Abstract: The evolving landscape of commercial insurance is becoming increasingly intertwined with the advancements in artificial intelligence. This transformation is particularly pertinent for small businesses, which often face unique challenges in risk assessment and management. AI technologies are poised to overhaul traditional risk profiling methods in commercial insurance, offering a more nuanced, data-driven approach. By leveraging machine learning algorithms, natural language processing, and predictive analytics, insurers can obtain a more comprehensive understanding of risk factors pertinent to small businesses. This integration enables insurers to offer more tailored and accurate risk assessments, which are both cost-effective and timely. In this work, we examine the intersection of AI and commercial insurance, focusing on how these technologies can be harnessed to enhance risk profiling for small enterprises. Traditional risk assessment models often rely on historical data and generalized assumptions, which may not adequately capture the complexities of small business operations. AI provides an opportunity to refine these models by integrating vast amounts of structured and unstructured data from multiple sources, such as social media, financial records, and even IoT devices. This data-driven approach facilitates a more dynamic and responsive risk assessment, evolving continuously as new data becomes available. Moreover, the integration of AI in commercial insurance extends beyond risk evaluation—it influences policy customization, underwriting processes, and claims management. These technologies enable insurers to predict potential risks with greater accuracy and adjust policies accordingly, improving both coverage and pricing strategies. Despite the promising potential, the deployment of AI in this sector also raises important questions about data privacy and algorithmic transparency. Thus, it is imperative to address these challenges to fully realize the benefits of AI in risk profiling. Through this analysis, we aim to provide insights into the transformative potential of AI technologies for small business insurance, highlighting both opportunities and obstacles in redefining how risks are assessed and managed.
Keywords: Commercial Insurance,Artificial Intelligence (AI),Risk Profiling,Small Business Insurance,InsurTech,Machine Learning Models,Predictive Analytics,AI Risk Assessment,Underwriting Automation,Data-Driven Insurance,Digital Transformation,Insurance Innovation,AI-Powered Underwriting,Business Risk Management,Smart Insurance Solutions.
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DOI:
10.17148/IJARCCE.2022.111255
