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Transforming the Insurance Industry with Artificial Intelligence

Transforming the Insurance Industry with Artificial Intelligence

Artificial intelligence (AI) is the ability of a digital computer or computer-controlled robot to perform tasks that are commonly associated with human beings. According to more than 76% of insurance executives, the stakes for innovation have never been higher. AI adoption is accelerating among insurers and the insurance sector, with 87 percent of carriers investing more than $5 million per year in AI-related technologies. 

By leveraging Artificial Intelligence in the insurance industry, insurance companies can gain plenty of advantages, including increased productivity, improved customer service, more efficient claims management, reduced fraud, and more. It can help the insurers to analyze the customer data and forecast the consumer behavior to understand their preferences and optimize price and service offerings. The insurance sector can become more personalized now as the insurers using AI can know the customer and their needs better. 

The insurance sector can use AI in different fields such as; 

Communications & Operations

The primary aspect of the customer experience for insurance companies is how the company communicates with all its customers. Customers typically switch to a competitor given the lack of timely and necessary information on the value of products. After the sale of an insurance policy, communication is rarely prioritized, with companies contacting customers just at the time of policy renewal. With the help of AI;

  • Insurers can expedite claims, reducing processing time and costs while improving customer satisfaction by providing them with more tailored contracts based on their specific needs.
  • Chatbots can be created to answer a number of consumer queries via chats, emails, and even phone calls which can save insurers a lot of time and money. 

Risk Reduction 

Every year, insurance companies lose more than $40 billion to fraudsters. Fraudulent claims are a real scourge. The figures are clearly astounding, but they are understandable given that many still depend heavily on outdated rule-based systems incapable of detecting advanced fraud schemes. With the help of AI Insurers and Insurance companies can;

  • Deduce fraud patterns and reduce fraudulent claims.
  • Also improve the risks and actuarial models of the insurance companies.

Marketing & Sales 

The majority of consumers are more cost-conscious than ever before, and every customer has its own requirements when it comes to insurance policies posing a unique challenge for insurance marketing professionals. Creating data manually for more personalized policies and for more attractive prices is impossible. Insurance companies can use AI;

  • To price their insurance policies according to their competitors and also recommend useful products to their customers. 
  • To price their products based on individual needs and lifestyles, ensuring that customers only pay for the coverage they require.

Future of AI in the Insurance Industry

AI has the potential to revolutionize the insurance experience for both the customers as well as the insurers. Insurance will become more personalized as insurers use AI technology to better understand what their customers require. It will  improve the customer experiences as it is easier for the customers to interact with insurance companies and they also enjoy a more seamless user experience and lower rates. By accelerating workflow processes, insurers will be able to save a lot of money. They will also find new revenue streams as AI-driven analysis uncovers new business growth and cross-selling opportunities.

To know more how AI is helping the insurance sector visit our conference in Boston on September 8-9, 2022;

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