Insuranceciooutlook

The Inevitable Adoption of AI for Insurance Operations

By Insurance CIO Outlook | Monday, September 17, 2018

Walk up to a Google Home pod and say, “Hey Google, play some jazz music.” And it will pick a song from some of the top jazz playlists available. The device recognizes a user’s voice, translates speech into texts, and then into commands, thereby completing the action dictated.

That is the power of Artificial Intelligence (AI); it predicts and analyses information to produce results based on numerous data sets. It is only a matter of time before various industries such as banking and insurance start adopting AI for data analysis and predictive decision making, rather being a victim of outdated practices.

The insurance industry is a diversified market that could largely benefit from such predictive analysis, specifically around customer engagement and marketing. Insurers often find it difficult to cross-sell their products and services to customers by failing to understand their preference. Through AI, customer engagement can be tracked just as customer preferences are tracked through ads and monetization. Leveraging necessary user information through online portals, search engines, and interaction oriented insights, insurers can predict the type of products that their customers would be interested in.

This allows the insurers to target appropriate customer groups rather than trying their luck with the ones that aren’t interested in such products. Similarly, AI can assist insurers in optimizing workflows by employing chatbots that learn customer queries and streamline information to the corresponding support service. Likewise, the mere feasibility of predictive analysis and machine learning can add immense credibility to various insurance related processes and operations. 

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