Harness the Power of Artificial Intelligence in Insurance to Gain a Competitive Edge

Artificial Intelligence (AI) in insurance, along with its subsidiaries, in the form of Machine Learning, Deep Learning, etc., has been revolutionizing the industry for quite some time now. It is, therefore, unsurprising that this seemingly niche market enjoys a potential annual valuation of a solid $1.1T. All the transformation and innovation carried out so far are laying the foundation for a bright future of this technology in insurance as it consolidates its role in propelling the sector forward.

For insurance businesses that are still on the fence and yet to embrace AI, this post discusses the applicability and highlights its benefits to help you make an informed decision.

Use Cases of Artificial Intelligence in Insurance

Test out the following applications of AI to discover the untapped potential of data across various verticals in insurance:

Claims Processing

Claims management and settlement is a limb of insurance that usurps a sizable chunk of company resources. From accepting claims to inspecting it to offering support to processing – every touchpoint involves an exhaustive list of actions that one has to perform. On the other hand, laxity in performing these tasks with due diligence will lead to errors that can turn costly.

Fortunately, AI offers a fine balance of human and technology to sustain this symbiotic environment. AI-driven claims processing chatbots can carry out a range of actions, such as accepting, recording, and managing claims from customers, and performing claims verification and cross-check policy details. After the assessment, they can forward claims to authorized personnel and automatically settle claims by notifying banks.

Resultantly, it frees up resources for more intensive jobs.

Chatbots and Virtual Agents

Since we are on the topic of chatbots and virtual agents, these require a special mention by themselves. Chatbots and virtual agents improve the self-servicing model and conduct intelligent conversations, thereby offering customers more control.

Furthermore, it can perform a gamut of pre-sales, mid-sale, and post-sales operations, like generating awareness and upselling or cross-selling products, accepting and processing customer data to profile leads. They also help in identifying sales-ready leads and trigger marketing campaigns while rendering 24/7 personalized customer support.

Such developments are definitely paving the way for robo-insurers – the smarter insurance agent of the future!

Advanced Underwriting

Artificial Intelligence introduces the element of personalization, which can make a world of difference in the policy underwriting process. In this context, personalization is not limited to the use of a first name in an email or sending birthday wishes, AI expands on it further through service personalization. AI can operate in consonance with IoT to access data from wearable devices and telematics to propose behavior-based policies and premiums. Accordingly, insurance businesses can rework underwriting to suit the customer’s preferences.

In this respect, AI can help by performing a rule-based algorithmic classification of customers and eliminating human bias or errors. It has acquired a holistic understanding of “risk” and can assess risk exposure and devise risk mitigation plans.

AI empowers organizations to offer more value through their service. As a result, insurance agencies are in the driver’s seat to make an offer that the clients cannot refuse!

Fraud Detection and Prevention

Fraud detection and prevention is a significant advantage of AI in insurance that has not gone unnoticed. Equipped with the power to recognize patterns and make near-accurate predictions, AI can develop an alert and proactive ecosystem to detect and hedge fraudulent activities.

AI systems monitor employee, customer, and broker behavior to flag suspicious activities. It can perform image processing and analysis to assess the damage and quantify compensation. AI compares multi-dimensional models to detect divergent behavior and can help detect fake and duplicate claims through semantic analysis.

Therefore, AI in insurance would be more vigilant than any legacy or traditional fraud detection and prevention frameworks.

What is the Customer Response to AI in Insurance?

The idea of adopting AI in insurance has received a resounding response from customers. According to Accenture, a staggering 74% of customers admitted that they would be happy to receive computer-generated insurance advice. This trend points towards the favorable conditions to introduce AI in insurance and reap its subsequent benefits.

Your customers are ready for AI-powered insurance, are you?