Kennedys IQ Unveils AI Tool to Enhance Insurance Decision-Making
Insurers are continually seeking ways to improve the accuracy and consistency of their policy reviews and claims assessments. Kennedys IQ has responded to this need with the introduction of SmartRisk, an artificial intelligence (AI) risk analysis solution. This tool is designed to support and streamline the decision-making processes within the insurance industry.
The new tool integrates directly into the firm’s technology platform. It aims to help insurers navigate the complexities of coverage evaluations and liability determinations. Unlike many current AI models, which rely solely on probabilistic outputs, SmartRisk combines Large Language Models (LLMs) with Evidential Reasoning (ER) and Belief Rule Base (BRB) methodologies. This unique approach is intended to provide a structured and auditable decision-making process, addressing concerns about the transparency of AI-driven assessments.
According to Kennedys IQ, the system does not require extensive upfront data and can be configured for different lines of business. It can also integrate into client systems within weeks. The tool is designed for claims professionals, brokers, and underwriters across global markets. This includes the London market, general and specialty insurance in the UK, Europe, North America, Latin America, and the Asia-Pacific region. SmartRisk automates risk assessments and policy analysis. It also supports structured claims governance, extracting key information from complex documents, including handwritten notes.
SmartRisk also facilitates regulatory compliance by curtailing inconsistencies in assessments.
“There is a growing demand for AI-driven automation in insurance, particularly within specialty and complex risk underwriting,” said Karim Derrick, Kennedys IQ’s chief product officer. Derrick pointed out that many generative AI chatbots lack transparency. This makes them unsuitable for insurance risk assessments. SmartRisk, he explained, is designed to fill this gap. It does so by providing fully auditable insights, ensuring insurers retain control over decision-making.
Developed in collaboration with the University of Manchester and legal professionals from multiple jurisdictions, the SmartRisk system integrates generative AI with explainable machine intelligence. It utilizes a neuro-symbolic approach to support structured reasoning and rule-based decision-making. Early pilot programs have shown improvements, including a reduction in errors. Insurers using the tool have also reported improved consistency in professional judgment and operational efficiencies in claims and underwriting processes.
Richard West, head of client innovation and director at Kennedys IQ, noted that SmartRisk integrates legal and insurance expertise with AI technology. This provides transparency in risk analysis and decision-making.
