In today's world, technology is advancing every day. The rapid increase in technology impacts all the industries ranging from retail to automotive to telecom and even insurance. The introduction of technological advancements such as blockchain, artificial intelligence (AI), Augmented & Virtual Reality, 5G, and many similar powerful technologies are paving the future of any business and the way individuals work and live.
Considering the increasing popularity of artificial intelligence, many insurance technology companies such as Salty are using AI for the purpose of automating various parts of the insurance cycle like reduction of frauds, improvement or enhancement of services, management of claims, etc.
In this article, we will explore how artificial intelligence is drastically transforming the different areas of the insurance industry. Let's dive in!
Enhanced and prompt customer service
The concept of artificial intelligence has introduced chatbots. You can use chatbots and answer all the queries of your customers round the clock. AI-powered chatbots can solve all the basic policy-related queries and handle the complaints or grievances of the customers.
Some insurance companies are also integrating these bots with several channels like social media, websites, and others, thus letting themselves engage with customers using their preferred mode of communication. AI offers a highly satisfactory customer service experience to the customers and helps the insurance companies to reduce their overall costs. According to a recent study, 70 percent of customers are happier to receive computer-generated insurance advice than otherwise.
Detection of fraud and its prevention
Fraud is one of the most common events in the insurance industry. The use of artificial intelligence has cut down these events to a greater extent. With the help of machine learning, insurance companies can analyze historical data and identify a set of patterns. These patterns are then used to catch frauds early, thereby preventing them from taking place.
This technology is also helping companies to dig deeper into the sea of data and unlock all the hidden insights that can help detect patterns that hint at fraud at a very early stage.
Management of claims
With artificial intelligence, insurers can easily streamline the end-to-end process. The entire long process ranging from data capture, authorization, approval, settlement creation, payment tracking, and recovery tracking, can be managed automatically.
These bots can also review the claims, verify the details of the policy, check for fraud, and process payments, thus making the entire process of claims faster and more efficient.
Marketing and upselling
Digital customers demand good products at competitive prices. Using artificial intelligence, insurance agents can get detailed insights into demographics, interests, shopping patterns, and other customer information.
Such information is further used by the agents to involve their customers and pitch the insurance policies as per their needs and requirements. It is enabling many insurance organizations to make the most of this opportunity.
One of the best uses of artificial intelligence is understanding the optimal price points of insurance products for a certain demographic. With the use of artificial intelligence, many insurance companies can tailor their price according to particular regions.
For instance, a home insurance company can use AI to gain information about the geographical location to understand the employment rate, per capita income, average family strengths, etc., of the region. This will allow the AI to recommend the ideal pricing for the region.
The introduction of artificial intelligence in the insurance industry is helping both the industry and the customers. The customers enjoy a more flawless user experience at affordable rates, while the insurance companies are saving ample money by making their processes more hassle-free and efficient using such technology.