AI Video Analysis Sets New Standards for Insurance Risk Management

The Korea Insurance Research Institute has organized a forum to discuss a new risk management paradigm leveraging artificial intelligence (AI)-based video analysis technology. Amidst the rapid transition of insurance roles from post-claim compensation to accident prevention and risk management, the overall direction of change across industry, technology, and systems was intensely examined. The Industry-Academia Insurance Research Center of the Korea Insurance Research Institute held the 68th Industry-Academia Seminar on the 24th at ONE CENTINEL in Yeouido, Seoul, under the theme 'Risk Management via AI Video Agents.'

In his keynote presentation, LG Electronics Senior Managing Director Cho Bong-soo emphasized that risk management has become a key priority for CEOs following the enforcement of the Serious Accidents Punishment Act, and that the role of insurance must shift from post-accident loss compensation to 'risk engineering.' He revealed that LG Electronics developed 'EVA,' a vision-language model (VLM) based video analysis application, and applied it to manufacturing sites. The system, utilizing over 5,000 cameras for real-time detection of fires and hazardous operations, is expected to lead to a 5-10% reduction in insurance premiums.

During the panel discussion, Samsung Fire & Marine Insurance's Dr. Hong Sung-woo highlighted the technical limitations of AI-based risk assessment systems, such as accuracy, latency, and 'hallucinations' (AI generating incorrect information). Kwak Hun, Team Leader at the General Insurance Association of Korea, stressed the need for a comprehensive strategy integrating technology, users, and systems. Han Jin-hyun, Research Fellow at the Korea Insurance Research Institute, underscored the importance of personal information protection and regulatory issues, continuing the discussion towards building a future ecosystem.