Reimagining Life Insurance with Brain AI Advancements

5

At the Online Summit in Sydney, speakers noted the exciting potential of AI and neuroscience to reshape healthcare outcomes and insurance services. Professor Matthew Kiernan, CEO of Neuroscience Research Australia, discussed how AI-supported neurological diagnostics are transforming the field, which could lead to improved treatment and management of neurological disorders.

One compelling example Kiernan gave was a UK study where blood samples from 55,000 participants were analyzed over two decades. Among them, 1,000 developed Alzheimer's disease. By running these samples through AI, researchers identified specific proteins that could serve as a diagnostic test for Alzheimer’s, a development that promises much more accessible and affordable screening.

Current Alzheimer’s diagnostic methods, like amyloid PET scans and lumbar punctures, are costly, ranging from $5,000 to $7,000. The new AI-driven blood test could reduce this to about $100, making early detection more feasible.

Kiernan emphasized the crucial role that superannuation and insurance sectors can play in supporting the initial high costs of such innovations until they become scalable and more affordable. "You’re the brilliant minds who need to devise solutions, as many groundbreaking therapies are initially exorbitant," he stated.

Advancements in AI allow for more meaningful data pattern recognition, improving predictive capabilities. Ajay Agrawal, Professor of Strategic Management at the University of Toronto’s Rotman School of Management, explained that AI, at its core, is about prediction. "It uses current information to generate data we don’t have, and it's getting exponentially better over time," he said.

Agrawal pointed out three essential predictions in insurance:

1. Marketing to the right customer with the appropriate products.
2. Predicting the risk and likelihood of claims.
3. Validating claims to determine legitimacy.

This evolving predictive technology holds the potential to overhaul how the insurance industry operates by reducing uncertainties and improving outcomes. For instance, personalized engagement with members can ensure communication is effective and relevant, enhancing satisfaction and proactive health management.

On the healthcare front, AI can predict patient risks, detect anomalies through imaging, and identify effective treatments. Additionally, it aids in fraud detection and claim validity assessments, acting as an enhanced statistical tool.

Agrawal encouraged insurers to "lean further into" these capabilities, advising to not only understand and underwrite risk but also manage it proactively. He suggested that with AI, insurers could begin knowing more about an individual’s risks and how to mitigate them than the individuals themselves.

He also emphasized that the insurance industry should focus on meaningful engagement rather than merely collecting data. The goal is to use AI’s learning capabilities to drive better engagement and outcomes. "Machine intelligence is unique as it learns from use, unlike any tool we’ve had before," Agrawal noted.

As cited by the original article from Investment Magazine, the potential for AI and neuroscience to drastically reshape life insurance signifies a new era where technology not only predicts and underwrites risk but actively reduces and manages it.

Published:Thursday, 8th Aug 2024
Source: Paige Estritori

Share this news item:

Insurance News

Clear

Landmark NSW Decision: Dog Walking Costs Covered in Car Crash Injury Claims 03 Jul 2025: Paige Estritori In a groundbreaking decision by the NSW Personal Injury Commission, an insurer has been directed to cover the costs of dog walking services for a car crash victim. The commission ruled that these services classify as domestic assistance under the state’s Motor Accident Injuries Act. This case could pave the way for broader interpretations of 'attendant care services' for claimants. - read more

Extreme Weather Drives $1.8 Billion in First Half Losses for Australian Insurers 03 Jul 2025: Paige Estritori Extreme weather events in Australia have resulted in significant financial impacts for insurers, tallying $1.83 billion in losses during the first half of the year. This comes as insurance companies gear up for further claims linked to ongoing severe weather in New South Wales. - read more

ClearView Names New Underwriting Head Amidst Strategic Changes 30 Jun 2025: Paige Estritori ASX-listed life insurer ClearView has announced the appointment of Peter Tilocca as Head of Underwriting, coinciding with key updates to its underwriting standards and definitions. Tilocca's extensive two-decade career in Australian underwriting includes leadership roles at Zurich, Noble Oak, One Path Life, and RGA Australia. His new role with ClearView commenced on 30 June. - read more

Ombudsman Supports Theft Claimant in Home Business Coverage Dispute 30 Jun 2025: Paige Estritori A recent case has seen a policyholder triumph over her insurer after the Australian Financial Complaints Authority (AFCA) ruled in her favour following a contentious dispute regarding home business operations. The controversy arose when the woman's theft claim was denied by her insurance provider, IAG, over allegations of fraudulent misrepresentation about the use of her rental property. - read more

AFCA Upholds Insurance Fraud Ruling Over Disputed Possum Accident 26 Jun 2025: Paige Estritori A motorist's claim that he crashed into a tree to avoid a possum has been denied by the Australian Financial Complaints Authority (AFCA), which supported the insurer's fraud decision. The incident involved the driver crashing his Jeep—insured for over $20,000—on a dimly-lit street, purportedly avoiding the rain-soaked motorway en route to the store. - read more