Artificial Intelligence has become one of the driving factors behind the growth of various industries. It’s given a new direction to the industrial IoT, made financial services more accessible and safer, and streamlined various mechanical tasks that are otherwise too laborious and time-consuming. However lately, this versatile technology has also started making waves in the insurance sector.
The following are some of the ways AI is changing the insurance industry for the better:
Facial recognition is one of the most touted applications of AI, and it can be used in the insurance sector too. In fact, insurance company Lapetus offers the customers to buy insurance with a selfie. It’s using the technology to study the facial aspects of different customers for signs of life-threatening habits such as smoking and drinking. This allows it to calculate the right premium amount for each candidate without spending money on expensive and time-intensive medical examinations.
Traditional insurance services are expensive. Insurers spend billions of dollars every year on the claim handling processes. This has to do with the manual approach of handling various tasks which include documents verification, paperwork, communicating with the customers, etc. However, AI is able to make the entire system more cohesive and organized, and this has helped the insurance providers to provide better services to their customers.
A good example of AI’s impact on the insurance service is how deductibles are handled today. For instance, Lemonade is able to offer Zero Everything which is an interesting way of handling deductible insurance as under this, customers don’t have to pay for deductibles and can claim 100% of the amount. This is possible due to the underlying AI technology that’s able to save costs in the claim process. The insurer is thus able to pass on this benefit to the customers by offering full claims.
Chatbots are becoming increasingly popular in almost every sector, and insurance is certainly one of them. In fact, the future of chatbots in insurance is pretty bright as advanced bots are already serving as insurance agents, conversational advisories, claim advisories, etc. and helping the customers pick the right insurance products easily and quickly.
A major advantage of chatbots is that they are accessible 24/7. Since the customers may need help with the claims during odd hours (health emergency can occur at any time), these bots can often be lifesavers.
Artificial intelligence is the technology of the future. There are no two ways to it. Since the insurance industry can benefit from it in many ways, we can definitely look forward to new innovations and concepts in this sphere.