Ways that AI is changing insurtech | TechBullion
Insurtech has taken significant strides in allowing for the highest level of insurance customisation possible, but there is still a way to go in reducing the human dependency aspect, placing more emphasis on streamlining processes with the help of automation and ultimately enhancing the customer experience through optimised technology.
Historically, insurance providers have been burdened with copious amounts of documentation and a battle with outdated technology. In a bid to move away from archaic systems and processes, many may look to integrate programs, but shy away after considering the costs and complexities involved.
Simplified, visually-enhanced automation software that is easily customised and seamlessly integrated with existing commercial platforms is one of the most effective ways of making the leap from obsolete systems, to an adaptable and programmed process.
Additionally, human intervention is often necessary to allow older systems to function. This becomes an added cost and concern, and can often be the deciding factor between the choice to move ahead on automation or to recede from it.
Here, the experts at XpertRule explain exactly what AI is doing for the Insurtech industry.
Overcoming legacy blockers
Replacing old systems and streamlining large volumes of documentation is a key driving force in automation development.
Allowing information to be transferred between systems without the need for direct integration simplifies processes, enhances customer satisfaction and workflow, and redefines the roles employees play by removing traditional time-consuming practices and freeing up more time to develop relationships and ultimately, their part in the organisation.
Utilising an abundance of data
Given the volume of documentation an insurer requests, receives and processes, introducing automation through data mining and machine learning can have exceptional knock-on benefits.
By removing the dependency on people to process and analyse data, and further eradicating the risk of human error and enhancing speed of processing, these positive effects can be achieved by plugging in cognitive services, machine learning, IoT data, interactive voice and RPA.
The identification of patterns and algorithms can be used for more sophisticated processing, and the insight automation can gather from this data can help clear backlogs in hours or days, rather than months.
Enhancing the customer experience
AI and automation can allow processes to be completed instantly and without the risk of error, providing an unsurpassed customer response turnaround time. This is especially relevant with insurance policy setups; manual processing is time-consuming and tedious, where automated processing can complete tasks in minutes and allow for more time to be spent on client interactions and enhanced experiences.
A great example of this is Lemonade, who have been able to successfully implement automation and can process claims within 3 seconds.
The provision and management of insurance involves huge amounts of data. Identifying risks in underwriting and investigations, checking information sources to process applications and claims and the ability to free up valuable time and resources to focus on personal and company growth is only the beginning of the positive changes the insurtech industry is met with when the real-world capabilities of AI are realised.
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