Insuranceciooutlook

Big data and AI: The 'Assets' for the Insurance Sector

By Insurance CIO Outlook | Friday, February 08, 2019

Insurance is an industry that is built around risks. Insurance companies work on the ability to predict the risks related to users or organizations. If they can have more information their prediction will be more accurate, the probability of the risks will be lower, and revenue will increase.

Data is an integral component of marketing, product development, claims, or distribution. It leads the insurers to manipulate data effectively in the sector. The inclusion of big data and artificial intelligence (AI) in the insurance field make it more affordable by making accessibility and underwriting better. Advanced technologies employ repetitive tasks that are based on logic and mathematics at a higher reliability rate.

Improving Productivity and Efficiency: Insurance companies deal with huge amounts of variable documents that needed to be processed with speed and accuracy every day. Big data and Artificial Intelligence aid improve workflows by facilitating fetching, reading, understanding and extracting relevant information and automating numerous tasks. 

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Decreasing fraud occurrence: AI solutions are capable of processing unlimited amounts of information that can be an indication of fraud. Also, it helps to settle claims faster with lower risks of frauds. AI can detect misinterpretation of information by carrying out tests to validate a claim. 

Offering Personalization: Today’s insurance policies run on the conception of customization. The more personalized the policies, the more consumers will be attracted to the company. Predictive analysis is able to customize the policies and rates by analyzing currents trends, consumers’ demands and behaviors.

New Plans, products, and policies: Companies are now able to develop new plans, products and policies in a short time as Al-driven algorithms can access more data points and variables whenever the insurers need them. It makes a company agile to create a large array of customized policies in real-time.

Insurance sector’s adopting the data-driven approach and moving towards digitalization deliver power to the platform to stay competitive supporting implementation and offering useful applications to its consumers.

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