Driving Opportunities for the Insurance Sector with AI-Powered Tech
Gartner states that by 2020, 85% of customer interaction won’t require human input. With the rise of artificial intelligence (AI), the digital experience will replace the human touch in service business areas, saving the FTE for companies. Technology becomes the driving force behind the insurance landscape as well, changing the way companies process customer data and interact with clients.
The insurance business is taking advantage of AI’s exponential growth by automating processes that were traditionally tough to optimize. With artificial intelligence getting integrated into almost every part of the insurance ecosystem, it empowers product innovation and significant improvements across the entire value chain.
Each of AI’s assets, including machine learning (ML), text, image, video and audio analytics, natural language processing (NLP) and robotics automation, affect the insurance sector. AI algorithms assist insurers in fraud detection, claim management, risk evaluation, customer engagement, cross-selling opportunities identification and digital integration.
Let’s see how AI drives the shift in the insurance landscape and what companies can do with the help of tech.
Streamline Customer Experience
Insurance companies have rather low-touch relationships with customers. By simplifying and automating customer-facing interactions, insurers attract customers that expect to get fast services across multiple channels.
Inviting clients to a physical service deck, offering to fill in lots of forms, initiating a talk with agents or brokers… Are you serious?
In the wake of digital transformation, customers expect multi-channel and always-on support 24/7. AI comes in handy, delegating service requests and questions to virtual agents or conversational assistants. As insured losses can happen at any time, insurance companies have to make sure they won’t let their clients down. Even in the case of significant loss events like natural disasters, AI-powered text or voice chatbots will be able to handle a massive amount of claims simultaneously. By automating tedious business practices, AI delivers operational efficiency and improves the customer experience at the same time.
Manage Claims Faster
Speed of claim processing is one of the most critical factors that define the efficiency of an insurance company. As claim management typically requires lots of unstructured data, manual settlement can last for ages. With instant access to the entire scope of information, advanced algorithms of claims routing and process automation, the introduction of AI can boost the efficiency of handling claims.
AI-based technologies can replace the fastest human specialists, reducing the time spent on a single task from a couple of days to a fraction of a second. As natural language processing or text, audio and video analytics help drive accurate insights from the collected data times faster, headcount responsible for claim management can be reduced by 90% until 2030. This way, companies will kill two birds with one stone: offering faster service and saving lots of costs on hiring and retaining expensive in-house talents.
Spend Less Time on Onboarding
When it comes to client onboarding, identity verification stands at the forefront of the organization’s security. Artificial intelligence will help your business stay reliable and secure as well as decrease onboarding time with the automated KYC (know your customer) compliance. KYC is the process of documenting exact personal details of customers and creating their virtual identity as a database. While financial fraud and money laundering are blooming, KYC verification helps insurance businesses eliminate applications and claim hacks.
KYC check includes the assessment of high-level details such as name, phone number, address or email, based on the verification of client’s bills or rent agreements, PAN card, Aadhar card, passport, driving license, birth certificate and even salary statements. Such identification helps to improve decision-making and enforce risk management.
With the assistance of AI-powered tech, insurers can proceed with KYC in real time. Artificial intelligence helps to automate and optimize critical operational areas of KYC and speed up initial client onboarding. Instead of manual verification of customer documentation, companies can use a smartly-devised AI to process the vast amount of information collected and provide insurers with actionable insights. For example, users can upload their selfie to an application offered by an insurance company, and AI will define their sex, age, possible diseases and medical underwriting only through image scanning and processing.
Tap on Risk Management
Insurance companies, both healthcare and property, are paying increasingly more attention to the opportunities AI creates for better risk management.
Artificial intelligence helps businesses become more efficient in their decision-making and insurance offers. An excellent example of how companies can apply AI technologies is Progressive and their Snapshot application. The company analyzes risk profiles of drivers and offers discounts to those who drive safer. This way, Progressive can spot pattern behavior and manage risky drivers better, saving costs on processing their claims in the long run. The same applies to health insurers: they can manage claims and risks based on the collected and processed customer data. In many cases, early noticed health issues help prevent serious diseases that require more expensive treatment.
With the power to spot suspicious activity, embedded AI and machine learning technologies can analyze tons of claims in bulk and detect anomalies or faux applications. Advanced insurance fraud analytics and accurate predictions allow companies to prevent crimes that might cost them a fortune if not spotted.
- Implementation costs. Since the technology is still evolving, and there is no one-fits-all solution, the cost of implementation may be higher than you’d expect. Insurance business owners have to evaluate their companies on an enterprise level to define the most appropriate strategies of adopting artificial intelligence and count ROI. But with many vendors on the market, the technology gets more accessible every year.
- Implementation means. State-of-art technologies can’t be implemented without skilled professionals. You’ll need a reliable vendor experienced in solving business challenges with AI-based tech to reap its benefits to the fullest.
While there are challenges, companies keep investing in AI as it has enormous potential to transform the insurance landscape. With innovative and personalized at-scale solutions, companies that start exploiting AI will have an advantage and stand out on the market.
If you believe artificial intelligence is going to be the next big thing in the insurance business, contact our experts who will help you choose the best strategy based on your needs and requirements.