Artificial intelligence has been a major topic of discussion over recent years and it will continue to do so. The history of artificial intelligence dates back even before the first computer came up. Today, artificial intelligence and machine learning rely on theories from the past. This includes the Bayesian inference used in statistics.
Artificial intelligence (AI) and machine learning (ML) are on the list of technologies today that will impact our future. The list also includes edge computing, robotic process automation, the internet of technology (IoT), genomics, augmented reality, and virtual reality.
Even as we look to the future, some of these technologies are impacting our daily lives. You have probably heard of the Metaverse from Meta, the company that owns Facebook, which is creating a new virtual world. You may also have smart devices in your home, which are a product of IoT.
Apart from those, we may interact with AI and its sub-domains such as ML, natural language processing, and expert systems, every day. Your interaction can be direct through face unlock and virtual assistants. It can also be through embedded systems such as drones or self-driving cars.
AI has many applications in our lives and more professional fields will continue to embrace it. AI is currently used in industries including health, transport, finance, and advertisement.
AI is useful in the health industry for diagnosing patients, predictive healthcare, and creating virtual nurses. When incomes to the transport industry, we get self-driving cars, AI vehicle diagnostics, and traffic control systems.
AI is providing solutions to every major field, including the insurance industry. Today, your insurance company can rely on artificial intelligence to serve people better. In this article, we will look at how insurance companies can leverage artificial intelligence for their daily operations.
- Reducing Insurance Fraud
Insurance fraud is one of the most common crimes currently. It often seems harmless, however, insurance fraud accounts for about $308.6 billion worth of damages to US citizens. This figure illustrates how desperately insurance companies need fraud detection and anti-fraud technology.
The high number of insurance fraud cases is partly due to using outdated software. Most of the old fraud detection software in use is rule-based and, with enough skill, can be bypassed. However, we can rely on artificial intelligence to identify fraud.
As complex and random as humans seem, we have patterns that we often repeat. You have your daily routine and frequent habits that can be tracked. First, data on your normal behavior is collected. This data can then be input into a machine-learning model to predict your behavior patterns.
Artificial intelligence for Insurance companies enables the use of models to watch, flag odd behavior and raise alarms. This is crucial in reducing the number of insurance fraud cases and false claims.
- Faster Insurance Underwriting
Analyzing and evaluating the risk involved when creating a policy for an asset or individual has traditionally been the role of the insurance underwriter. The underwriters then use software and actuarial data to predict the possibility of an event.
The process is not linear and insurance companies have to keep evaluating the asset. With the current steps in place, the underwriting process may take between two to eight weeks. This is quite a long period by today’s standards. However, you can use AI technology to reduce the time spent.
You can use AI to reduce the time it takes to check and calculate the risk factor of an asset. You can also add computer vision and ML ops to improve accuracy. With computer vision, you can read data from cameras and feed the data to an AI model. This can help companies make real-time property evaluations and premium predictions. Using AI will make underwriting faster and more accurate.
- Speed up Claim Settlement
Getting a reasonable amount as a settlement is one of the biggest headaches for people with insurance policies. The other concern is the time it takes to get the money. On average, it may take an insurance company about a month to accept or reject an insurance claim. This is even if it is a minor accident.
The time may also vary depending on the time of claim, the insurance company, and your state. Insurance companies also need extra time before offering their customers a payout. This is because they need to make assessments and negotiate costs.
You can use AI to speed up part of this process. Computers can establish the amount of damage to an asset using computer vision. The images can undergo further processing using AI models to give a more accurate figure for the repair costs.
You can also use data from satellites and data from IoT devices to help verify the authenticity of the claims. This will improve your accuracy and speed up the whole process. Customers will be happier and more satisfied when they do not have to wait for months to get their payout.
- Improving Customer Service
You have heard of chatbots, right? If you have not, chatbots are AI software that handles online chat conversations for you. Chatbots can mimic human interaction and create human-like texts, thanks to AI.
Insurance companies can use chatbots to help their customers navigate their processes. Some of the processes involved include submitting a claim. In other instances, it might be a general question. In case a query is beyond the scope of the chatbot, the user connects to a real agent.
Chatbots will provide 247 support to your clients thus increasing customer satisfaction. Chatbots can help streamline your operations and reduce unsatisfied customers.
Today, artificial intelligence is among the technologies in use to foster development. All the major industries are leveraging the use of AI solutions and model deployment to solve everyday problems.
The insurance industry also stands to benefit from the adoption of artificial intelligence. AI can help detect and reduce insurance fraud. AI can also speed up settlement claims and the process of underwriting. You can also use chatbots to improve customer satisfaction. With this trend, we should expect improvements in the industry in the future.