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History has observed that mankind went through innumerable revolutions.
One such revolution is the emergence of AI technologies, which has disrupted the way orthodox businesses operate and engage with their customers over the last couple of years, throughout 2020.
As we know, AI has already revolutionized many industries, and now is the time for insurers to jump on the bandwagon to harness it to revamp their workforce, foster brand recognition, and bolster the bottom line.
According to reports, the global insurance industry will rise up to $752 million by the end of 2023.
Having said that, the concept of AI is in the process of permeating a wide range of technologies and reshaping the landscape of the insurance industry as a whole. However, this will require substantial consideration of AI in the business by all business owners.
Now, if you are keen to uncover the potential of AI-driven insurance for businesses, then this article will provide you with a complete picture of all such criteria including perks of AI in insurance, use cases of this next-gen technology in insurance ventures, and how we can ensure you implement artificial intelligence into your ongoing business functionalities.
To give you a complete round-up of this trend-setting technology, how about we begin with a short overview of the role of AI in insurance?
Role of AI in the Insurance Sector
AI is not just making waves in the insurance industry, but also implicating several external factors that can impact how insurance companies used to operate a few years ago. The concept of AI revolves around noticing human behavior and tendencies, which is why companies today are leveraging it to take advantage of that data.
AI is poised to disrupt the insurance industry like never before, both for businesses and customers.
Added to this, with AI-integrated insurance, customers can enjoy a more seamless user experience and considerably low-cost insurance premiums. And most importantly, insurance companies can also save money by making their processes more effective and proffering AI-included insurance policies.
With Artificial Intelligence, the possibilities are immense, and it is only a matter of time to start seeing these amendments. Most insurance-based businesses would probably agree that the industry will get a boost, which is exactly what insurance enterprises will get by incorporating AI.
In the not-so-distant future, AI technology can significantly impact insurance companies. Below are some of the trends you can likely anticipate as AI already makes its impact on the insurance industry.
How Can AI Redefine the Insurance Industry?
With the dire need of the hour and to stay ahead of the marketing curve, it has become critical for insurance enterprises to adopt the latest technologies like Artificial Intelligence, automation, machine learning, and more. Let us apprehend how the adoption of the latest technologies adds more value to the current tedious and exhaustive insurance business processes.
Faster Claims Turnaround
Manual billing has always been cumbersome and extremely frustrating for customers.
As we know, it is often the reason for losing a customer.
Keeping the above considerations in mind, using AI to evaluate claims can recede the processing time from a wide number of days to a few hours or even a few minutes.
Added to this, claim management considerably eats into revenue and time. Being a part of manual claim processing is prone to a significant number of issues, which can lead to an unwanted increase in operating costs.
So, Using AI-driven insurance tools can reduce errors and the underwriting process as well.
Enabling chatbots can settle claims instantly in lieu of humans from start to finish.
Chatbots Powered by AI algorithms can address standard inquiries and transactions.
Along with this, it can understand the nature of claims, detect signs of fraud, and even encourage people to be more honest. This is viable because AI comprises years of behavioral economics in chatbots.
Integrating Wellness and Insurance
The insurance company's profit depends on the capping payout. This allows companies to make huge profits.
With the help of AI integration, insurers are shifting their focus to enterprise care in many ways including- IoT-powered health apps, medical sensors, etc.
Insurers can also improve their bottom line by using AI to make premiums more competitive and personalized to user needs.
AI for insurance fraud-detection
Finding insurance fraud can be arduous, as it happens at various points of the insurance lifecycle, including application fraud, death fraud, and inflation fraud.
And now, with cybercrime on the surge, things can become worse day by day. As thousands of claims are filed daily, insurers can't investigate every case using obsolete systems..
However, AI can help insurance companies spot when things go astray, identify frauds that the human eye can't find, and even determine probable threats before they cause impact.
Perks of AI in Insurance Domains
By leveraging Artificial Intelligence in insurance, enterprises can gain a myriad of advantages such as fraud prevention, improved loss estimations, effective claims management process, improved daily operations, and more.
Incorporating AI value into the existing process makes sense and brings a sigh of relief by revolutionizing it in many ways:
According to a federal agency report, the total cost of insurance fraud exceeds $40 billion annually.
That means insurance fraud adds $400 to $700 costs each year to every U.S. citizen.
