Artificial Intelligence & Insurance

Artificial Intelligence & Insurance

Siri, Alexa, Bixby, Cortana and Google Now – although they all come from different mobile platforms, these virtual assistants have one thing in common: AI or Artificial Intelligence. Most of us find them very useful, while others are highly disturbed with their human-like thinking capabilities.

But what if this extremely revolutionized technology interferes with the business sector? Specifically, an industry where we have to put all of our trust: insurance. Are we ready to share our insurance concerns with robots? Or talk to chatbots for specific quotes or customer service? How about filing claims with the help of digital customer support agents? Folks, welcome to the world of technology!

The insurance industry has proven its tough stand regarding revolutionizing change. Following traditional methods and century-old processes, many companies still resist the urge to employ the convenient powers of technology. However, with AI, it seems that the insurance industry is ready to embrace a faster and more efficient way of providing services for its clients.

AI in Underwriting

Traditionally, insurance underwriters make use of the data provided by the client on the application form to come up with an accurate assessment. By reviewing their history, socio-economic background, lifestyle and working environment, they are able to provide a precise analysis of the various risk factors that could affect the premium. Though, a single honest mistake or minor fraudulent piece of customer information could make these assessments inaccurate.

But with the discovery of Natural Language Processing (NLP) algorithms and other AI technologies, underwriters can now handle and assess data more efficiently. Cognitive programs are designed to filter public online presence in the form of social media postings, site reviews, tagged location, internet searches and many more. It helps underwriters to better appraise policyholders on certain causes that matter. For example, posting an online picture while smoking could potentially increase your health insurance premiums.

The Role of Artificial Intelligence in Claims

Filing claims can be a lengthy process when it requires phone calls to ask for requirements, going to the office to submit files, and waiting for the final decision. For many consumers, a great insurance company should be able to process claims and disputes in as little time as possible. Hence, filing for claims is synonymous with the reputation of one’s company – a make or break situation that could retain or lose customers.

AI aims to change the way insurance companies process claims. With AI-capable technologies, everything is automated from the First Notice of Loss to resolving issues. A great example is the AI-powered virtual chatbot for insurance companies that provide pertinent information to consumers such as claims submitted, current status, payment information and more. Various companies in the insurance industry offer the chatbot to provide immediate customer service communications with policyholders. Within the app, users can submit pictures and other data to file claims.

AI for Customer Service

Since there are many kinds of machine-learning algorithms along with intelligent virtual programs, it is no surprise that even in customer interaction AI can still be used to improve customer service. With the increasing number of modern applications and ever-growing digital trends, it is no doubt that AI will soon replace humans all across the world in customer engagement.

For most insurance companies, using AI instead of employing real people means lower labor costs, reduced fraudulent cases, improved customer satisfaction and greater savings, which can be passed on to consumers by reducing premiums. According to Mobile Monkey, by the year 2020 85% of customer interaction will not need human communication; and by 2018 most digital assistants will be able to recognize customers via voice and face – which is happening right now.

Coverage Advice Through Artificial Intelligence

The rampant use of AI in the world of insurance is still far from complete, but the future on how the trade will work is undeniably exciting. Imagine small business owners and midsize companies using high-tech programs to inquire for quotes. Possibly, a start-up company talking to a virtual robot assistance or chatbot for policy advice and filing assistance.

Although security issues are still a major concern, consumers are ready to revolutionize and reshape the way insurance works. Fast, easy, smart, consistent, efficient, practical and convenient for companies, consumers and small to midsize business owners; AI is a win-win option for everyone.