In what ways AI And Machine Learning Are used to transform the Insurance Industry

It has always been at the center of the insurance industry. The only thing that has altered in modern world that has caused huge disruption is the volume of data that is generated every day and the speed with which computers analyze the data and reveal information. We are no longer able to define an insurance company as being a slouch in the realm of innovation and technological advancement. AI (AI) or machine learning is revolutionizing the insurance industry in many ways.

Artificial Intelligence and Machine Learning Revolutionizing Insurance Industry Insurance Industry

While the definition and concept of artificial intelligence is changing as technology advances in general, it’s the idea of making machines that think as humans. It is a term used to describe “machine-learning” is used to describe the concept of teaching computers to learn the same manner as humans do. It is the cutting-edge of AI. Since the insurance industry has always been a data-intensive industry it is perfectly positioned to be significantly affected by AI. Here are some ways in which it is currently being changed.

Customer service

From the initial interaction deciding which coverage is the best to ongoing customer support machines will take on a greater role in customer service within the insurance business. According to one study that surveyed customers, the majority don’t feel uncomfortable interacting with a robot; 74% of people would be content with information about insurance from computers.

Consumers are now expecting customized solutions. AI allows for that by looking over a person’s profile and making recommendations on only those insurance options suitable for the customer and would be most beneficial for them based on a set of guidelines. Chatbots that are integrated into messaging apps are beginning to use in the insurance industry to settle disputes and to answer questions.

Insurance industry

Processing of claims and transactions

Being a highly-regulated business the insurance industry handles thousands of claims and is able to respond to a multitude of customer inquiries. AI is employed to improve the process and to move claims from initial report to communication to the client. In some instances the claims don’t necessitate any involvement from humans whatsoever. Companies that have implemented automation of a portion of their claims processing are seeing efficiency and time savings as well as the improved efficiency of their service.

Fight fraud

When the industry of insurance was able to effectively reduce fraud, it could be a significant impact on every company’s profit and loss statements. For instance, in the United States, fraudulent claims cost 40 billion dollars annually and there in UK 350 instances of insurance fraud are reported each day. AI algorithms are able to detect fraudulent claims and flag those that are likely to be fraudulent to further investigate and take action by humans , if required. This allows insurance companies to respond faster than relying solely on human beings on their own.

Consumers are now expecting individual solutions. AI allows for that by looking over a person’s profile and recommending only those insurance options which are appropriate for the client and are most beneficial for them, based on predetermined guidelines. Chatbots that are integrated into messaging apps are beginning to be utilized in the insurance industry to settle issues and help with simple questions.

Processing of claims and transactions

Being a highly-regulated business The insurance industry processes thousands of claims and is able to respond to thousands of questions from customers. AI is used to improve the efficiency of this process and help move claims from the initial report to communicating to the client. In certain cases these claims don’t need any interaction from a human in any way. The companies that have started to automatize a portion of their claims processing are seeing efficiency and time savings as well as the improved efficiency of their service.

InsureTech is Transforming Insurance Industry Insurance Industry

Tech innovators and startups are realizing the potential uses for AI and machine learning within the insurance industry , and the result is a rise within InsureTech which is one of the fastest-growing segments of the FinTech sector. There are a myriad of innovative products and services created through tech-based companies which will result in operationally changing the daily procedures of insurance companies. Here are some worth mentioning:

Captricity: Since the start-up began offering its services in 2011 and demonstrated that its algorithms could translate handwritten and typed forms to an electronic form with 99.9 percent accuracy It has driven profits by reducing the cycle time and improving the quality of data provided to its clients.

Zendrive: Would you download an application on your smartphone that tracks your driving habits? You might if you got a significant discount on your car insurance premium. The algorithms transform the data from sensors into safety alerts, thus reduce the risk of accidents.

Cape Analytics: Through the creation of extensive property attributes using geospatial and computer-generated imagery, Cape Analytics helps property insurers speed up their quote process and increase quote accuracy, without the requirement of having agents at the property to perform an assessment on-site.

The landscape of the insurance industry is expected to continue to change with the advancements in machine learning and artificial intelligence become better and produce new solutions to simplify operations, develop better underwriting models, and offer better customer service.

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