In the age of modern technology businesses have had to adapt to keep up with the way modern society functions. The insurance industry is no different. In the past decade, the insurance industry has been embracing the use of AI technology in underwriting, claims management and customer communication. AI is automating routine tasks while augmenting decision making. The promise is that AI will enable better pricing, faster decisions, smarter risk selection, help root out fraud, and reduce claim handling time in turn transforming the customer experience.
Underwriting
In recent years, the use of AI has been implemented by a wide range of carriers to speed up the time and accuracy of pricing and binding. When using AI on customer applications, carriers can offer real-time pricing and binding on contracts.
Risk assessment, once a long arduous and expensive task, is now an essential element where AI has helped the underwriting process. AI can assist underwriters in assessing risk by analyzing copious amounts of data in a short time frame. By analyzing more data, underwriters can ensure precise premium pricing by reviewing more detailed information and ensure a more accurate prediction of overall cost and coverage needs.
Claims
Automated claims handling has become the backbone of the insurance industry. With the increased efficiency of workflows, claims can be handled in days instead of weeks. AI can assess the damage, verify claims, and approve them within hours of receiving all pertinent information. Allowing claims to be handled effectively and efficiently, especially during times of natural disasters where there is an influx of claims.
Even before a disaster happens AI can help predict future claims outcomes based on historical data. With predictive analytics, the claims and underwriting teams can prepare carriers and offer better options for these future claims before they happen. Another benefit to predictive analytics is the ability to implement preventative measures to decrease the overall cost of a claim.
Customer Satisfaction
Artificial intelligence is beneficial for data analysis and can be a great customer service tool. When going to a website, there are often chat conversations with all day responses to answer immediate questions. These are customer service chat bots. AI analyzes the wording a customer sends in and responds with helpful answers and links. Allowing a chat bot to answer frequent questions, customer service operators can keep lines open and focus on pressing issues. Cutting down customer wait times and increasing overall customer satisfaction.
The use of artificial intelligence in the insurance industry has changed the current insurance industry into a proactive model. As more carriers support artificial intelligence, they can establish themselves and thrive in an ever-changing technology-based world.