AI revolution in insurance: bridging research and reality.

This paper comprehensively reviews artificial intelligence (AI) applications in the insurance industry. We focus on the automotive, health, and property insurance domains. To conduct this study, we followed the PRISMA guidelines for systematic reviews. This rigorous methodology allowed us to examine recent academic research and industry practices thoroughly. This study also identifies several key challenges that must be addressed to mitigate operational and underwriting risks, including data quality issues that could lead to biased risk assessments, regulatory compliance requirements for risk governance, ethical considerations in automated decision-making, and the need for explainable AI systems to ensure transparent risk evaluation and pricing models. This review highlights important research gaps by comparing academic studies with real-world industry implementations. It also explores emerging areas where AI can improve efficiency and drive innovation in the insurance sector. The insights gained from this work provide valuable guidance for researchers, policymakers, and insurance industry practitioners.