Artificial intelligence in insurance sector? See how it benefits you
Artificial Intelligence is an empowerment tool in insurance sector. Here is how it benefits you, from offering personalized covers to improving claim settlement.
Artificial intelligence (AI) is leading a technology revolution across various business verticals and sectors. Insurance is one sector which is also using artificial intelligence to change the way companies carry their businesses and provide better customer services in return. From underwriting insurance policies to offering personalized covers and improving the claim settlement process duration, AI is bringing a powerful orientation to the insurance sector at large.
Here is a look at how AI can empower the insurance sector and what it may mean for you as an insurance seeker or a policyholder.
Understanding The World Of AI
Artificial intelligence (AI) makes good use of the huge volume of data and ensures autonomous control of machines or computers through its intelligence based software. Analyzing data trends and deriving useful patterns is a subset of AI known as machine learning (ML). Artificial intelligence software makes use of the machine learnings and applies it to new situations and future trends. In practical usability everything from voice and image recognition to natural language processing and virtual chatbots all make use of Artificial intelligence as the core technology.
AI Innovations In Insurance Sector
The role of AI in insurance sector is of paramount significance as the insurance sector has a huge volume of data, which means sometimes insurers are unable to offer customised solutions to each policyholder. Insurers have a host of agents, brokers, claim investigators etc. to accomplish their goals of faster customer support and easier claims. With the introduction of AI in the insurance ecosystem all such areas are likely to receive an immense boost helping both insurers and policyholders.
AI In Customer Engagement
If you have been thinking of buying insurance but are apprehensive about mis-selling or understanding of finer terms and conditions, AI can bring in a good change for you. AI offers an intelligent customer interaction platform leading to proactive customer engagement. Unlike traditional insurance agents, AI based chatbots are helping consumers pick and choose the right Insurance plan as per their need without worrying about any likely mis-selling.
Policy Price Based On AI
With AI based technology, users can reap benefits of a price based policy that would take into account the behaviour patterns of the individual, making policies more personalised and better priced. AI offers use of predictive analytics where insurers can trace behavior patterns and use them to assess the risk for each individual policyholder.
For example, you are looking for Health Insurance and have always had a healthy and active lifestyle. Compared to someone of the same age with a not so healthy lifestyle the difference in insurance premiums may be marginal,if at all. Leading a healthy lifestyle means you offer a lower chance of insurance usability compared to someone leading an unhealthy lifestyle. This reduces the risk factor of the insurer but you are still paying almost the same premium amount.
AI ensures that insurers offer dynamic underwriting leading to offering of personalized covers. The use of fitness trackers for health insurance and vehicle trackers in automobiles are allowing insurers to understand personal trends and then offer personalized covers based on their individual risks and protection parameters.
Faster Claim Settlement
The use of image recognition to access damage to an automobile in the event of a Car Insurance or the use of technology to assess first claim investigation is possible thanks to technology based on technology. Reducing the need of human workforce for claim settlementlooks viable as insurers can make better use of the workforce in other essential areas. For the policyholders, a faster claim settlement process ensures a higher insurance penetration in the long run.
As AI meets insurance, be ready for efficient personal insurance plans, faster claims, intelligent virtual chatbot insurance agents and premiums based on your behavioral needs.
By Adhil Shetty
(Author is CEO, BankBazaar)