Is AI the Next Big Thing for Insurers?

By Insurance CIO Outlook | Monday, July 27, 2020

The benefits of AI are lined up, and the insurance industry is in the process of leveraging them to uncover unmatched advancements.

FREMONT, CA: Delightful applications of AI are serving the insurance industry since the technology has been inducted into the mainstream. These applications are in the field of policy and product design, back-end processing, customer services, risk management, and claims processing. The degree to which AI has enhanced these segments of insurance businesses varies, yet the combined result has been quite positive. AI has shown more promise in transforming the insurance sector when compared to other advanced technologies that evolved simultaneously with it. Read on!


Forming the Core of Digitalization

As insurance companies make a beeline to transform their businesses into digital-first enterprises, AI aptly becomes the bridge connecting legacy and modern operations. AI entitles insurance companies to intelligent solutions that can carry out a range of tasks all by themselves, without manual interference. Be it data processing or analyzing, many back-end processes in insurance have been upgraded with AI. Going forward, AI is expected to increase cost-saving and time-saving for insurers.

Adding Value to Marketing and Customer Experience

Currently, the insurance industry has only started leveraging the benefits of AI towards enhancing customer experience management, as well as marketing. According to experts, the benefits insurance companies are getting out of AI currently only form the tip of an iceberg. As AI-backed bots become smarter and acquire better skills, customers are bound to get a great experience while interacting with insurance service providers. Similarly, marketing will get benefits from the branches of AI like ML and deep learning.

Better Data Management

The volume of operational data generated will only grow. AI will play a major role in gaining insights from this dta and offering the same to promote better decision-making in insurance. The current use of AI allows faster claims processing and customized premiums. These facilities will gain more intelligence in the near future as innovative AI applications emerge.

AI is expected to continue empowering the insurance sector, ultimately becoming one of the most impactful technologies in the near future.

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