The use of Machine Learning and data analytics technology is giving insurers benefits that were hitherto unavailable. Here is an overview of how AI is transforming the insurance industry.
AI Aids in the Customer Buying Journey
Bubble uses AI to shorten the process of buying home insurance online and generates curated questions to provide customized guidance for choosing the right coverage. It helps determine the needs of the customer and connects them to the most appropriate insurance products.
It Helps Streamline Claim Processing
The insurance industry is largely paper-based, with little end-to-end digitization. This makes operating costs quite high, and manual claims processing is prone to many errors and inefficiencies.
However, data and AI have driven automation for most standardized and repetitive workflows. It lowers the cost of claim processing, time spent, and workforce required for the task.
It Accelerates Claims Adjudications
Your customers want a fast cycle time. AI has the potential to take up some labor-intensive tasks such as inspections. Using AI with data collection systems can make it easy to gather evidence and make claims adjudications quickly.
With AI systems, insurers can process geospatial data collected by satellites and HD imagery collected by drones and analyze the datasets using ML or DL algorithms. The result is a faster and more accurate claim adjudication.
Better Fraud Prevention and Detection
It is estimated that insurers lose over $40 billion to fraudsters. Fraud has brought down several insurance firms and dampened stakeholder confidence in the industry. However, using AI-powered detection systems can address shortcomings and loopholes exploited by fraudsters. Besides, it augments human judgment by providing tools and intelligence that are vital for detecting fraud.
In conclusion, AI and data analytics have had a transformative impact on the insurance industry. From risk assessment to claims processing, customer experience to product innovation, AI has revolutionized how insurers handle data, make decisions, and interact with customers. By harnessing the power of AI, insurance companies can drive efficiency, improve accuracy, and deliver personalized services, ultimately shaping a more agile and customer-centric insurance landscape.