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3 Ways AI Contributes to Improve Customer Experience

By Insurance CIO Outlook | Wednesday, October 30, 2019

Insurers are constantly aiming at transforming customer experience with the AI's surge.

FERMONT, CA: The progress in Artificial Intelligence makes the insurers rethink their organizations in every facet, from the front office to the back office. Many of the operational activities performed in an insurance company on a daily basis are repetitive, and manual processes using structured data that are resistant to automation, thus cutting costs. In addition to cost reduction, AI systems can improve customer experience by delivering personalized product recommendations, timely underwriting and claims resolution. AI can create unique experiences in the insurance industry for customers looking to purchase or renew property and casualty insurance. Subscription claims and data analysis can be optimized to enhance customer experience and internal operations. See how AI influences the insurance industry.AI

Chatbots for Personalized Product Recommendations

Most of the insurers are focusing on customer service and are channelizing their AI projects such that the right and much-needed customer information is captured and utilized. AI tools enable customers to provide information to a chatbot and quickly receive personalized product recommendations and quotes. Consumers and small to medium-sized enterprises will be able to purchase most insurance products online in minutes, supported by AI tools that provide instant underwriting and pricing based on automated analysis of a customer's profile. Insurers are using ML and NLP-driven digital agents to make real-time conversation-based decisions. Human agents will be available for further advice, supported by AI tools that analyze the financial profile of the customer throughout the process. Representatives in call centers can even receive coaching tips from AI tools that evaluate a caller's feelings and mood while a call is being made.

Faster, more Accurate Underwriting

The underwriting process relies on the management and analysis of data. This enables accurate results in pricing and risk assessments as well. To improve the accuracy of risk assessments and quotations, AI techniques can now be applied to a wider variety of data sources. For example, when underwriting homeowner insurance applications, these tools may automatically analyze real-time data from security systems or flyovers using drones. Telematic data analysis can provide insight into driving behavior such as how fast the customers drive, and how quickly they accelerate. Many insurers use ML applied to third-party data such as prescription and driving records to offer real-time underwriting, enabling customers to purchase life insurance online in minutes without a medical examination. 

Customer-Friendly Claims Processing  

Claims have always been a process dragged out. It is difficult for a customer to negotiate with multiple contact points when they are forced to file a complaint due to injury or damage to property. AI can enable insurers in their times of need to serve their customers best. It can process claims and other requests, assess the level of coverage, assign an agent to create follow-up tasks, and remain in contact with the client throughout the claims process.

When correctly designed, the insurance industry can be enhanced by AI, and it can boost customer experience. The primary value-added offering of AI to insurance is customer satisfaction. Continuous improvement of the workforce's skill level will not only create more committed employees but also enable better service. This, in turn, will lead to automated processing, resulting in a smart operational ecosystem and seamless customer experience.

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