Here's why AI and insurance are the perfect match

AI in insurance

With its complex rules, detailed fine print, and lengthy processes, it’s little wonder that the insurance industry has an extremely poor reputation when it comes to trust and customer service. A recent global survey ranked insurance companies lower than car manufacturers, ecommerce sites, supermarkets and even banks for trustworthiness. Perhaps it’s because the insurance industry is one of the least innovative areas for customer service that people distrust it. Let’s face it, it isn’t often that someone gets off the phone to an insurance company feeling encouraged and motivated. This is all changing though as AI and insurance become more acquainted. The proliferation of AI has the potential to disrupt the industry and greatly improve customer experience.

Streamlining the claims process

Insurance companies don’t have the greatest track records when it comes to claims. Filling out a claim often looks as it always has. Clunky, intimidating and confusing. The industry simply isn’t consistently leveraging innovations that are made available to them. A claim can go unattended to for weeks if the company is busy or the person responsible for it is on leave.

These sort of outdated processes are as frustrating for the industry as they are for the customers who suffer for it. Agents are left with massive workloads and are forced to use antiquated systems. Even if they wanted to work faster, they couldn’t.

AI-powered claims can completely revolutionize the industry. Traditionally, claims go through many hands. But a new process of “touchless” claims mean that claims might soon not need any human intervention at all. This process uses artificial intelligence (AI) to report the claim, capture the damage, audit the system, and respond to the customer. And all in a drastically reduced timeframe. With AI and insurance coming together soon, customers filing claims may not have to wade through any red tape to have their claim processed. Something that’s bound to put a smile on faces.

Companies that have already rolled out some aspects of AI-powered claims have seen significant change across two spheres: time and quality. But AI-powered claims also have one other major advantage. Fraudulent claims cost the insurance industry billions of dollars each year. Now, instead of having humans painstakingly comb through reports to catch inaccurate claims, AI algorithms can identify patterns and alert the appropriate authority when something is fraudulent or needs further investigation.

Improving customer service with chatbots

Chatbots are another innovation reinvigorating the insurance industry’s customer service. Most people already use chatbots across messenger apps on their phones, and it seems a natural progression for customer interaction. Natural language processing helps chatbots learn the way in which people interact and adapt their language accordingly. In this way, chatbots are able to become more “human” and more accurate in their approach to customers.This leads to customers not knowing whether they’re chatting to a computer or a human.

Another way AI and insurance are aligning is through the use of chatbots. Chatbots can be used in the insurance industry to answer basic questions, sell products, address leads, and lessen the workload of actual agents, streamlining the entire process from both ends.

Leveraging AI for efficient data processing

Insurance is driven by data. The speed and efficiency in the processing of said data has a significant effect on a company’s bottom line. One of the major benefits to marrying AI and insurance is data processing. Better data means improved insights for customers.

AI can also help interpret data with the view towards efficiency. Let’s take driving, for example. Integrated AI can recognize GPS patterns with the data it has, infer road and traffic conditions and even help predict and avoid accidents. This could lead to fewer claims to process and safer customers.

While the insurance industry has been frustratingly bogged down by outdated practices and technology, the combination of innovation and new ideas is changing it all. Soon AI-powered claims will be best practice and customers will look back to a more frustrating time, thankful that we’ve moved forward. Our latest must-read article on chatbots provides more insight into how this technology is disrupting the way we live.