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3 AI Trends in Insurance to Know

By Insurance CIO Outlook | Monday, September 28, 2020

The insurance industry is poised to look beyond the convention and benefit from newly emerging AI use cases.

FREMONT, CA: The technology of artificial intelligence has now become a part of the insurance landscape. Various insurance carriers are adopting AI-backed solutions and experiencing benefits in varying degrees. However, AI has been evolving throughout, and many new applications of the technology have now emerged. In the context of insurance, these new applications promise a world of opportunities that go beyond claims handling, pricing, and fraud detection. Some of the notable trends the AI and its goodness in the insurance industry are enlisted below.

Deployment of Extended Reality

In the field of insurance, AI has converted incumbent methods of appraisals and evaluation into advanced and automated ones. Along with analytics and mobile technology, there have already been many futuristic developments. Now, with evolved AI, augmented and virtual realities are finding their way into the insurance industry. Together, the technologies are expected to consolidate extended reality and empower insurance carriers to virtually inspect claims and evaluate safety aspects before producing a quote.

Evolved Customer Interactions

Websites and apps that insurance carriers are providing are already equipped with automated chatbots. The AI algorithms driving these bots are getting more and more intelligent every passing day. The incorporation of sophisticated features, including natural language processing and speech recognition, is expected to enhance the credibility and capability of the chatbots. Subsequently, insurance firms are expected to reduce manual customer services and make the capabilities AI-oriented.

Guaranteed Data Veracity

AI is expected to result in data veracity, enabling insurance carriers to access and utilize data that is highly accurate. With enhanced accuracy of data, every aspect of the insurance industry, including underwriting, policy administration, claims management, and fraud prevention is expected to attain an edge.

As insurance carriers begin to absorb these new trends and implement evolved AI applications, the impact on business will become evident, and new avenues for efficiency and optimization will emerge.

See also: Top Banking Analytics Solution Companies

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