Artificial intelligence (AI) is becoming increasingly important in the insurance industry, helping insurers manage risks more effectively, streamline operations, and improve customer experiences, according to John Billis, Vice President of Risk Management Solutions at Aviva Canada.
“Machine learning, predictive analytics, and generative AI are helping insurers better assess risks and provide more personalized service to their clients,” he shared in a presentation at a RIMS Canada conference.
Here are three important ways Aviva is integrating AI to help with risk management.
1. Improving data management
Aviva Risk Management Solutions (ARMS) Canada has begun using generative AI (GenAI) tools like ChatGPT and Microsoft Copilot to help synthesize lengthy engineering reports to help underwriters with their review process.
“Some engineering reports are 40-60 pages long and GenAI can provide a 5–10-page summary report.”
2. Making data-driven decisions
AI is also presenting new opportunities to make more better, data-driven decisions for ARMS consultants. Billis pointed to the way insurers can better access important information from the National Fire Protection Association (NFPA) with AI.
“There are a series of NFPA codes and standards that are adopted into national building codes in Canada. For the longest time, it was a paper copy; they’ve recently released a digital version that leverages AI to support code search functions,” he said.
“It’s transforming how we look up codes and standards as we assess risk. For example, if we’re looking to make sure automatic sprinkler systems are adequate for an occupant class, we can do a quick search by words or topic and the AI can zoom into specific, relevant codes. This speeds up our ability to make recommendations that are current and compliant.”
Deploying AI in this way also helps train new consultants. “Over years of experience, a field engineer becomes more knowledgeable about key risks and issues. If someone starting out has instant access to that bank of knowledge via AI, they’re going to be better equipped to do their job right out of the gate.”
3. Increasing efficiency and innovation in risk consulting
ARMS consultants are also using GenAI to create summary reports based on bullet points and key words rather than going through the laborious process of writing from scratch. They use insights from AI to make their reports more meaningful.
“With predictive data and analytics, we’re able to fine tune the reports we create for underwriters. Instead of trying to explain systems, processes, and controls, we can use the data to create reports that are more efficient and explain what is specifically going well and opportunities to improve.”
Using AI, they can also determine which Aviva customer accounts are more likely to need proactive risk management advice based on historical claims data.
“Traditionally, we would prioritize accounts that have high insured values or severe exposures. With AI, we can input historical claims data and cross reference with current customer accounts to help us prioritize who we interact with, at what frequency, and why,” he said.
“For example, if data-based AI is telling us to look at woodworkers because they have the greatest severity of losses, that would help us make better decisions to focus on the right accounts at the right time.”
With telematics, AI is also providing real-time data in fleet management that can help business owners and their insurers identify drivers’ skills, the conditions they operate in, and what kind of training may be needed to prevent an accident before it happens.
Real-time data and telematics also play a huge part in machine-to-machine technology. “If a business has a smart building, it can communicate that it’s having issues with its heating system before electrical components overheat and a fire occurs.
“This type of technology will help us be more proactive with interventions instead of reactive.”
The integration of AI in loss prevention is proving to be a game-changer, revolutionizing risk management solutions. Billis said embracing AI is essential for staying competitive, fostering innovation, and building a resilient future.
“Aviva is at the forefront of leveraging AI in this way and that’s where we need to be because it’s evolving fast.”
ARMS specialists are here to help
If you’re looking for support in reviewing your risks, Aviva Risk Management Solutions has professional risk consultants across Canada who can provide expert advice and resources. Reach out to us at arms.canada@aviva.com.
