Written Assignment. Identification of the industry.

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Insurance Industry
Identification of the industry
The insurance industry comprises of a large number of organizations offering different services in the form of various aligned insurance agreements. Moreover, the primary idea of the insurance industry is that; one of the parties who is the insurer has no excuse in a matter to guarantee the payment for any uncertain event in the future (Bach and Tristan 128). On the other side, the other party who is the insured who is also referred to as the policyholder will have to ensure that he pays a smaller amount to the premium to the insurer for the sake of exchange as a form of protection for the uncertain future occurrence.
Essentially, the slow-growing perception is not much stronger as it was way back in the 70s but is usually true when it comes to the industry's comparison with other financial sectors. Notably, it is worth noting that the insurance industry is vast and comprises of different strategic players that seek to be operating in different spaces. A good example is the life insurance companies that seek to conduct their operations on legacy planning and to ensure that they replace all human capital value (Das, Chandra, and Shalakha 8). Additionally, the health insurers ensure to cover all medical costs, any form of causality, and property, while accident insurance seeks to replace the value of homes and other valuables. Importantly, insurance companies can easily be structured in different ways. One of the ways include; either as a being a beautified traditional stock company that is comprised of both outside investors and other mutual companies where all the entitled policyholders are deemed as being the owners. Over the years, the insurance industry has sought to make use of the fast-moving technology for the sake of moving fast with the changing world (Eling, and Joan 190). The newly updated technology is of greater use as it helps the industry store up to date data and makes it much more straightforward, keeping track of the information concerning its members in its database. Therefore, this paper seeks to discuss how the insurance industry operation has been effected through the use of AI technology.
Identification of the technology
Artificial intelligence (AI) is the simulation of human intellect that is employed for use in various electronic devices that are programmed in such a manner that they tend to think and mimic the actions of humans. Again, AI is a term that can be used or applied to machines that exhibits the traits that are highly associated with the human mind, such as learning and problem-solving techniques (Bach and Tristan 128). Mostly, the significant characteristics of AI are its ability to easily rationalize and take the legal actions that have the best of chance in achieving a specific goal. Based on AI's ability to perform extraordinary activities, it is easily used in the insurance industry more simply (Fakhri, Farzad, and Javad 81). Notably, the AI is very useful in the insurance industry in the sense that the industry makes AI as a critical competitive differentiator who will be much more useful in the future of intelligent insurance. On the same note, the AI has the power and the capability of making sure to affect the insurance industry in a couple of ways. One of the ways how AI is proving its greater use in this industry is the use in claims processing, underwriting, making sure that customer service is more perfect, and reducing the fraudulent activities in the sector
Explanation of the technology
The AI technology is dated back in the year 1956, whereby the term AI was first coined by a man named McCarthy when he presented the first academic conference based on the given subject (Giubilini and Julian 170). Later on, Alan Turing saw it worthy to note a paper showing how good and excellent the need for a machine which could simulate human beings alongside their ability to do intelligent things.
Consequently, the deep learning of technology that is required to better the insurance industry is already at play and is seeking to better the future of insurance. On the same note, the AI is bound to influence a change of the “insurance industry from the 'detect' and 'repair' model to 'predict' and 'prevent' model” (Giubilini and Julian 170). Such a process will easily be effected upon insurers, suppliers, and all financial intermediaries become adept at using advanced technologies.
Figure 1: The history of AI. Source; (Lu et al. 370)
Explore the benefits and drawbacks of the technology to the industry
Benefits
AI is working to evolve while at the same instance, create viable opportunities for the entire business growth. Therefore, there is clear evidence of how the insurance industry i...