Artificial Intelligence in Insurance — Front Insights:
Trends that business leaders need to be aware of. In this article we will look at three key ways to drive savings for insurance carriers, brokers and policyholders, and enter into the transformations in the insurance industry:
Behavioral Policy Pricing: Ubiquitous Internet of Things (IoT) sensors provide personalized data to pricing platforms, secure driver's auto insurance (called utility-based insurance), and allow people with healthy lifestyles to pay less for health insurance.
Customer Experience & Coverage Personalization: AI allows for seamless automated buying experience using chatbots that pull users’ geographic and social data for personalized interactions. Carriers allow customers to customize coverage for specific goods and events (called on-demand insurance)
Fast, customized claims settlement: Adjustments to online interfaces and virtual claims make it more efficient to settle and pay claims after an accident while reducing the likelihood of fraud. Customers can also choose to use their premiums to pay their claims (called peer-to-peer (P2P) insurance).
Therefore, the key to introducing new technology is to convince people that automation is not just a Trojan horse to refute their claims — 60% of consumers have expressed concern about buying coverage via chatbot, according to a recent survey by Verta for.
Three current AI application trends in insurance / Intertech:
We examine three major AI insurance trends one by one, examining current technology, ongoing changes, and changes in the industry. We begin with “Conduct Price”:
1 — Behavioral Premium Pricing: Move IoT Sensors Insurance from Proxy to Source Data
IoT Data IoT Data opens three main ways to launch personalized insurance pricing:
You Pay Risk: Telematic and wearable sensor data allows lower premiums for less risky behavior, including less driving and more exercise
Bundle Policy and Loss Prevention Hardware: Smart Home Companies Offer Policy Deductions to Customers of Censored Loss Prevention Technology, Enabling Device Cross-Selling, and Insurance
Verify and resolve claims: IoT data markets allow carriers faster access to validated risk management information, without relying on expensive estimates and audits.
2 — Customer Experience & Coverage Personalization: AI interfaces allow better customer onboarding
Here are three key ways that AI can enhance the insurance buying experience:
Chatbots Identify You: Use Advanced Image Recognition and Social Data to Personalize Sales Conversation
Platforms Confirm Your Identity: Automatic Personal Identity Verification Accelerates Authentication Required for Coding and Binding
Carriers can customize your coverage: machine learning allows for a completely online or app-based shopping experience.
3 — Faster, Customized Claims Solution: AI will sue faster when fraud is reduced
Speed and success are the key to insurance business capabilities, as well as two key ways AI can improve customer satisfaction after litigation.
Speed in resolving claims: This time-to-settlement metric is as important as what business paths consumers are willing to use.
Reduce the likelihood of fraud: This declining-fraud metric is important to the solutions that insurance companies prefer to use.
Conclusion: Benchmarking AI Solutions in Insurance
Customers evaluate the performance of insurance products when they need to pay, not when they buy. Unlike other products or services, customers are only able to judge the value the insurance carrier has to offer. Thus, as Alex Polyakov, CEO and Founder of InsertTech Company LiveGenic writes: “The most important metric in insurance is the customer satisfaction measure of a customer post claim.”
