Protection  

What insurance specialists can learn from NASA about AI

  • To be able to explain how AI can change businesses
  • To summarise how insurance companies are using AI
  • To list ways in which real-world opportunities for customers can be created by AI
CPD
Approx.30min

 

From understanding the origins of space to improving customer journeys in insurance, AI has wide and important applications.

While the two disciplines seem worlds apart, a former NASA communications specialist has told FT Adviser there are bigger lessons to learn about how to use AI to harness better data, analyse it effectively, and improve processes to help financial services clients.

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Speaking to editor Simoney Kyriakou on the latest Editor's Podcast, Dr Christian Westermann, who is now group head of AI and data transformation at Zurich, said: "You have the same core puzzles to solve.

"Even if you build space instruments you have budget constraints. You need to assess what sort of data you want to collect and what you want to find out about the universe, and deliver to a deadline.

"Similarly, if you are an insurance adviser or provider, you have a similar budget and timeline, and under similar conditions you do the best to improve the value chain."

The one big difference, he said, is that in space science, the planetary movements will not wait for you - so the "deadline is really a deadline", and projects have to deliver by that date. 

Similarly, as scientists are using AI and exploring how it affects their business, Westermann said AI and associated technology can affect every single business. 

Because everyone now has access to things such as Chat GPT, everyone can explore and everyone can slowly start to understand how this technology can impact their business or productivity.

But he said: "I do not see [advances] as a challenge. Even in 1900 farming was done with horses and then tractors and machinery was developed - but someone had to produce those machines. Technical advancements have always been there. And I am grateful for that."

He said there was a challenge, however, in education and staying up to date. 

"If we can understand things now that we could not understand before, that is still helping me. But the challenge is that we need to prepare, to constantly understand what is going on [with AI]."

He added: "Not in a way that people should be scared, but so that we are prepared for this change.

"And therefore that means a lot of education and upskilling is needed, so that people understand what could happen to their profession, to their work or their living. This is what we need to keep an eye on."

Also during the podcast, Westermann discussed the issues around cybersecurity and companies protecting themselves in terms of AI use, as well as discussing how Zurich is investigating and implementing AI within its own protection business. 

"AI is here, and AI is here to be used", he said.