Artificial Intelligence and the impact on the insurance industry
As the insurance world gears up to undergo transformation, new-age technologies like AI, Big Data and IoT are finding their way into the insurance industry as well. These technologies have the power to change the way enterprises operate and elevate customer experiences to a new level. Insurers mentioned Artificial Intelligence as the top “game-changing” technology in the 2020 Gartner CIO Survey.
Artificial Intelligence or AI is one of the most commonly talked about concepts in today’s digital age. So what exactly is AI? The ability of computers to think and learn like humans is essentially what the concept of Artificial Intelligence is all about. When coupled with Machine Learning (ML), AI enables productive analyzation and interpretation of data collated from various tasks performed within an enterprise. Like most other industries, insurance too is incorporating AI to streamline processes, enhance efficiency and overcome business challenges.
Artificial Intelligence in Insurance
From claims handling automation to enhanced customer service, insurers are leveraging AI for more accurate, secure and efficient processes. Widespread adoption of this technology is benefiting agents, employees as well as customers, making it an overall success for insurance enterprises. The possibilities are endless when it comes to AI adoption in insurance. Here are some of the ways in which AI is changing ways in insurance.
Customized products and pricing: Artificial Intelligence[AI] has had a prominent impact on the pricing front for insurers. Personalized policies and pricing that goes in accordance are what customers are demanding today. AI is enabling insurers to profile customers and understand their needs better, enabling them to provide a customized policy that is competitively priced.
Automated claims: Claims management and payouts are normally manual, time consuming tasks. With AI, many of these claims related processes can be automated, reducing hiring costs and faster processing. This additionally enables insurers to provide circumstance-based customizations for customers.
Enhanced security: Insurance companies lose in billions every year to fraud. AI is aiding in fraud detection and risk management by analyzing claims data. It helps in identifying abnormalities and false information provided by customers for higher payouts or lower premiums.
Natural Language Processing: Another solution that is seeing increased adoption is NLP. Documents, emails and chats are few among the many forms of textual data that insurance companies have to go through on a daily basis. Leveraging on language models reduces the effort involved and time required to respond to customers as NLP helps in collating relevant information.
Operational enhancements: AI is helping in streamlining internal processes as well like underwriting and billing. This effectively means higher volumes and speed which ensures superior customer engagements and heightened satisfaction.
The aim of transformation efforts is better customer experiences (CX). Higher ratings on CX means better customer retention, higher profit margins and beating competition. Here are some of the efforts that are trending in this space and will see increased adoption in the coming years:
Chatbots — Seeing increasingly widespread adoption, chatbots are paving the way for a new customer experience. Whether its awareness initiatives, answering queries or helping out through a claims process, they can do it all. BOTS are enabling insurers to tackle more questions and forms much faster, making the process easier for all parties involved.
Extended reality (XR) — Virtual and augmented reality applications are taking the world by storm. For higher CX, a possible channel for insurers is XR. Adding the element of ‘look-and-feel’ is sure to give enterprises an edge.
Omni-channel approach — Upgrading IT infrastructure and enabling integration of new-age technologies will enable engagement across multiple digital touchpoints. Intelligent distribution will change mobile and web application experiences.
Transparency — With adoption of technologies like AI, processes will not only be more efficient but transparent as well. All stakeholders will have access to data at their fingertips enabling stronger partner and customer networks built on transparency and trust.
The entire process of Artificial Intelligence adoption will require time as it needs a change in strategy and outlook. We at Neutrinos as helping insurers seamlessly transition to the digital age of insurance. We provide solutions and services uniquely crafted for insurance enterprises. Our Remote insurance and Distribution Suite models have been adopted by some of the leading players like Aviva and Telesure. Talk to our experts to know more about how you can benefit from our MXDP.