How Artificial Intelligence Can Transform Insurance Process Efficiently?
Artificial intelligence is one of the trending and prominent technologies that is said to have the power of improving human lives and making this place better for living. AI is said to possess much potential and it is so powerful that it can imitate the intelligence of humans in a better way. It is true that AI can be beneficial to the insurance industry for sure.
Insurance industry has opted for technologies for a long time now and this has helped it become more effective, efficient and faster over the years. As per experts, the introduction of AI in the insurance industry will help to make things smoother and quicker for the customers and the insurers equally. Some of the aspects have been discussed below:
Fraud stays as the major issue in insurance claims. Fraudulent claims can lead the insurance companies to pay more amounts to the claiming customers that they could have otherwise saved.
Such potential frauds can be detected by AI. AI systems have the capabilities to use advanced algorithms to look for defects by using automatic feature engineering and deep learning. This will help the insurance companies to detect claims at a greater speed.
When it comes to detecting anomalies in the claims, machine learning has proved to be more helpful. The use of AI along with machine learning can help insurance companies to build strategies which can help them detect frauds not just early but in real-time. Such a thing will be a great step in processing genuine claims within the insurance industry.
When we discuss the complete insurance claim process experience, filing the claim and processing it remains as the most tedious of all for the majority of policyholders. The level of frustration can be equivalent to the financial losses that the policyholder faces while filing those claims.
The introduction of AI in this sector makes it possible to report the claims faster and quickly capture the damage. It becomes possible to establish communications without actually involving any human part. This makes it possible to process claims in simpler and faster manner.
When the demand for claim process is high, speed remains as the critical factor. This is where AI can exactly help you. The use of AI in handling insurance claims can help the insurance company in offering excellent customer experience.
If the insurance companies can anticipate their liabilities in a better way, they will be able to accurately and quickly understand the expenses related to repairing vehicles. It will be possible to deliver the estimates instantly without the role of a person, just by using AI. Here AI will compare the damage happened to the vehicle with thousands of images of the vehicles which has experienced similar damages and thus come up with a quick repair estimate. The use of video conferencing apps like Adjustify will even help AI to check the damages in real-time and assess the expenses instantly.
Advanced machine learning will be able to offer more information regarding the risk profile of a said customer and thus help with underwriting. Large volumes of data can be scanned and analyzed by AI to get information about a said company, individual or a group. Such kind of information may include the forms, social media profiles or other data of policyholder.
Underwriters that are powered by AI can collect such data and analyze it to be used in better ways. This way, insurance companies can select policyholders in a better way for their approval and thus save themselves from the risks which they might not have thought of otherwise. This way, insurers will be able to achieve better savings and have reduced default rates.
The use of autonomous vehicles will affect auto insurance underwriting by AI. It is believed that the premiums for such vehicles will go high as there is no certainty related to autonomous driving. However, increased safety measures and reduced accident cases will bring down the premium amounts in the long term. The role of AI will be great in the insurance industry as underwriting will check the risk associated with potential clients.
As per a study, it has been said that 85% of the customer interactions will be handled by AI chatbots by 2020. AI will work well for customer service as it can take care of different customers at the same time. They can also resolve a number of customer issues that too just within a few seconds as they can quickly scan through large volumes of data to find the right answers. For the companies which are trying to work towards improving their customer service and sales, AI chatbots can prove to be a valuable asset.
The introduction of AI is said to play a very crucial role in the insurance industry when it comes to claim processing. It is said to play a very impactful role in auto repair estimates, handling claims, detecting frauds and taking care of customer service. AI adoption in this industry is in its primary stage and it can be said that the industry will witness lot more from the technology in the coming years.