Leveraging AI For Insurance
Digitalization has changed the way we do business on nearly every level. The rise of technology and in particular, machine learning, or artificial intelligence, has provided many new and exciting opportunities to every industry. The businesses that will benefit the most from new advances in artificial intelligence, are ones that are open to the experience and potential the technology can bring to their business. Artificial intelligence simply refers to the way machines (computers) display significant intelligence and is enabled to understand its own environment and learn to achieve a goal.
The insurance industry stands to play a big role in the implementation of machine learning. While insurance doesn’t have a reputation for being the most innovative industry around, in the past few years, we’ve seen it come a long way and perhaps even making larger strides at a time than other industries taking several smaller ones. Arguably, the insurance industry must learn to navigate its way through the new and developing world of artificial intelligence if agencies want to remain relevant and convenient to new generations who need insurance.
So, while many insurance agencies have begun to implement AI, and may be off to a good start, there is much more to do. The next step towards paving their future as a business, is to leverage that technology to use it to their advantage and realize the full potential of machine learning. The goal of leveraging artificial intelligence is to make work processes much more accurate and efficient for agents and customers alike. There are many ways artificial intelligence can be leveraged to make agencies more successful through claims management, fraud detection, and customer experience.
1. Claims Management
Anyone working for an insurance agency knows that there are copious amounts of data that is collected. A large collection of data means basically nothing until it is organized in a way that is readable and serves a purpose. Artificial intelligence helps improve the process of collecting and organizing data. A machine can gather data and process it quicker than human hands, which has the ability to expedite the entire process and gain more accurate insight and new information is able to filter in quicker.
2. Fraud Detection
On the back-end of technology advances, fraud is increasingly high. Cybercrime becomes costly to the insurance industry when claims pour in each year. Fraudulent insurance claims have cost insurance agencies large amounts of money in recent years that they otherwise wouldn’t be paying if there were better ways of detecting the fraud before a large pay out. While fraudulent claims have been successful in the past, they have also affected the well being of other innocent customers sending non-fraudulent claims. AI uses advanced algorithms to detect any inconsistency or quirk found in a claim, which improves the way agents are able to sort bad claims from valid ones, saving the agency both money and time as well as look out for their other trustworthy customers.
Check it out: How Technology Helps to Battle Insurance Fraud
3. Customer Experience
Many customers, especially ones of newer generations, are not very interested in waiting around on the phone for hours at a time to speak with their insurance agent. They are looking for the most convenient and fast way possible to file their claims or purchase a type of insurance. AI can prove to be a huge help in the customer area. Chatbots have becomes an increasing staple to many insurance agency websites. Chatbots are programmed to use a type of language pattern to communicate with customers. These AI bots are able to effectively answer customer questions, address complaints, and even review their claims, of course using a fraud detecting algorithm. While these chatbots are useful and improve the customer experience with insurance, they do not necessarily replace human agents. When a customer has more specific questions or concerns that require the attention of an actual agent to have a conversation, the bot with direct the customer to an agent.
Check it out: The Future of Insurance (Infographic)
4. Image and Video Analysis
Part of the convenience customers are looking for today, include mobile device integration. Having a mobile app for your agency to help customers initiate claims while on the go, is an appealing part of new technology. Through mobile apps, customers can submit pictures and video of their accident for example to their insurer instantly. This can be done for property as well. AI algorithms can analyze the images and video uploaded through apps and provide thorough risk inspection. More recently, audio analysis has come in to play with home devices such as Siri, Google, and Alexa. By identifying voice tone and emotions through non-verbal communication in an audio conversation, AI algorithms are able to red flag any part of an analysis that may be fraudulent.
5. Reach Leads
Cold calling is a thing of the past. In today’s world, customers have higher expectations for more personalized approaches. AI scans customer data from their social profiles on the Internet and collect information to find customer trends. By doing so, offers become much more personalized. Customers are now often custom to seeing ads and offers that are relevant to their needs and preferences. The insurance agencies that utilize this technology to their advantage, are experiencing more of an edge over the competition.
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