In a bid to provide a step forward for future generations, the development of Artificial Intelligence is being considered as the foundation for this step.
Although it may not be a perfect human form, there are still AI systems which we use in our daily routines, and a lot of people are not aware such as Cortana and Siri.
The insurance industry is one of the many sectors that is being influenced by AI systems. With a lot of data to process, there were new ideas on how to handle data such as the big data which made it easy for people to understand and make use of the data available.
When it comes to humans processing data, there are only a few experts available, and it is common for them to miss some significant patterns due to the large volume of data.
To make accurate decisions when using Analytics and Business Intelligence (BI) methods, there will be a need to observe the Key Performance Indicators (KPIs), look at the events resulting from different actions, and also understanding performance.
In contrast to these methods, the use of AI techniques focuses on the future. The questions that AI techniques try to answer when analyzing historical and current data include; what do we think will happen in the near future?
What information is within this data? Is there any way to automate a process? How do we make a method optimized?
These various applications are some of the reasons why after big data, a lot of experts are looking in favor of AI systems.
With the developments in the area of machine learning and artificial intelligence, insurance companies can gain some advantages by using them in their businesses. In the next section, we list some applications where AI systems are incorporated in solving some insurance problems.
Various applications of Artificial Intelligence in Insurance
• To improve loss prevention methods and also reduce costs through Underwriting
• Use in identifying fraudulent activities while managing the claims system
• The use of Chat Bots to interact with customers
• Using the customer details to promote targeted marketing
The insurance industry still has a few areas with issues that need to be worked on and the right tools can provide solutions.
The use of AI systems may be the key finding answers. An AI system is the best way to analyze the data that insurance companies have been collating for years and turn it into a more meaningful output.