financial such as insurance, but fact that software is taking over some important processes in businesses made us consider using AI. We can see how AI is disrupting the business of various sectors in practice. The insurance sector is also being disrupted by the advent of AI. In this paper, we will describe a traditional insurance process, with a look at the specific innovations that AI is introducing in the insurance industry itself and see how it is possible to use AI in local insurance company. Although insurance fraud is the most common form of use of artificial intelligence, this paper will emphasize that artificial intelligence can automatically analyze large amounts of data, identify patterns, and make quick decisions, which can lead to optimization of business processes and cost reduction. The insurance industry is going through similar problems as other industries, but it has its own specifics since insurance is a highly regulated area by regulatory agencies and business outside the framework of the home countries. In this paper we will emphasize the fact that we need new skills, especially for using specialized AI tools in the desire to transform any business model. We will use the case of the insurance company from Bosnia and Herzegovina.