Ways that AI Can Benefit Insurers

By Insurance CIO Outlook | Monday, September 17, 2018

With the sophistication and fast-rising power of Artificial Intelligence technology, it is slowly being incorporated into many companies. One such company is the insurance companies. The data that these companies generate and its value is increasing rapidly increasing as the new products are able to properly analyze and make use of it.

The use of AI has been the talk of the town for many tech companies lately but its use in insurance companies will be beneficial as it will reduce costs and time spent while also giving better customer experience with better decisions on pricing.

Here are a few ways that AI will benefit Insurers:

1. Implementing AI in the Claims Management.

It is well known that the insurance industry is data and time intensive, the many data types used across the various steps of the claims management contain both semi-structured and unstructured which makes processes very difficult. The use of AI will allow the insurers to access relevant information whenever necessary while simultaneously reducing the processing time. The insurers can better customer experience and also reduce the time and costs usually used on processing, AI will be able to identify fraud patterns much in advance and can also discover new situations and can automatically evaluate the damages and anticipate its costs.

2. Using Artificial Intelligence to enhance the performance of employees.

Surveys have shown that insurers believe that the teamwork between humans and Artificial Intelligence will assist in achieving their strategic priorities. Equipping employees with AI will automatically increase the customer experience as their support services provided will improve for the better.

3. Saves time on training.

With AI alongside new and inexperienced workers, the time that would usually have to be spent on training will be cut down immensely. It will allow the inexperienced employees to perform like experienced adjusters by getting recommendations at their point of work. Of course, these employees will still require training but with AI they will be able to catch up much faster and will also remove the risks usually associated with inexperienced employees.

4. Allows quicker action and better decisions to be made.

Matters such as scoring claims for fraud on a weekly or nightly basis to scoring a new claim on the first notice will enable the user to ultimately take action quicker than normal. AI will also allow the organization to make better strategic data-driven decisions. In the case of fraud, AI can analyze the previous events that occurred and will be able to narrow down on those patterns much quicker than it would take for a human.

Artificial Intelligence will slowly take over more industries than just the tech organizations and when that happens with the implementation of these steps insurance companies will be able to level the playfield.

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