ARTIFICIAL INTELLIGENCE TOOLS IN INSURANCE: IMPACT ON INSURANCE COMPANY FINANCES AND SECURITY

Abstract

The article examines the role and significance of artificial intelligence tools in modern insurance and their impact on the finances and security of an insurance company. The relevance of the study is due to the acceleration of the digital transformation of the insurance market, the growth of data volumes, increased competition, and increased requirements for the financial stability and information security of insurers. The purpose of the article is a comprehensive analysis of the main artificial intelligence tools used in insurance and an assessment of their impact on the financial performance and security system of an insurance company. The paper examines machine learning tools, big data analytics, chatbots, intelligent decision support systems, and Internet of Things (IoT) technologies used for underwriting, insurance risk management, insurance claim settlement, fraud detection, and insurance product personalization. The impact of these tools on cost optimization, increased risk assessment accuracy, improved insurance payout forecasting, and increased profitability of insurance companies is analyzed. Special attention is paid to the issues of insurer security in the context of the implementation of artificial intelligence, in particular, the risks of data leakage, cyber threats, algorithmic bias and dependence on the quality of incoming information. The need to combine AI tools with effective mechanisms of cyber protection, internal control and compliance with regulatory requirements for the protection of personal data is substantiated. The article concludes that the implementation of artificial intelligence tools contributes to strengthening the financial stability of insurance companies and increasing their security level, provided that there is a comprehensive and responsible approach to digitalization. The results obtained can be used in the practical activities of insurers, as well as in further scientific research into the problems of insurance development in the digital economy. It is concluded that the further development and scaling of AI in the activities of domestic insurance companies require a comprehensive approach that combines investments in digital infrastructure, improving the regulatory environment and forming relevant personnel competencies. The results obtained can be used by insurance companies and scientists to develop strategies for the digital development of the Ukrainian insurance market.