Mitsui Sumitomo Insurance has plans to utilise artificial intelligence (AI) to analyse companies’ financial statements in an attempt to reduce the time it takes to determine the creditworthiness of firms.
The company said that the AI evaluation tests are an industry first. Mitsui also has hopes that the analysis could prove useful when underwriting performance bond insurance for construction companies.
Mainichi Japan reported that Mitsui typically receives about 60,000 applications for performance bond insurance each year. Ten per cent (10%) of those applications take the company “significant time to assess” their creditworthiness, since the cases usually involve high operations costs and companies with multiple contracts.
For the AI evaluation tests, the insurer will utilise software developed by Kokopelli. Mitsui hopes the software will shorten the creditworthiness assessment time, which usually takes the firm as long as one week to accomplish traditionally.
If successful, Mitsui hopes to put the system into use next spring after ensuring the platform’s assessment accuracy via testing.
“We will also put the system’s strengths to use when we need urgent construction, such as when disasters occur,” a system operator told Mainichi Japan.