Artificial intelligence (AI) possesses the ability to influence numerous areas such as the insurance industry. In fact, a recent study by Allianz revealed the many ways that this technology can impact the insurance supply chain positively. Furthermore, the study encouraged insurers to begin evaluating and considering their choices soon.
According to the study, current AI applications boost the insurance value chain through improving its effectiveness in targeting client needs correctly. It also increases its efficiency in not only delivering value on time but also at a lower cost.
Herein are some fields of insurance that benefit from the available AI applications:
- Market/Customer Management
Unlike manufacturing or retail, insurance companies rarely interact with their client, and the only time they do is when setting a claim or selling a policy. Nevertheless, the use of AI can aid in managing markets and customers as well as bringing policyholders closer to insurance companies.
Businesses can utilize AI in sorting through and analyzing customer data in a bid to create accurate customer profiles that back individualized and appropriate market campaigns. In addition, the technology can assist insurance companies in understanding the world better so they can update their models and actuarial formulae to provide customers with excellent prices that do not affect margins.
- Customer Advisory
Insurance companies have been struggling with various problems for many years. These issues include ensuring customers make the right choices, understand their products, and understand the product’s impact at different stages of their life before making the purchase. Now with AI such problems can be solved.
Insurance companies with a website could deploy an AI to interact with their customer ’s in an attempt to learn essential details through asking questions. In turn, the AI would suggest the ideal policy for customers.
- Policy Purchasing
When buying an insurance policy, it ought to be processed and scrutinized by an insurance representative before being submitted for underwriting. The manual process, commonly used by traditional insurance companies, can take several days to complete. However, the use of AI could make it more flawless and time-saving.
AI allows easy automatic processing of orders through conducting various types of fact-checking and data-checking like credit analysis and fraud detection. As such, this technology could help insurance companies in improving their customer experience.
- Policy Servicing
Chatbots can aid clients on a 24/7 basis, especially when an insurance policy is in-force. As a result, insurance companies will know more about their customers including, their challenges, expectations, and lives. With such details, insurers can get excellent ideas to improve their future products.
AI-based algorithms can perform automatic policy adjustments like risk profiling and portfolio diversification. In turn, insurance executives get more time to build relationships with clients.
- Underwriting and Claims
AI can help in underwriting policies and managing the risks of being in the insurance business. In fact, this technology can utilize piles of data on health records, the economy, spending records, earnings and other data from a national, city or even district level. This exercise can allow insurance companies to know how much each customer ought to be charged for each type of insurance.