These frightening numbers reflect the dire need for highly accurate theft detection tools to curb unnecessary increases in insurance premiums and enable businesses to change their due diligence processes.
The AI-powered fraud detection system also eradicates the manually-filled applications and proffers valuable data on pointers for finer human judgments.
AI and ML algorithms are thoroughly equipped to address the repeated patterns that are no more worthwhile or fishy in obtaining desired business outcomes.
Insurers presently need to ensure that the claims meet the requisite standards throughout the process cycle. Understandably, it is an arduous task to deal with thousands of claims and customer queries at the same time.
AI in insurance claims can efficiently facilitate the claim reporting process as the customers can report their incidents from any device, any place, and at any time. AI-enabled chatbots theatrically advances the claims processes chain from the initial report, and analysis, ultimately establishing contact with the customers.
All in all, the process saves time and allows employees to focus on more complex claims.
Improved Loss Estimation Proceedings
Most businesses are moving to digital platforms to reap a multitude of benefits, and the insurance industry is not running behind in this race of disruption.
The rise of disruptive technologies such as AI, Machine learning, and Deep learning has constantly contributed to transforming business scenarios.
In the current scenario, insurers can harness the most-potent technology (Machine-Learning in insurance) to assess the damages of the object based on the photos.
Thus, AI for claims management has proven to be a game-changer technology. It's an ideal solution in the assessment of potential loss and recommends the things that might need to be fixed or repaired.
This, in turn, makes the process of loss estimation instantaneous and effective.
Bettered Daily Operations
AI has already brought big profits in the insurance industry in the sphere of customer service. It's mentioned above that chatbots in insurance take the load off human sources to initiate the process and ensure it sails smoothly.
With this being said, AI-enabled chatbots can recommend and sell products based on the customer's preference and search history.
All in all, AI can significantly increase sales and operations.
Insurance Investigation and Claim Management
Leveraging AI tools in insurance can streamline the claim assessment and settlement process. In addition to this, it can modulate all the processes including- claims creation, data capturing, payment approval and tracking, etc.
Not merely this, according to reports, AI-powered insurance companies can reduce claim regulation costs by 20-30%, processing time by 50-90%, and processing cost by 50-65% to improve customer services so far.
What are the Prospective use cases of AI in Insurance Businesses?
From the above-mentioned facts about how artificial Intelligence has remodelled the insurance industry and perks of AI in insurance, we've now mentioned three key areas in insurance where AI technology has already brought revolution – claims process, risk assessment, and forecasting. It now becomes easier to understand it with these below-mentioned use cases.
Lemonade- using AI Chatbots for Insurance Claims
Lemonade, an InsureTech startup, is a strong example that depicts the usage of AI in insurance. It depends on machine learning and data analytics models to perform a range of insurance tasks.
Doing so has helped them undercut the operational costs and compete with bigger players in terms of customer acquisition speed, price, overall client experience, and engagement.
A fully digital and AI-integrated insurance purchase has made Lemonade a game-changer and a top insurer in the industry.
ZestFinance- Use of AI for risk valuation
An AI-driven firm allows lenders to evaluate data to harness it to prevent risk. It's an automated underwriting system that helps the company to enhance profitability while predicting the possibilities of risk.
Nauto – Use of AI for forecasting
Nauto is a California-based driverless car company making driving safe and fleets smarter than ever. It has an integrated AI-driven driver safety system featured with a dual-facing camera, CV, and other algorithms to avert risky behaviors in real time.
The company is also pursuing strategic relationships with automotive industries and insurance to grow the adoption of data platforms in autonomous vehicle search. It currently works with giant automotive brands such as BMW, Toyota, and insurance company Allianz Group.
How Debut Infotech Can Leverage the Power of AI to help your Business Thrive
Being one of the preeminent AI-enabled services providers, Debut Infotech can be your partner in success by delivering you innovative solutions from beginning to completion.
Our assorted clientele base and years of experience have given us plentiful opportunities to come up with righteous solutions that will be bound to show positive results in your business.
Debut Infotech is all set to re-establish the chronicles of the insurance industry. Also, with the help of our AI experts, we can help a wide pool of clients to meet their expectations.
However, if you still have something to ask, keep our seasoned team in the loop to dive into the future of AI-driven insurance.