Common Applications Of Artificial Intelligence In The Insurance Industry
Trying to keep up with the speed at which data is generated on a daily basis and our need to extract insight from that data requires powerful and innovative technology that can understand what is contained in information beyond keyword matching. It requires cognitive technology.
Thousands of claims, customer queries and large amounts of diverse data make the insurance industry a natural use case for artificial intelligence and cognitive technologies. A recent study from Tata Consultancy Services reported that the insurance sector has invested $124 million in AI, compared to an average of $70 million invested by other industries. From customer service to claims processing, AI is frequently cited as a disruptive force in the insurance sector.
In this Inmediate article, we will now look at some of the most common applications of AI in the insurance industry.
Artificial Intelligence in the Claims Management Process
Insurance industry processes are both data- and time-intensive. Consider the data types used across the many steps of the claims management process: Claim form input, incident documentation, medical reports, and repair estimates contain both unstructured or semi-structured, making it more difficult to process.
The evaluation and decision-making process depends on this data in order to evaluate the validity of a claim, to ensure against fraud, and to eventually route it through all of the decision making processes.
By automating claims processes, insurers can access and extract the relevant information from documents and reduce processing times at the same time. Automated claims management solutions have significant advantages:
- insurers can fast-track claims, reducing the time and costs of processing while enhancing customer experience through smart automatization or RPA (robotic process automation)
- AI can identify patterns in data and help identify fraudulent claims in the process. Using machine learning capabilities, AI systems can learn and discover new cases in new scenarios, automatically evaluating damages and predicting the costs from historical data
- Fraudulent cases can be detected more easily, sooner and more reliably, capturing patterns and traits that would be invisible to the human eye. This helps insurers with risk evaluations to support fast, informed decision making. In the insurance industry, artificial intelligence powered chatbots are replacing human assistants to deliver always available, fast and efficient customer service.
In the insurance industry, artificial intelligence powered chatbots are replacing human assistants to deliver always available, fast and efficient customer service.
To be effective, chatbots must have natural language processing and sentiment analysis capabilities to accurately understand what customers are saying in their own Language.
Chabot applications based on artificial intelligence allow users to interact directly with your business using their own words, through natural, human-like conversations. Chatbots can be used to automatically provide information, facilitate the purchase and help connect customers to the services or information they need, 24×7.
Deep comprehension of the meaning of words offers a great opportunity for extracting strategic information from conversations with customers. Detailed preferences, comments, habits, feelings, needs, etc. can be identified, tracked and transformed into actionable intelligence to identify not only trends, problems, and signals but also customized requirements.