Artificial Intelligence (AI) has unfolded its productive power for different industries. Insurance industry can gain tremendously by investing in AI-enabled technology and software. According to a survey, 74% of customers like to interact with computer-generated system of insurance advice. AI helps put massive amount of data to optimal use. Insurers use artificial intelligence for various uses. Such as crafting individualized policies, automating time-consuming back-end processes and providing estimates with greater accuracy to customers.
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Challenges faced by Insurance Industry
- Disappearance of retail customers. Due to digitization, customers select fragmented cover for the bits they are interested in.
- Customer’s expectation has changed. Nowadays customers prefer hassle-free insurance service where self-service is also available.
- Providing the right set of products to suit customer requirements
- Fastest claim support to loyal customers and rejection of spurious claims
- Competition with online aggregator sites. Companies that are unable to compete on price as online aggregator sites have made it easier for consumers to compare prices and switch from one insurance company to another.
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Benefits of AI in Insurance Industry
With Big Data Analytics, the insurance companies can get all of their policies in a single dashboard. Even if people solicit a new car insurance quote from a different company that is lower than others, they would still remain loyal to their old company. Depending on customer’s specific needs, insurance companies can provide personalized plans to them.
A big issue that the insurance industry is facing is fraud. As per findings, 1 out of 10 claims is filed fraudulently. With big data analytics, social network analysis and telemetrics can be applied. This helps in fraud identification.
In case of lawsuit settlements also, artificial intelligence plays a major role. It instantly analyzes history of customers’ claims. It also gives faster payout to customers. Claims are settled using various data-mining techniques by giving importance on scores obtained by the model. Similarly, Chatbots go an extra mile by acting as virtual assistants on customer’s mobile app.
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Some AI-based Insurance Applications
Many new apps and applications have developed recently which provide seamless experience to customers.
Insurify: This application verifies real-time customer data by comparing real-time quotes from carriers in various zip codes. It then provides coverage recommendations.
Clearcover: Clearcover uses AI to insure users by processing claims. If users are involved in an accident, then they just need to snap a few pictures and fill out a short form. Then, the company takes care of rest of the proceedings.
Lemonade: This app provides hassle-free, paperless, homeowners insurance using chatbots to create policies and handle user’s claims.
Insurmi: This application provides automated and conversational service to customers by integrating Salesforce in it’s dashboard. Thus, it helps providers keep track of customer progress.
Zestfinance: It can reach potential customers by harnessing substantial amount of data. Thus getting more accurate predictions.
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Traditional insurance industry has not yet lost their foothold in the market. Lastly, by adapting to artificial intelligence, companies are able to provide insights through algorithmic processing and prediction. It has also helped in customer retention. In addition, it has helped gain potential customers. This fourth industrial revolution has also helped fight fraud and process lawsuit settlements much faster.
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