How AI Offers Personalized Policy Offerings for Better CX

By Pamela Morgan, Insurance CIO Outlook | Monday, December 21, 2020

From fraud detection to improving the customer experience, AI is expected to stand as a pillar enabling every significant insurance decision within the next decade.

FREMONT, CA: Accenture studies revealed that 82 percent of insurance executives believe that innovation is a necessity for maintaining a competitive edge for a fruitful future. An article published in Emerj talks about how AI and data science will bring more innovations to the insurance industry. Artificial Intelligence (AI) has grown to be a buzzword in the insurance industry. However, the industry has made significant progress in AI deployment, even in its early stages. With AI, insurers are all set to transform manual, traditional, paper-based processes that are slow and necessitate human intervention.

The insurance industry is using AI to simplify its operations, expedite sales, and engage with the audience efficiently. AI has challenged legacy product lines and advanced insurtech organizations to accumulate venture capital. Primarily, AI has preserved a lot of money for the insurers and has made life easier for the policyholders. The high-level technology has expedited a seamless automated buying experience, with the use of chatbots that can pull on consumers’ geographic and social data for customized interactions. AI has been effective in introducing behavioral policy pricing. The conventional model of arriving at an insurance premium based on analytical records has given way for statistical, individual-based data to determine the specific premium.

Data analysis produced by AI scores over that done manually in the case of huge data volumes. With AI applications, the underwriter can concentrate on the strategy and portfolio management viewpoint rather than manually examining the data. AI's algorithms can perform daunting, underwriting tasks more effectively. Eventually, what the policyholders require is a fast claim process. Trust plays a vital role during the insurance process. AI should resonate with confidence within current and future policyholders.

See Also: Top Insurance Technology Solution Companies

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