Digital is the new language every business across the world is speaking and brings a new flavor of personalization and automation to its business model. Amid the chaos of COVID-19, when every possible industry and business sector in the world, has turned towards the digital landscape, the insurance sector is no exception to it.
With this post, I am going to bring your attention to the invasion of AI technology into the insurance sector.
So let’s find out together with this post today, and witness the tech-driven future.
AI in Insurance sector
To be honest, the concept of AI in the insurance sector seems a little absurd to many out there, as this very technology has a different methodology that serves a specific set of industries. But little we know, that this very technology has offered a great concept to multiple sectors, and here insurance is one of them.
It does not just automate the tasks for this sector, but also the features like visual and speech processing, decision-making, and language translation, are a bed of roses, without thorns (pun intended).
Whether it is underwriting, claims or broking, AI has eased down the road for the insurance industry, while helping executives not comb through the report manually and make errors.
Here in this post, we have brought you a quick rundown of the advancement that AI has brought to the insurance sector.
Automation is the new norm
Say goodbye to piles of papers, and manual data entry on computers. As the advent of technology has allowed the insurance sector to improve efficiencies in the claiming process and management. So now insurance executives no longer need to spend hours filling the routine questions, and other required paperwork. They simply need to turn to AI and let it handle the data.
The predictive recommendation is one of the most beautiful aspects of AI technology, but it helps mostly in online shopping or other entertainment modes, then how come it can be fruitful in the insurance sector.
Hmmm, a very valid question, so within the insurance sector, this same concept can be used and applied to build predictive models for expense management, high-value losses, reserving, settlement, litigation, and fraudulent claims.
Here, the integration of the algorithms helps in comparing the answers with the information provided by the customers, and then AI takes the decision and recommends to tackle every scenario.
Risk assessment and underwriting
The insurance companies run on two factors; risk assessment and the underwriting process. Since our world is growing digital, hence it is very essential for insurance companies to embrace the new age of digitalization. Here insurance companies can take the help of AI and comprehend their customers while identifying their risks. It goes without saying, but this is highly significant for the insurance sector. Also, customers after getting accurately assessed get to pay lower premiums.
Reduce the fraud attempts
Since the invasion of COVID-19, has given a boost to hackers and fraudsters on the road, alluring the customers into their trap, and con them further to pay for the insurance. And till the time they get to confirm with the real companies, the fraud has already taken place, this relay creates an annoying situation. Here, companies offer the AI system, letting customers book, update, or pay for their insurance through the means of technology, curbing the fraudsters’ attempts to a larger extent.
Chatbots are virtual assistants that don’t sleep at any time, regardless of time or zone barrier. This enables insurance companies to stay available for their customers throughout the day and night without any pause taken in between. This lets the customers interact with the insurance companies, as and when the need arises, and don’t have to wait till they function in the official hours.
Data is the most valuable part of the insurance industry, and here the integration of AI would drive a much-transformed version of a new product, where it can grab the full-fledged information about the vehicle, and drive any other past behavior, that will help the owner and the company to claim for the insurance.
It will help in tracking, monitoring, and managing all types of significant data that can even alert the driver in advance, and will save major destruction to happen.
Indeed, technology has never been on the cards of the insurance industry, as they always have been into a bubble of self-efficient services, but with the advent of technologies, there is likely to be a transformed user-experience waiting at the door.
With time AI- Artificial Intelligence shall expand its vision to the entire landscape of the insurance business. And we shall experience more change that is yet to be experienced. It is very likely that the insurance market that never got the whiff of technology over the many years, is likely to get dominated by AI technology at large.