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.
Artificial Intelligence and Machine Learning Transforming the Insurance Industry
Although the concept and definition of artificial intelligence is still morphing as the technology matures, generally it is the idea of building machines that can think like humans. The term machine learning is used to describe the idea of teaching computers to learn in the same way humans do. It represents the leading edge of AI. Since insurance has always been data heavy, it is perfectly poised to be significantly impacted by AI. Here are just a few ways the insurance industry is being transformed.
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.