Underwriting Is The Next Big Thing To Be Transformed By AI
The insurance industry has traditionally been slow to embrace change. Embedded within the industry are processes that require manual input and lots of paperwork. However, there are benefits and efficiencies that artificial intelligence (or AI) could bring to underwriting. Customers are looking for safer and more convenient ways to deal with their insurance needs. Enter: bots, AI and machine learning.
Here are 4 ways that AI can transform the insurance world:
- Risk Assessment: At its core, AI aims to learn from past data. And while we pay close attention to patterns, AI can help to identify risks, pinpoint trends, conserve manpower and gather information for future planning. This wealth of data and efficiency boost will allow customers to feel more comfortable with their insurance choices.
- Fraud Detection: Non-health insurance fraud in the US is estimated at over $40 billion per year. Machine learning can be used to improve fraud detection models that flag suspicious behaviour and actions. Ultimately, this will save consumers (and insurance firms) money in the future.
- Disease Management: Due to various medical conditions, there is a segment of the population that is unable to qualify for insurance. AI is allowing those who were once considered uninsurable access to insurance. For example, those diagnosed with diabetes can now access technology that continually provides digital biomarkers, such as glucose levels, blood pressure, and heart rate. Committing to active monitoring of their health with AI lets the tech predict when a person’s health may be at risk. The result: a win-win for patients and insurance companies.
- Sales and Marketing: AI can be used to track policy prices and recommend useful products to customers. When data is collected by a chatbot or even a CRM system, AI can recommend products and services based on the customer’s individual needs. Customers get exactly what they require without having to spend any more money than necessary. Satisfied customers will continue to recommend the company to friends and will remain loyal, which will also help the bottom line of the insurance company.
Using machine learning, underwriting will one day be done solely by computers and it will provide faster and more efficient solutions. AI in insurance can lead customers to the policies they actually need while making the process smoother.
Curious about how chatbots are already starting to transform the insurance industry and others? Visit our new website to book a call with one of our consultants.
Originally published at https://www.linkedin.com.