How AI and Machine Learning are Transforming the Insurance Industry
Data has always been at the heart of the insurance industry. What has changed in our current reality to create massive disruption is the amount of data generated daily and the speed at which machines can process the info and uncover insights. We can no longer characterize the insurance industry as a sloth when it comes to innovation and technology. Artificial intelligence (AI) and machine learning are transforming the insurance industry in a number of ways.
Insurance advice and customer service
From the first interaction when determining what coverage is best to ongoing customer service, machines will continue to play an increasing role in customer service in the insurance industry. According to one survey, most customers don’t have an issue with interacting with a bot; 74% of consumers would be happy to get computer-generated insurance advice.
Consumers have come to expect personalized solutions, and AI makes that possible by reviewing a customer profile and providing recommendations for only insurance products that are relevant for that customer and that would be the best for them based on set criteria. Chatbots that work with messaging apps are started to be used in the industry to resolve claims and answer simple questions.
Transaction and claims processing
As a highly regulated industry, the insurance industry processes thousands of claims and responds to thousands of customer queries. AI is being used to improve this process and move claims through the system from initial report to communicating with the customer. In some cases, these claims do not require any human interaction at all. Those companies that have already begun to automate portions of their claims process are realizing the time savings and increased quality of service.
If the insurance industry could effectively mitigate fraud it would have a powerful impact on each company’s profit and loss statement. In the United States, fraudulent claims cost $40 billion annually while in the UK 350 cases of insurance fraud are uncovered every day. AI algorithms can identify likely fraudulent claims and highlight them for further investigation and action by humans if necessary. This allows an insurance company to take action much more swiftly than relying on humans alone.
Read the source article at Forbes.com.
Source: AI Trends
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