AI’s Role in Transforming Small Business Insurance

Hello from RSM Tasmania Insurance Brokers Hobart! Today, we’re diving into a topic that’s buzzing in the business world – Artificial Intelligence (AI).

While AI has been around for a while, the launch of ChatGPT a couple of years ago really pushed this technology into the spotlight. Now, businesses of all sizes are asking the $64 million question: how can AI help us?

Let’s chat about how AI is going to shake up your insurance needs and make running your small business both easier and, in some ways, a bit trickier.

Better Risk Assessment and Personalised Policies

You might be wondering how AI can help with insurance. Well, one of the big ways is through better risk assessment. Insurers are using AI to look at heaps of data – everything from your social media to data from IoT devices – to get a clearer picture of your business’s risks.

What does this mean for you? Essentially, your insurance policy can be tailored more precisely to your business. It’s like getting a suit that’s made to measure instead of one off the rack. This can also mean more accurate premiums that reflect your actual risk, which could save you dollars.

Real-Time Risk Mitigation

Imagine getting a heads-up from your insurer right when a natural disaster is happening. AI-powered analytics make this possible. If there’s a flood on the way, you might get a message saying, “Hey, if you can sandbag your property and move stuff off the ground floor, we’ll cover your losses. If not, your cover might be void.” This kind of real-time advice could help keep your premiums affordable, even as extreme weather events become more common.

Fighting Fraud with AI

Fraud is a headache for everyone, but AI is getting really good at spotting it. With advanced pattern recognition, AI can detect suspicious activity much quicker than we humans can. This means fewer fraudulent claims slipping through and, hopefully, more stable premiums for all of us.

Faster Claims Processing

No one likes waiting around for claims to be processed. AI is speeding things up by automating the boring bits and handling routine claims quickly. This means you get your claims sorted faster, and we can focus on helping you with more complex issues. Plus, AI-powered chatbots are always ready to answer your questions, making customer service quicker and more efficient.

The Cyber-Scam Threat

Now, while AI is helping in many ways, it’s also being used by the bad guys. Cyber-scammers are getting smarter, using AI to create convincing fake images, audio, and videos. Imagine a scammer pretending to be a supplier and tricking your accounts person into making a payment – that’s the kind of thing we’re talking about. Up to 95% of people can’t tell a good deep fake from the real deal.

That’s why it’s essential to become more ‘AI-literate’ to protect your business. And having cyber-insurance can be a lifesaver if, despite your best efforts, you fall victim to one of these scams.

Do You Have the Right Cover?

With all these changes, it’s more important than ever to make sure your insurance cover is up-to-date. Your business is unique, and your insurance should reflect that. Give us a call at RSM Tasmania. We’re here to help you review your policies and ensure you’ve got the cover that’s right for your business.

Final Thoughts

AI is transforming the insurance landscape, bringing both opportunities and challenges for small businesses. By staying informed and proactive, you can ensure your business is well-protected against emerging risks.

Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at RSM Tasmania Insurance Brokers Hobart. We’re here to help you face the future with confidence.

Talk to Roger Hosie and stay ahead with RSM Tasmania’s insights.
Call Now! (03) 6244 7854, or email roger@rsmtasmania.com.au.

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