July 30 2021
The insurance sector changes somewhat more slowly than others over time; Many insurance providers are still stuck with paperwork at a time when a lot of red tape can be simplified and money saved.
Not only does this mean employee spend more time on low-value tasks, but it can also put off customers who often have to spend hours on administration when filing claims. However, the industry is starting to see the value of AI, and there are several ways this technology is already being used in the insurance industry. In 2019, the global insurance valuation software market forecast is $444 million and is projected to reach $831.4 million by the end of 2026, at a CAGR of 9.3% for the next five years (2021-2026).
The Association of British Insurers (ABI) claims fraud insurance claims that £1.2 billion of fraud insurance claims were made in the UK in 2018 - as far as we know. The insurance industry is highly vulnerable to fraud, and AI has proven to be very useful in finding fraud patterns quickly and accurately.
As more and more insurance policies are issued and managed online in the coming years, AI will surely identify these models more effectively and flag them in the claims process.
Chatbots can often be used to provide online customer service by answering the most common customer questions while also directing more complex questions to a customer service representative.
AI can also be incorporated into marketing and customer research to create more accurate customer profiles and provide a more specific and targeted user experience.
For example, natural language processing tools can scan social media platforms and forums and help develop new insurance products that better meet the needs of modern consumers.
When filing a claim, most insurance providers require human staff to process and investigate claims to properly assess their eligibility. Labor costs in this move, in turn, increase insurance premiums.
Insurance software can do a lot of this with the right systems: some AI systems can now even assess damage based on photos, so it's not always necessary to send inspectors to generate reports and record damage.
By using insurance software for artificial intelligence for the initial recording, inspection and evaluation of crash events, the process can be simplified and these savings can be transferred to the customer.
Insurance Risk Factor
AI can now help insurers create personalized and accurate policy quotes based on lifestyle realities and customer preferences. For example, a life insurance policy can use data from a fitness tracker to offer rates tailored based on a customer's activity level, resting heart rate, and other key lifestyle factors.
Artificial intelligence software can also quickly assess risk factors from millions of perspectives, as many factors are likely to be overlooked by human insurance companies.
For example, a fire may be more likely if a house is next to a restaurant, but having a fire station right on the street also reduces the average impact a fire can have. In this way, artificial intelligence software is better able to design honest, personalized, and accurate insurance policies that are tailored to each situation.
The future of the insurance industry depends not so much on advances in artificial intelligence technology, but on the development of systems that integrate existing artificial intelligence technologies more seamlessly into modern life.
For example, the gradual proliferation of artificial intelligence sensors in cars, which is likely to become more common as we move from general auto insurance offers to personalized offers based on customers' driving habits.
We also hope that one day, insurance policies will become more comprehensive, again based on accurate data provided by built-in AI systems, including car sensors and fitness trackers.
The days of universal insurance are almost behind us; It can also have a positive impact on the world around us as customers can put more effort into avoiding “risky” behavior to keep their insurance costs down.
One of the easiest ways for insurance brokers to take advantage of AI technology is to purchase insurance software that uses AI.
we have developed unique insurance software that can be used to digitize the bidding, engagement and issuance process for commercial insurance companies. Our insurance software and loan origination software help you collect and analyze data, to optimize pricing and policies according to individual customer needs and to sell your products digitally in a customer-friendly way - and at the same time optimize workflow for your employees.