Artificial Intelligence: Transforming The Insurance Industry In 3 Ways
Artificial Intelligence (AI) is taking the world by storm.
Nowadays, AI-powered innovations are providing much-needed help to various sectors and industries around the world. Included in this list is the insurance industry, which could greatly benefit from the additional efficiency and security provided by AI. Leveraging this technology is a must to keep up with an ever-changing world that is slowly preparing for a complete digital transformation.
Here are three ways that AI can transform the insurance industry.
AI improves customer service
Insurance companies can utilize AI technology to improve customer service within the company.
Because of data and AI advancing so much in the industry, carriers can now do a lot more for their customers.
They can help monitor risk, they can help predict risk and they can help give advice to customers on how to reduce risk going forward. That means the frequency and severity of losses come down over time.
AI helps stop insurance fraud
AI is better equipped in detecting fraud than humans. And fraud is one of the biggest problems for insurance companies, especially with the estimated amount of around $40 billion per year lost due to insurance fraud.
AI-powered tools can help stop insurance fraud thanks to their ability to instantly detect unusual patterns and activities that the average human reviewer might miss.
We expect that insurance companies can expect AI to be able to assist with “every major decision” by the year 2030. However, this does not mean that humans will be automatically taken out of the picture. We all know that there’s still no substitute for good old-fashioned claims and underwriting experience and that will very much still be part of the organization.
AI provides better solutions
AI-powered systems can also provide better solutions to many problems encountered in companies, many of which are tedious and mundane.
For example, analyzing large amounts of data in a short period of time is something that humans often have trouble with, but that AI can accomplish within seconds.
Due to this, 87 percent of companies are now investing more than $5 million each year in AI, including AI-enabled tools and AI-based platforms, according to Genpact. The research also found out that 82 percent of companies are planning to move their current business processes to AI within the next three years.
AI-based products are extremely helpful in streamlining important operations within the insurance industry, such as analyzing simple and complex documents and extracting vital information to aid human employees.
In addition, this is also due to the AI’s ability to self-learn through transfer learning or the kind of learning that makes use of knowledge gained from solving one problem to solve another problem.
So even with documents that the system has never seen, the AI engine processes them correctly in a similar way to a human being,