Artificial intelligence is expected to lead to more flexible, relevant, and customer-centric insurance products. This is according to PolicyStreet Co-founder and Chief Product Officer Winnie Chua, who said that for many insurers, the shift is not just about efficiency but also about fundamentally rethinking how coverage is designed and delivered.
“AI is playing a key role in enabling the development of new types of insurance products in Asia, particularly those that are more personalised and usage-based,” said Ms Chua. She added that by drawing on alternative data sources and advanced analytics, insurers are now “better equipped to assess risk at a more granular level”, allowing them to move beyond one-size-fits-all offerings.
Ms Chua said that the development of technology is especially significant in markets where traditional insurance products have not always kept pace with the realities of modern consumers. “With AI, insurers can design products that are more closely linked to actual behaviour or usage, rather than relying on broad assumptions,” she said. In practical terms, this enables “more dynamic pricing models and more relevant coverage”, reflecting how people live and work today.
Such innovation also has important implications for accessibility. As insurers refine their understanding of customer behaviour, they are better positioned to serve groups that have historically been overlooked. “By focusing on specific needs and usage patterns, insurers can offer more affordable and targeted solutions, particularly for underserved segments such as gig workers, freelancers, and small businesses,” Ms Chua said.
Yet, while the technology is advancing rapidly, its success ultimately hinges on trust. “The success of these products still depends on data availability, customer understanding, and trust,” Ms Chua said. As insurers adopt more sophisticated tools, there is a parallel responsibility to ensure that products remain “transparent and easy to understand”, and that “data is used responsibly”.
As AI continues to evolve, it is likely to play an increasingly central role in shaping Asia’s insurance landscape. Ms Chua said that the challenge for insurers will be to balance innovation with clarity. To do this, they should deliver more personalised solutions without losing sight of the trust and simplicity that customers expect.