Impact of Artificial Intelligence on the Insurance Industry
The insurance industry has always had data as the core of its operational processes. The modern insurance industry witnessed an explosion of data collection with rapid developments during the Information Age, thus requiring more sophisticated use of technologies that could speed up activities with increased efficiency. This eventually set up the adoption of AI for the insurance industry in various domains such as customer service, risk management, claims processing, fraud detection, and so on.
This blog talks about how Artificial Intelligence (AI) has managed to significantly revolutionize the insurance industry and how it has set up the beginning of a new digital age for customer experience in insurance in the not-so-distant future.
Why is the Insurance Industry looking at AI?
Despite the digital age making a significant mark in insurance, its effects haven’t been so profound yet compared to other sectors such as banking and finance, and even in software development.
A key reason for this is the presence of a strict regulatory environment has presented significant challenges for insurers to adopt Artificial intelligence in the insurance industry. However, the industry certainly views AI as a game-changer in terms of faster data processing, smarter operations, and improved customer experiences. AI for insurance is expected to bring massive changes to this industry in the near future.
As customer data complexity continues to increase with a need to detect and analyze unstructured data or free-text, players in the insurance industry have now realized that manual processes cannot compete against AI-based process automation, thus making them embrace the AI technology in diverse areas of the industry.
AI for insurance offers a competitive edge and many benefits in communication for services in this industry
- Personalized communication and products/services
- Services delivered immediately
- Constantly open channels for customer service
- Preferred mode of communication channel
- Real-time interactions and responses with premium customer experience
Impact of Artificial Intelligence on the insurance industry with the adoption of AI solutions
As insurance companies are aware of the above-described challenges, they are often on the lookout for potential solutions that can change their course and make them provide a more streamlined customer experience. Described below are key areas where the adoption of AI is changing the face of the insurance industry in a positive direction.
Improved Customer Experience and Service
Customers these days want a highly personalized experience with on-time delivery of services. Artificial Intelligence has made it possible for companies to fast-track customer queries by accurate identification of information and its classification.
AI for insurance is helping organizations in the areas of claims reporting, claims processing, and claims settlement which has many AI implementation use cases. AI can thus help insurance companies automate replies and tasks in real-time associated with customer queries, and save time and processing costs. AI has also largely impacted insurance activities in a positive direction by opening up a variety of communication channels for customers to communicate with ease.
Extending a point mentioned in the above section, based on personalized usage AI has been responsible for creating behavioral policy pricing. Such policies enable insurers to arrive at insurance premiums that are based on analytical and statistical records borrowed from customers’ behaviors and the data generated. However, this aspect is yet to be explored more in the future as data privacy and data protection are a few concerns.
Fraud Detection and Reduction
Frauds are quite common in this industry due to many loopholes and weak points at which data can get compromised. Artificial Intelligence has the capability to identify these gaps by using certain patterns and keywords recognition abilities. In this way, certain activities that have a high probability of causing fraud to occur can be highlighted before it happens, thus sending alerts to the respective stakeholders to manage these activities.
AI holds a lot of potential benefits for the insurance industry currently and going ahead in the future, the adoption of Artificial Intelligence for insurance is bound to grow not just in the above-mentioned areas but many more.
How does Simplifai come into the picture?
Simplifai is a leader in providing AI solutions for business automation through Intelligent Process Automation (IPA) implemented in the insurance industry. IPA, in simple terms, is a smart yet sophisticated process of business automation that arises by using Natural Language Processing techniques together with other AI components. It can smoothen out front and back-office business tasks carried out every day in the insurance companies.
Simplifai Digital Employees are composed of three main modules, mainly the Emailbot, Documentbot, and Chatbot. Together with RPA and a decision engine, these can be put together and adapted to different industries and job functions. Using these technologies, Simplifai can help insurance businesses automate repetitive tasks to make the work processes more efficient and improve workflow, especially in the customer support department.
Simplifai is an AI solutions company that provides end-to-end automation for businesses with the help of Digital Employees. These AI-powered solutions can work in any third-party system, can be configured to perform specific tasks at the front- and back-end, and provide high-grade automation. Our focus lies in the BFSI sector, and many of our Digital Employees are suitable for implementation in the Insurance Industry.