Artificial Intelligence (AI) advances the insurance industry
Artificial Intelligence (AI) is a common part of our everyday lives. Advances are being made in AI, making it an essential business tool. AI machines use data to solve problems and to interact with people. Technology with AI can replace analysts, personal assistants, and customer service reps.
The insurance industry has no shortage of data, and AI is a perfect fit. Insurance analysts use historical and current data to evaluate policies and claims to make informed decisions. AI takes this a step further to predict future outcomes. For example one of the leading insurance companies uses AI to improve the turnaround time for issuing a life insurance policy by leveraging an automated application and underwriting process.
AI offers a variety of solutions that can benefit insurance carriers.
With recent developments in machine learning, AI can help in areas such as pricing, claims, and fraud detection.
- Claims Management – Insurance companies have massive amounts of data. On its own, data doesn’t provide much benefit. AI can process data quickly, helping insurers to automate and accelerate the claims process, resolving in better insights.
- Fraud Detection – Statistics show that up to 10% of claims costs are related to fraud. Using predictive analytics, AI can identify more fraud than a human adjuster.
- Underwriting and Loss Prevention – AI can help to automate the underwriting process by combining multiple data sources to avoid unnecessary tests and treatments. Data can also be used to assess risk and promote the prevention. Early detection of diseases can reduce an insurer’s risk.
- Marketing and Customer Experience – Insurance carriers can use AI chatbots to improve the overall customer experience. Chatbots use natural language patterns (NLP) to communicate with consumers. They can answer questions, resolve complaints, and review claims.
The insurance industry has many opportunities to take advantage of Artificial Intelligence (AI). It’s time for insurers to rethink their business models and incorporate AI. Not only will it improve the overall customer experience, but also it can provide valuable savings by reducing labor costs, identifying fraud, and managing risk.