How to leverage AI and Machine learning in the Insurance Sector

  • TECHNOLOGY
  • 2 MIN READ
Phani Kumar S VP, Digital Marketing
AI in Insurance

The constant technological innovation is revolutionizing the insurance industry in ways no one would have thought possible before. The invention of Artificial Intelligence, or AI, is a beacon of light for the industry since this technology has the power to eliminate a lot of obstacles faced by the sector.

Chatbots and The Insurance Industry

Almost all industries that have an online footprint tend to have chatbots on their website. Chatbots are digital assistants that can conduct natural conversations with site visitors. By talking to the visitors are resolving their queries in the initial exchange, this AI technology aids in reducing the need to hire a human workforce in the beginning stages of customer service. Since messaging is preferred by the masses, compared to conversing over the phone, the use of chatbots has made the communication process easier for both the company and the customer.

The insurance industry and Artificial Intelligence/Machine Learning

You might think that the insurance industry is yet to incorporate machine learning in its business model, but you couldn’t be more mistaken. The truth is many companies within the insurance industry make use of machine learning in their process of automatic policy writing.

Some might argue that this means that the sector hasn’t yet realized the full potential of AI. And that’s true. There is a lot that remains to be explored. AT can further be used in the sector to streamline internal and external processes. This includes aiding employees in finding the relevant information as well as enhancing average customer experience.

Here are some ways ML and AI can be used in Insurance.

1. Lead Management

AI can be very helpful for the marketers and salesforce of the insurance sector. The technology can be used to access and extract insights that might have been missed by the human eye. Such valuable insights can then be used to gain a competitive advantage over other companies. Furthermore, AI has the power to deliver personalized recommendations to each customer based on their previous purchases and spending pattern. This increases the chances of selling the products.

2. Fraud analytics

As per reports, the cost of dealing with claims is going to go up by 10 percent in the future. This means that over a billion dollars will be spent on dealing with fraud related issues. AI can transform the way insurance organizations deal with claims. It can be used to verify facts. For instance, let’s say a driver says that the car crashed due to poor weather. AI can access the weather report to see if there is any truth to the account. This can help in dealing with fraud.

3. Claims Management

Apart from detecting false claims, AI can be used to organize and process claims at a faster rate than ever before. Speed-based claims can be converted into written claims via the help of AI. This simplifies the documentation process and reduces the hassle involved.

Verdict

AI and ML are already making an impact on the insurance sector. Time will tell how much technology will be able to be incorporated in the industry in the future.

Published: Feb 18,2019 01:15:00 PM IST
CONTACT