Artificial intelligence (AI) has been the buzzword for quite some time now. Businesses are keen on adopting thistechnology owing to its promising benefits. According to McKinsey, the insurance industry can tap a potential annual value of up to $1.1 trillion by successfully implementing AI.
Using AI, the Insurance industry can gain a host of benefits such as better productivity, enhanced customer experience, efficient claims management, reduced frauds, and others. However, the key is to identify the right set of use cases and invest in the right platform.
A glimpse of how AI can transform below areas in the insurance industry:
Customer Service– With chatbots, you can answer your customers’ queries round-the-clock, from solving basic policy related queries, quotes to handlingcustomers’complaints and grievances. The bots can be integrated with various channels such as websites, social media, and others, allowing you to engage customers through their preferred mode of communication. Thereby, reducing costs and improving customer experience.
As per a study, “74% ofconsumers would be happy to receive computer-generated insurance advice, and 78% would like to take investment advice from a virtual assistant.”
Fraud Detection and Prevention-The insurance industry incurs over $40 billion per year as the total cost of insurance fraud. With machine learning and AI, the insurance companies 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. Further, the technology helps you deep dive intoa sea of data and unlock hidden insights.
Claims Management– With AI, the insurers can streamline the end-to-end process, from data capture, settlement creation, authorization and approval, payment tracking, salvage and recovery tracking, legal matter processing to communication management. The bots can review the claim, verify policy details, check for fraud and process payments, making the claims process faster and efficient.
Marketing and Cross/Up-Selling– Digital customers demand sophisticated products at competitive prices. Using AI, insurance agents gain detailed insights into customers’ demographics, interests, shopping patterns, and other information. This information can be used by the agent to engage customers in their context and pitch policies as per their needs, enabling the insurance organizations to tap the opportunity.
These are just a few examples. The insurance organizations can achievea lot more with artificial intelligence as part of their technology stack.
Selecting the Right Platform
One of the biggest challenges that insurers face while opting for AI is data security. AI systems are to be trained to deliver accurate results. The training requires a humongous amount of data/transactions, including all possible scenarios. This poses the risk of data leak or security breach. Thus, while implementing AI, it is important to carefully choose the platform.
Investing in low code digital automation platforms with new-age capabilities such as AI, analytics, social, robotic process automation, and cloud is a safe bet. The platform not only helps you drive AI into your processes but also allows you to leverage other technologies and remain competitive, while managing your organizations’ content, process, and communication. Thereby, breaking silos and giving better visibility and control over processes.
The adoption of AI is gaining momentum across industries. With customers embracing digital at a faster pace, insurance organizations need to step up and transform their processes with cutting edge technologies like AI.
Views expressed in this article are the personal opinion of Virender Jeet, Senior Vice President – Technology, Newgen Software.