Could AI Save The Insurance Industry?

Artificial intelligence continues to impact human life in ways most people remain unaware of. For example, AI may be the thing that saves the insurance industry.

A company making use of this intelligence will find they can increase their market share and dominate data, and investors are taking note.

Could AI Save The Insurance Industry?

Driverless technology and other advances will lead to a reduction in this industry, which is why companies must gain an edge now. AI is one way to do so. What should people know about its role in insurance today? 

Behavioral Pricing

Verikai.com has a solution for insurance companies. For example, insurers and clients can use behavioral pricing with the help of this AI program. Insurers benefit from sensor data, as it allows them to reduce premiums for those who take on less risk. For example, a person who drives very few miles can pay a lower premium than someone who commutes 100 miles every day.

Insurers can bundle loss prevention hardware with a policy to minimize their risk while providing consumers with items they want and need.

In addition, insurers may use technology to verify risk management information instead of conducting assessments and audits that come with high price tags. AI makes predictions using data from real-life events. They access this data in real-time and have a large dataset to pull from when doing so. Risk pools will become a thing of the past. 

Improved Customer Experience

AI personalizes the customer experience. The platform can verify a person’s identity using automation, which speeds up the quoting and binding process. A person can shop on the app and customize their coverage with ease. Certain apps conduct facial analysis, for example, and assign a risk score to a person without having a medical exam completed.

Machine learning means a representative of the insurance company doesn’t need to meet with a potential client in person to prevent fraud. In addition, many insurers today offer chatbots to handle claims or sell insurance. 

Claims Settlement

Insurance companies must settle claims quickly and successfully. AI can help with this. Customers don’t want to deal with a long, drawn-out insurance claim process, and AI ensures they don’t have to. In fact, one company’s AI agent settled a claim in mere seconds. JD Power & Associates reports the fastest an insurer can manually settle a claim is 11 days. This is important because customers say the time-to-settle metric is the one they care about the most. 

At the same time, AI decreases the risk of fraud. Machine learning helps in fraud detection, as a machine can process large quantities of data in little time. Fraudulent claims cost insurers billions of dollars each year, with identity theft being the biggest culprit. However, a machine can also detect fraud in data security as well as payment transactions. 

Consumers want to save money wherever possible. With the help of AI, they find they save on insurance products. They appreciate this, as most people cannot determine the value of an insurance policy until some type of disaster strikes. Therefore, customer service increases in importance, particularly when it comes to customer satisfaction following a claim. 

The insurance industry is due for an overhaul. Artificial intelligence may drive this transformation. From autonomous vehicles to customization platforms, AI is making its presence known, and customers are the ones who will benefit.