AI Is Already Being Used in Insurance Premiums
Artificial intelligence is transforming the insurance industry, a field that is essential for travelers, temporary residents abroad, or anyone seeking protection against unexpected risks.
Understanding how AI is reshaping the insurance market in the U.S. helps not only to grasp the present but also to prepare for the future.
AI and the New Model of Risk Assessment
Insurance companies used to rely on static data for their evaluations—such as age, history, address, and the type of vehicle or property.
While functional, this method left gaps, as it did not always reflect people’s real behavior.
With artificial intelligence, this process has become far more dynamic, especially thanks to machine learning, which analyzes thousands of variables in real time.
This way, prices and conditions are adjusted according to each customer’s profile.
A driver who uses telematics apps in their car, for example, may receive lower premiums if they drive safely.
Similarly, travelers who adopt healthy habits—such as tracking daily steps or keeping medical monitoring via apps—may gain advantages in health insurance.
This model is known as behavior-based insurance, ideal for those who seek personalization and transparency.
More Efficient Fraud Detection
Fraud in the insurance sector moves billions of dollars every year, raising costs for all customers.
Identifying irregularities has long been a slow process, heavily dependent on manual audits and lengthy investigations.
AI algorithms can now detect suspicious patterns in a matter of seconds, even across massive volumes of information.
This advancement not only reduces fraud but also speeds up payouts for honest clients.
In many cases, simple reimbursement or coverage requests are approved almost instantly, with no need for long reviews.
Customer Experience at the Core of Transformation
Another visible impact of AI is in customer service, which used to involve long phone waits, confusing forms, and delayed responses.
With smart chatbots and virtual assistants, interaction is now simpler and available 24/7.
In English, Spanish, or Portuguese, these systems can already answer questions, open claims, and even track process status.
In addition, AI is used to anticipate needs, offering new insurance options based on online behavior—for example, after purchasing airline tickets.
Personalization as a Competitive Advantage
In the American market, where competition between insurers is intense, personalization has become the key differentiator.
Artificial intelligence enables products to be shaped according to each consumer’s lifestyle.
Someone spending months traveling may purchase only temporary insurance, activated through an app.
Meanwhile, those with a more predictable routine may choose annual plans that automatically adjust based on their behavior.
This level of adaptation is only possible because AI systems cross-check information from multiple sources, including:
- Uso de dispositivos como smartphones y smartwatches
- Real-time location
- Purchase history
- Social media interactions
Impacts on Health and Travel Insurance
Among all segments, health and travel insurance are the most influenced by artificial intelligence.
In the U.S., where medical costs can be extremely high, AI helps predict risks and reduce expenses.
In emergencies, AI automatically directs policyholders to the nearest in-network hospital and processes coverage almost immediately.
Similarly, in travel insurance, companies already use AI to monitor flights in real time. If there is a delay or cancellation, compensation can be processed automatically—without the client even filing a claim.
The Relationship Between AI and Accessibility
AI is also making insurance more accessible, thanks to automation and faster data processing.
Apps translated into multiple languages and intuitive interfaces make adoption easier, helping to democratize insurance.
Ethical Challenges and Concerns
The use of AI in insurance raises important debates about privacy, discrimination, and transparency.
If algorithms misuse personal data, they could end up penalizing entire groups, increasing prices without clear justification.
That’s why regulators in the U.S. are paying closer attention, requiring greater transparency in AI-driven decision-making.
This oversight aims to balance innovation with fairness, ensuring consumers are not harmed.
Still, all signs point to artificial intelligence becoming the backbone of the insurance market in America.
For consumers—especially those on the move, traveling for work or leisure—this means more convenience, pricing that reflects real usage, and greater confidence that they will be protected against unexpected events.
