AI in the Insurance Industry: The Top Talent of the Future?

AI handshake

Insurtech is a term that has been gaining traction in the insurance industry over the past few years. It is short for “insurance technology” and refers to the use of technology, and more specifically artificial intelligence (AI), within the insurance sector. Some experts believe that AI could eventually replace insurers. However, others believe both can work together to create a more efficient and customer-friendly industry. Regardless of beliefs, everyone can agree there are some real benefits to adopting AI in insurance. 

 

Processing 

The first benefit of AI in the insurance industry is that it can help to speed up the claims process. Insurance companies receive a large number of claims every day and it can be difficult for employees to keep up with the volume. It can get so bad that the claims management process can eat up two insurers look at screento 50%-80% of a premiums’ revenues. Add in the impact on morale and productivity from annoying, mundane tasks, and you are left with a very expensive problem. However, by using AI to automate some of the tasks involved in processing claims, insurers can greatly improve their efficiency, productivity, and more importantly maximise revenue. 

So you can improve a claims processing speed but what about its accuracy? AI can help with this as well. Not only can software reduce human error, but by using data from past claims, it can identify patterns and red flags that may indicate fraud. This can help to protect customers but more importantly your firm’s reputation from oversight and fraudulent activity. 

 

Customer Experiences 

The second benefit is that AI can help to improve the customer experience. Customers are often frustrated with the process of making a claim or even just getting a quote. By using AI to automate some of the tasks involved in these processes, insurers can make the experience much smoother and more user-friendly. This can help to increase customer satisfaction and loyalty, which is essential for any business to succeed.  

“In 2022, 62% of customers resolved their own issues, without the need for human intervention.”- InsurTech. 

In addition to this, implementing AI can also help to personalise the user experience. Insurance companies have a lot of data on their customers but they often struggle to make use of it effectively. AI can help to analyse this data and provide insurers with insights that they can use to improve their products and services. Tailoring offers to customers makes them feel valued and understood which is essential considering emotions are playing a bigger role than ever in the buying process. 

 

Replacing Insurers 

It is clear that there are many benefits to using AI in the insurance industry. However, can it replace insurers? Well no, not yet. It is important to remember that AI is still a relatively new technology and there are some risks involved. For example, if an AI system is not set up correctly, it is prone to make mistakes. These mistakes can cost the company its reputation as the user experience becomes disruptive and frustrating. Our recommendation is to follow what others in the industry have already done and use a hybrid model. Use AI to make lives for your employees easier, so they can be focused on areas that really need their attention.  

Just before you finish reading we do have a disclaimer we would like to make. This blog wasn’t actually written entirely by us…It was written with the help of AI. That’s right, you have just read a blog on AI that was written by AI. We thought what a great way to show just how valuable AI can be to any business and its processes by using it ourselves for this blog. However, please be assured this was a one-off to illustrate the lengths AI now goes to help. We promise any other written content will be from a human!

 

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