AI to replace humans in insurance firm

Artificial intelligence is set to replace more than 30 human workers at Fukoka Mutual Life Insurance. The system will be based on IBM’s Watson Explorer technology, and will help calculate payouts to policyholders from January 29, the company said in a statement.

The AI will scan hospital records and medical certificates, and then extract data on injuries, patient medical histories and administered procedures to determine insurance payouts.

Fukoku Life said it hoped the AI would increase productivity by 30 percent, although final payments will still be processed by human staff.

The 34 employees replaced by the AI will lose their jobs by the end of March, most of them on five-year contracts that will not be renewed or replaced.

The company will spend USD2.36 million to install the system, and spend about USD177,000 in yearly maintenance fees.

But it will save about USD1.65 million a year on employee salaries after the system is implemented, which means the investment will pay off in less than two years.

Other Japanese companies are already using similar technology — Dai-ichi Life Insurance uses a Watson system to process payment assessments, although with no human redundancies.