With the advent of deep learning technologies such as convolutional neural networks, artificial intelligence (AI) will be able to simulate human capabilities in perception, reasoning, learning, and problem-solving.

In this transformation, insurance will evolve from the current “detect and repair” model to a “predict and prevent” model, fundamentally reshaping every aspect of the insurance industry. Consumers, financial intermediaries, insurance companies, and suppliers are increasingly leveraging high-tech solutions to improve decision-making, enhance operational efficiency, reduce costs, and optimize customer experiences. Against this backdrop, the pace of change is accelerating, attracting a new wave of outstanding talents. Among them, Zack Peng Cheng, founder of Seel (formerly known as Kover), represents one of the top talents in the field of AI-powered insurance.

Zack Peng Cheng and the Founding of Seel

Zack Peng Cheng founded Seel (formerly Kover) in November 2019 and serves as its CEO. Headquartered in San Francisco, Seel primarily provides new types of customized insurance products for the North American market, tailored to online scenarios.

Drawing on his deep understanding of AI-driven actuarial science combined with API distribution models, and leveraging his achievements in developing and applying intelligent insurance engines, Cheng led his team to independently develop Seel’s actuarial engine. This engine enables the creation of unique, data-driven insurance products for different industries.

His independently developed platforms—namely, the “API Distribution-Based Actuarial Engine Intelligent Platform” and the “AI-Based Cloud Computing Claims Intelligent System”—have provided strong technical support for Seel’s rapid growth.

On January 13, 2022, Seel completed a $17 million Series A funding round led by Lightspeed Venture Partners, marking the largest Series A funding in the U.S. actuarial tech sector. News of this success quickly spread to China, creating a significant stir in the Chinese insurtech industry and attracting widespread media coverage and attention.

How AI Will Rewrite the Insurance Industry

According to Zack Cheng, the integration of AI into the insurance industry is deepening, and insurance companies must clearly define their roles to adapt to the continually evolving business environment.

Executives at insurance companies need to understand the driving forces behind these changes and deeply grasp how AI is reshaping claims, distribution, underwriting, and pricing. Only by doing so can they upgrade their skillsets, cultivate the right talent, and utilize emerging technologies to create the culture and perspectives necessary for future success in the insurance industry.

AI Trends Reshaping the Insurance Sector

Deployment of Sensor-Equipped Devices

In terms of industrial deployment, devices equipped with sensors have already become ubiquitous. Over the next few years, the number of connected consumer devices will soar.

On one hand, existing devices—such as vehicles, fitness trackers, smart home assistants, smartphones, and smartwatches—will continue to proliferate; on the other, new types of wearable devices, such as VR headsets, will emerge.

Cheng suggests that the insurance industry can leverage the massive influx of new data from these devices to better understand users, develop new product categories, enable personalized pricing, and offer real-time services. For example, wearable devices connected to actuarial databases could calculate individual risk indexes based on consumers’ daily activities, predicting the likelihood and severity of potential risks.

Open-Source Data Ecosystems

Regarding open-source data ecosystems, Cheng notes that data is becoming omnipresent, which will encourage the broader adoption of open-source protocols to ensure data can be shared across industries.

He proposes the creation of an ecosystem where data can be shared across multiple user scenarios under unified regulatory and cybersecurity frameworks. For instance, data from wearable devices could be transmitted directly to insurers, while connected home and automobile data could be shared through platforms operated by Amazon, Apple, Google, and various consumer device manufacturers.

Advances in Cognitive Technologies

In terms of advances in cognitive technologies, Cheng explains that deep learning methods such as convolutional neural networks are currently used primarily for the recognition and processing of images, sound, and unstructured text. In the future, these applications will expand further.

Cognitive technologies, built upon the foundations of how the human brain decomposes and reasons during learning, will become the standard method for processing massive, complex data streams. These data streams will give rise to proactive insurance products linked to individual behaviors.

As various technologies continue to commercialize, insurance companies will be able to adopt new models that constantly learn and adapt to their environments, creating new product categories and interaction technologies while monitoring and responding to potential risks and behavioral shifts in real time.

By Luo Sixia

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