Artificial intelligence is transforming our world. From virtual personal assistants like Siri, to self-driving cars, we’re beginning to rely on AI without even noticing. It’s also improving business across many industries, including insurance. Let’s explore the most promising AI applications that have the greatest potential to impact the insurance industry.
Predictive recommendations
Do the advertisements targeted at you ever make you wonder how sites like Google, Facebook and Amazon seem to know your hobbies and what you like? Thanks to predictive recommendation, the internet knows you personally and suggests sales, search and product recommendations. Predictive recommendation is based on algorithms, which take the data you enter into search engines, websites etc. to form a unique data profile and then recommend targeted ads based off that data.
This same technology can be applied to insurance in the future, with AI collecting data and identifying consumer patterns to reduce risks.
AI can also build predictive models for high-value losses, settlement, reserving and fraudulent claims with more complex algorithms.
These AI systems can share information globally in seconds and are constantly learning and adapting as they collect more data.
Overall, predictive recommendations have the potential to improve total company and customer satisfaction.
Automation
Do the advertisements targeted at you ever make you wonder how sites like Google, Facebook and Amazon seem to know your hobbies and what you like? Thanks to predictive recommendation, the internet knows you personally and suggests sales, search and product recommendations. Predictive recommendation is based on algorithms, which take the data you enter into search engines, websites etc. to form a unique data profile and then recommend targeted ads based off that data.
This same technology can be applied to insurance in the future, with AI collecting data and identifying consumer patterns to reduce risks.
AI can also build predictive models for high-value losses, settlement, reserving and fraudulent claims with more complex algorithms.
These AI systems can share information globally in seconds and are constantly learning and adapting as they collect more data.
Overall, predictive recommendations have the potential to improve total company and customer satisfaction.
Advanced Applications
AI systems are constantly working better to understand human behaviour, which in turn can provide advice based on a customer’s wants and needs.
Segments of the insurance industry are currently using chatbots to offer customer service around the clock with real-time feedback and insurance consulting. A survey by Accenture PLC says that two thirds of insurers already use AI-based virtual assistance.
AI systems may soon replace the functions of a typical broker. This technology could also improve both financial and consumer outcomes, while saving time and resources on repetitive tasks.
According to research from the Tata Consulting Services, insurance companies will spend on average $90 million USD on artificial technologies by 2020. 85 per cent of executives who took part in the survey by Accenture PLC plan to invest in artificial intelligence. Artificial intelligence is rapidly changing, which is exciting and also means that it’s vital for insurers to keep up with these trends.