Insurance industry can have better cost performance, reduce protectoin gaps, increase customer experience and create transparency with the combination of available data and AI/ML. While some might argue around the latter part, transparency is likely to receive assistance from legislation on these services.
As data becomes ubiquitous, Artificial Intelligence and its related technologies will create a seismic impact on many aspects of the insurance industry, from distribution and underwriting to pricing and claims. This fits well with our mission to facilitate seamless information flow in the insurance industry, fostering efficient and data-driven processes with a human first approach.
We are already seeing a growing confluence of data coming from varied contributors in the insurance ecosystem. All of which has resulted in better insurance products positioned at the right price points in the market. Although the adoption of AI is rudimentary today, it is quickly becoming the frontier of change in the insurance industry. Early adopters of the technology have seen their processes gaining efficiency. Like the underwriters receiving support on managing portfolios instead of reviewing every single submission. Machine learning algorithms are handeling more standard and predictable claims. All in all, human intervention is being restricted to cases that need higher-order decision-making and human emotional intelligence. It is important for insurers to invest in future ready backend systems that are able to work with these services. However, it is not just backend processes that AI has finetuned. AI is also changing the perception of customer experience.
With newer open-source natural language processingbased tech solutions like ChatGPT, insurers can completely redefine their customer engagement approach.
Here are some other ways we think AI might impact the insurance industry in the years to come –
1. Insurance Industry Assessing Risks
Natural language understanding (NLU) could enable insurers to filter more abstract sources of information – such as online reviews, social media postings, and grievance reports – pulling necessary information together to better assess the potential risks involved, and their impact. In an industry where price has more significance over competing products, a more accurate risk assessment and an individualised pricing model could make a big difference.
2. Data collection
The data chain in the insurance industry is long and complex. Every piece of information passes through multiple stakeholders between the carrier and the policyholder, leading to a vast scope for human error, not to mention a huge amount of manual work that slows the process. However, AI enriched solutions like Seamless.Insure which embrace an ecosystem approach have already started to support this challenge, whilst reducing time and human error by completely digitising the collection of data. With Seamless.insure, our customers can get automated data extraction, and prefilled forms reduce the amount of data entry and re-entry to increase accuracy across the board.
3. Fraud Detection in the Insurance Industry
AI can identify fraud in your current portfolio through detecting patterns of behaviour that might escape human cognition. However, predictive models of AI can also alert carriers to probable fraud scenarios before a policy is issued.
AI holds strong potential for improving operational efficiency, controlling costs and enabling insurance companies to pivot to a digital-first customer experience.
We help insurance businesses get a jump start on their digital transformation journeys.
Our Group CEO – Daniel Thafvelin wrote this article published in MIM59 edition.