How ai can change the insurance industry as we know it

How ai can change the insurance industry

How AI can change the Insurance industry as we know it

  • Posted by: Anand Singh Bhandari
  • 25/02/2020

The emergence of artificial intelligence is a result of availability of huge amounts of data with enterprises and development around big data & analytics. Big data led analytical models is helping organizations to predict outcomes and deploy artificial intelligence to perform cognitive tasks hitherto performed by humans with their ability to learn, decode, think and solve problem in real-world scenarios.

Today, it is possible for digital assistants will engage to identify customers using face and voice recognition. Insurance companies with AI-powered solutions are poised to increase revenue by accurate risk prediction, speedier processing, faster delivery of claims settlement and reduced premium offered to customers.

A Gartner reports predicts that 85% of customer interactions will be managed without human intervention by 2020.

Another estimate by McKinsey, the insurance industry can witness a potential growth of $1.1 trillion, if there is full deployment of Artificial Intelligence.

AI for the Insurance Industry - The Why & How

Artificial intelligence with its multi-faceted functionalities including machine learning, natural language processing, intelligent process automation, text analytics, audio, video and image analysis has huge potential to transform the way insurers deliver services and offer superior digital experiences to customers.

It is quite natural for insurance industry to use AI for better and precise risk prediction. The ability to assess risk is critical for insurers as they largely depend on it to craft their insurance solutions. Moreover, AI plays a vital role in in all areas of insurance business including product design, claims settlement, along with cross-selling opportunities.

Automated claims evaluation process both saves time and cost to the insurance companies and offers hassle free claims process to customers by simply accessing their mobile app to upload the picture and videos of accidents and damages.

Based on customer interactions and data gathered, these next-gen digital sales advisors can suggest most relevant products to the new buyers and create cross-sell opportunities for existing customers. Insurers can offer personalized offerings to customers based on their needs and lifestyles - thereby, creating new avenues for customer retention.

Kofax AI-Powered RPA - A Use Case in the Insurance Industry

An insurance company used Kofax RPA-powered solutions to revolutionize how it manages millions of contracts and thousands of claims, reducing adjudication times by more than 75%, boosting productivity by 30% and improving customer satisfaction by 15%. With Kofax RPA, the process from claim submission to payment became faster and more accurate.

Thereby, the company could leverage RPA to scrape information from multiple sites, instead of manually browsing and documenting, and move the claim through the adjudication process quite efficiently and in no time- resulting in enhanced productivity and faster delivery of service, for an impressive customer experience.

The Future of AI in Insurance

AI-powered systems offer tremendous opportunities for Insurance companies in times to come helping them create a more personalized and exclusive product designs by leveraging the abundance of data and data analytics models. Insurers can increasingly offer products which are flexible rather than fixed or one-time, on-demand solutions as well as pay-as-you-go insurance.

With automated insurance offerings insurers can offer seamless premiums to customers that can automatically adjust according to the accidents and customer health conditions. With better implementation and deployment of AI solutions insurance companies will attract higher number of customers that are more engaged and brand loyal.

Espire being a digital and CX transformation expert, is enabling Insurance companies worldwide to revamp their digital experience management and CX strategy, resulting in up to 20-30% increase in revenue with new digital channels.

About Author

Anand

Anand Singh Bhandari

Director - Business Analytics

Anand heads the Business Intelligence practice for Espire, playing the lead role in establishing best practices and our roadmap for a robust BI practice. He ensures development and implementation of frameworks for rapid project deployment and capability enhancements in the group.