4 Ways to Leverage AI for Insurance Sector Transformation

By Insurance CIO Outlook | Wednesday, June 10, 2020

A report by McKinsey states that the insurance industry poses to have a potential annual value of $1.1 trillion if it successfully implements AI

Fremont, CA: The most awaited technology for quite a while is Artificial Intelligence (AI). Many businesses are on their toes to adopt this technology owing to the benefits it promises to bring in. A report by McKinsey states that the insurance industry poses to have a potential annual value of $1.1 trillion if it successfully implements AI.

Using AI, the insurance industry has a lot to gain, a host of benefits such as enhanced customer experience, better productivity, efficient claims management, reduced frauds, and many more. However, the key is to recognize the appropriate set of use cases and investments in all the right platforms.

Let’s have a look at how AI can transform below areas in the insurance industry:

Customer Service– With chatbots, all the customers’ queries are answered around the clock, everything from solving basic policy-related questions to handling customer complaints and grievances. The chatbots are integrated with several channels, including websites, social media, and many others, that allow the employers to engage customers via their preferred mode of communication. This not only reduces costs and improves customer experience.

Top 10 Artificial Intelligence Solution Companies - 2019Fraud Detection and Prevention– The total cost of insurance fraud incurred by the insurance industry per year at present ranges around $40 billion per year. With ML and AI, the insurance companies can analyze the existing historical data and recognize the pattern set to avoid any leeways for insurance fraud. By detecting the frauds at an early stage, the majority of the insurance fraudsters can be captured or even prevent them from happening. Further on, the technology can be leveraged to dive deep into the sea of data and unlock data hindrances with insights.

Claims Management– With AI, the insurers can seamlessly streamline the entire end-to-end process, everything from data capture, settlement creation, authorization and approval, payment tracking, recovery, salvaged tracking, and legal cases processing and communication management. The bots also have the ability to review the claim, cross – verify policy details, check for fraud and process payments, and also make the claims process faster and efficient.

Marketing and Cross/Up-Selling– Digital customers demand competitive prices for sophisticated products. By employing AI, insurance agents can obtain detailed customer demographics, shopping patterns, interests, and other vital information. The agent can use the collected data to engage customers in their context and pitch exemplary ideas. The data can be used to empower customers and enable insurance organizations. This information will help the agent to engage customers and empower them, allowing insurance companies to utilize the opportunity.

See also: Top Chatbot Solution Companies