How Artificial Intelligence Is Helping Insurance Companies
Artificial Intelligence (AI) in the insurance industry is a form of technology that allows computer systems to accomplish tasks without human intervention. These task involve Gathering information; Analyzing data by running models for example of projected sales. Finally, Automatically making decisions, which is essentially automating a task.
AI is turning the insurance industry around. The uses of AI in the insurance industry range from underwriting, customer service, claims, marketing, and most importantly fraud detection.
The advance of Artificial intelligence is due in big part to the rise of big data, which is the main ingredient AI requires to be successful.
Digitalization has provided an abundance of data that can be leveraged through AI to create tailored policies to each individual need.
A universe of possibilities
The implementation of Artificial intelligence by Insuretech’s is creating solutions to streamline operations, create better underwriting models and enhance customer service.
Moreover, claims management can be augmented using machine learning techniques in different stages of the claim handling process. Machine learning models for example can help quickly assess the severity of damages and predict the repair costs, using historical data, trends and images.
From a business perspective, AI can be used to conduct operations in a faster, cheaper and more accurate way. AI can also be used to understand customers better.
Synergy of Artificial intelligence and data
The main takeaways that the combination of Artificial Intelligence and data can bring to your processes are:
- The identification and study of relationship between cause and effect
- Pattern recognition, optimization and prediction
- Classification and analysis of data in different formats: text, speech, image and video
- Machine learning algorithms learn by being fed large data sets of labelled data. Once they can identify the correct conclusions from a known data set, they can be applied to real-world problems.
How can Artificial Intelligence help the Insurance Industry?
The insurance industry still relies heavily on excel spreadsheets and sometimes even paper documents. As a result, this slows down processes, and they often require human intervention and involve a lot of bureaucracy.
Also, the insured are often faced with time-consuming paperwork when getting a claim reimbursed or signing up for a new insurance policy. They sometimes also end up paying more for insurance because policies are not tailored for their unique needs.
There are many examples of how insurers around the world are implementing AI to improve their handling of claims as well as the customer experience. Some of these improvements are the following:
- Transforming the insurance experience for customers from frustrating and bureaucratic to something fast, more affordable and even tailor-made products.
- Understand better what the insured need.
- Cost savings by speeding up workflows.
- Discover new revenue streams by AI analysis.
- Fraud Detection and Prevention: AI can analyze historical data and identify a set of patterns, which can be used to detect frauds at an early stage and prevent them from happening.
- Claims Management: artificial intelligence allows insurers to streamline the end-to-end process, from data capture, authorization and approval.
Selecting the Right Platform
Terraclaim is a claim management solution that incorporates Artificial intelligence and gives the insurer, TPA, PEO or risk manager the possibility to a large variety of processes. The benefits of a system with artificial intelligence capabilities are in plain sight, as they can notify your insured of updates, send notifications, run benchmarks and examine results. Schedule a free demo and see Terraclaim in action for yourself!