Over recent years, artificial intelligence has been transforming numerous industries, such as healthcare, automobile, entertainment & media, banking & finance, agriculture, and marketing. This evolution throbs with three major technologies at its heart; Big Data, Machine Learning, and Artificial Intelligence.
In contrast to popular belief among insurers , the technological disruption that businesses are experiencing on a global level has also penetrated the insurance industry concerning them, mainly, on two aspects:
Firstly, imminent risks arising from the application of artificial intelligence in technologies used for both commercial and personal needs warrant a complete re-analysis, re-assessment, and controlling of insurance risks for all segments.
For instance, insurers are more concerned about the risks associated with the increasing use of artificial intelligence in automobiles and security.
If an accident takes place involving an autonomous vehicle, upon whom will the liability of such a loss lie ‒ the user, the manufacturer, or the person who wrote the algorithms behind the technology? Additionally, how will insurers deal with cyber-attacks which are becoming more consequential than ever before?
Secondly, in today’s competitive environment, businesses leverage artificial intelligence to enhance experiences and set the bar too high that companies that work with legacy systems can’t even reach close.
How can insurers leverage the potential of artificial intelligence to improve the efficiency of its ongoing operations and business functions and achieve enhanced efficiency, faster processing, improved customer services, and better returns on investments?
With a lot in mind, we have crafted this article to elaborate on the potential and impact of AI in the future of insurance and talk about how the insurance industry will operate with artificial intelligence at its center.
Many modern-day insurers are adopting Artificial Intelligence and Machine Learning with human-like learning capabilities aimed primarily at improving operational efficiency and enhancing customer experience.
From the front-end customer interactions to the back-end complex insurance and business functions, artificial intelligence combined with the power of analytics and machine learning now makes it possible for machines to make logical decisions like humans but without human errors or limitations, and the possibilities are endless.
Here is how artificial intelligence will plug into existing transformations within the insurance industry to make it more efficient.
According to a report published by Mantra Labs ‒ The State of AI in Insurance, nearly 74% of the leading companies in the insurance industry believe that the adoption of AI can streamline the claims processing. Though all had a different perspective and believed to see improvement in different areas of claims processing; Claim investigation (20%), Predictive Analytics (28%), Fraud Prevention (39%), and secure payments (22%).
Artificial Intelligence has the potential to offer a more efficient & faster insurance experience across the entire insurance claims cycle, right from the first notification of loss to the settlement.
In a nutshell, there are endless possibilities when it comes to transforming the insurance industry using AI, however, the insurers are greatly concerned about how to exploit the full potential of AI in their current business processes and operations and the consequences of the transformations it brings about in the industry.
The major benefits that insurers will get through the adoption of AI are listed below :
1. Customer-centric Products & Pricing: Artificial intelligence accompanied by machine learning has started a revolution of sorts in insurance. It helps insurers to follow up with customers, understand patterns & their needs better and provide a customized policy at a reduced cost.
2. Automated Claims: With artificial intelligence, many manual and time-consuming tasks in various verticals of the insurance industry including claims management and payments can be automated. Also, it can facilitate real-time detection of anomalies and predict patterns for efficient claims processing.
3. Improved Security: With machine learning and artificial intelligence, insurance companies can analyze previous data, history, and recognize a set of patterns to detect fraud and prevent them at an early stage.
4. Streamlined Operations: While AI is improving internal processes, such as underwriting and billing, users can expect better services and satisfaction with faster services.
5. Natural Language Processing: Leveraging natural language models can minimize customer response time by providing relevant information from various sources.
While artificial intelligence and other advanced technologies are transforming the insurance industry to ensure efficient claims processing and better customer services , we at SignOn.ai help insurers transition into the digital age of insurance. We render world-class services & solutions aligned to insurance enterprises. Talk to our experts to know more about our services & the benefits of partnering with us.