Top 5 Use Cases of AI in the Insurance Field
It’s obvious that the clear advantages of leveraging AI in insurance make it an attractive opportunity to harness and deploy.
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Artificial intelligence(AI) is capable of accomplishing colossal feats in the modern tech-centric world. The advent of artificial intelligence has allowed multiple new avenues to gain more traction. It’s obvious that the clear advantages of leveraging AI in insurance make it an attractive opportunity to harness and deploy. The benefits have been confirmed in practice by several successful cases like AI-based chatbots, data analytics, fraud prevention, customer service, and more. Let’s check out some of the most impactful applications of AI for insurance companies.
The insurance industry is notoriously known for slow processes and delays. However, such processes are becoming more and more digital as customers become less keen on paper-based systems and the unnecessary waiting times that accompany them. This is where AI is beginning to emerge as an essential tool that allows insurers to meet customer expectations.
Artificial intelligence (AI) in insurance comes with data processing capabilities that enable companies to build a refined environment wherein data related to business and customer interactions can efficiently and seamlessly move from one department to another on a single, centralized platform. It not only elevates efficiency in claims processing but also makes it less prone to errors.
For insurance companies, personalized experience is profitable in multiple ways. It is the key to earning loyal customers and evangelists, and each brand advocate produces at least three new customers on average. Standing at the junction of customer expectation and emerging tech capabilities, AI-powered insurance services will deliver personalized solutions, tailored advice, and round-the-clock service to customers. AI in the insurance industry makes it easier for businesses to tailor coverages and rates as per the customer’s needs and requirements.
Nowadays, it has become essential for insurance companies to accelerate fraud prevention, prediction, and detection activities. AI for insurance companies has the potential to transform the industry, especially in fraud prevention and detection. The artificial intelligence approach to fraud detection and prevention has garnered significant popularity in the past few years and shifted industry interest from rule-based fraud detection methods to Machine Learning-powered systems.
AI-based deep anomaly detection (DAD) is a popular form of technology applied to the insurance industry. AI-powered solutions can analyze heavy volumes of legitimate insurance claims to create models of typical claims. Any deviation from standard claims gets flagged as potential fraud and enables insurers to reduce the related risks and costs.
If there is one technology that is paying dividends, it is AI in insurance. Artificial intelligence has paved the way for insurers to meet the demands of customers who want smarter, personalized, hassle-free, and faster services. AI-based chatbots are redefining how businesses are conducted on a daily basis. They bring conversational capabilities, instant value, and automate customer interactions from quotations, onboarding, customer support, and policy renewals.
Even today, several insurance companies rely on manual procedures to generate documents. It is time-consuming, inconsistent, and expensive. An essential use case of AI for insurance companies is document creation and generation. Artificial intelligence combined with RPA can generate and process a variety of documents more efficiently and accurately.
The role of AI in the insurance industry encompasses everything from chatbot assistants to fraud prevention and process automation. In the coming years, owing to technological advancements and the emergence of new business models, AI will gain more popularity.
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