For a long time, artificial intelligence (AI) has been the buzzword in every industry. Because of its immense benefits, companies and businesses are willing to embrace and invest in this new technology rapidly. According to McKinsey, by effectively introducing AI, the insurance industry will tap into a potential annual value of up to $1.1 trillion.
The insurance industry can benefit from AI in a number of ways, including increased efficiency, improved customer service, effective claims processing, reduced fraud, and so on. The key, however, is to recognize the appropriate collection of use cases and to invest in the appropriate platform.
Let’s have a look at some instances where AI can prove to be beneficial in the insurance industry:
1. Reducing Human Error
Improving data quality and reducing manual errors associated with human input is one of the most realistic applications of AI and cognitive learning technologies. AI applications can be used to detect bad data from application processing, reduce overpricing, automate application processing, and reduce human data entry errors. It can also efficiently save time and money by reviewing vast amounts of data to locate claims conflicts that need the assistance of an attorney.
This ability to evaluate a large number of data points in a limited period of time offers insurers new ways to determine conditions and predict patterns that humans couldn't do on their own.
2. Client Service
With AI-powered chatbots, you can answer your clients' questions 24 hours a day, seven days a week. From simple policy questions to quotations to managing customer concerns and grievances, bots can be incorporated with a variety of networks. They can also be integrated with several channels including blogs, social media, and others, allowing you to communicate and engage with clients through their preferred mode of communication, thereby lowering costs and improving the overall customer experience.
3. Marketing and Cross/Up-Selling
Digital consumers, who shop online, want high-quality, sophisticated goods at reasonable prices. Insurance brokers can learn a lot about their clients' demographics, preferences, shopping habits, and other knowledge with the help of AI. Agents can use this knowledge to their advantage by engaging clients in their respective environments and pitching tailor-made plans that fit their clients’ needs, allowing insurance companies to capitalize on the opportunity.
This goes to show that insurance organizations can achieve a lot more with AI as part of their technology stack.
AI is gaining traction in a variety of industries, insurance being one of them. While it may sound far-fetched now, insurers must be prepared to respond to the changing business and technology landscape. Insurance companies must step up and transform their processes with cutting-edge technology like AI as consumers embrace the digital ecosystem at a faster rate.