Insuranceciooutlook

Automation of Risk Detection: AI for Smarter Insurance

By Insurance CIO Outlook | Friday, March 15, 2019

Provided a better customer experience is the most important criterion to maintain business reputation, but today, it has become tougher to improve customer experience as the expectation of the customers has been significantly changing. Especially the betterment of the insurance sector demands greater involvement of customers.

AI has made the insurance sector smarter paving the way for operational efficiency and customer involvement and has provided the insurers with a better chance to fathom the risk factors related to a deal. Besides securing the insurance sector, AI has been enabling superior customer experience.

The process of changing a plan and managing a claim often become complex and time-taking for the customer as they have to wait for a long time to get connected to the customer support executive, but AI-powered chatbots can solve these problems. The previous business models were complicated and included a lot of monotonous paper works. For example, to the human agent, it is tougher to go through all the available documents to analyze the risk factors, but digital insurance leverages cloud platform to store massive data sets, and AI-powered bots can easily analyze this data sets to produce a response quickly.  According to a Gartner report, by 2020, 85 percent of customer relationships will be automated, and this prediction clearly points toward the popularity of AI-based devices to improve communication with the customers.

To optimize a better pricing model is always important for the smooth running of an insurance company, and AI-powered tools provide predictive analysis to make the whole process more seamless. For example, Progressive leverages Snapshot and sensors to have a better idea about the driving ability of the customers and sets the insurance policy accordingly.

AI has become an essential constituent for the digital insurance market which is growing at a formidable pace, but this digital insurance sector also comes with certain hurdles related to pricing and underwriting. AI-driven tools can precisely address these problems to generate the right solution.  By automating the data analysis process, underwriting, and risk detection, AI has revolutionized the insurance sector providing companies with the chance to solve customers’ demand in an effective way.

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