Transforming the Insurance Industry with AI

Digital transformation is no longer an added option, it is a survival program for all industries. Insurance companies are now realizing the need for digital adaptation to have a more expansive business. As the human race is affected by COVID-19 virus, insurers are facing various operational and strategic challenges.

AI stays at the core of this digital adaptation and drives businesses to achieve their goals. It strives to unravel all traditional issues and integrate them with the existing infrastructure or by renewing legacy systems.

Need for AI in the Insurance Industry

The COVID-19 pandemic has affected people globally. In this crucial time, where social distancing is the only way to fight back, small insurance companies are struggling to sustain in the market and larger firms require to downsize their operations to go through this stressful economic period.

Earlier, insurance companies had used SAP Leonardo in minimal ways. However, here are three processes that can be improved just by using artificial intelligence.

• Risk Management

AI is the best way to ensure theft-proof functioning. It is used to detect plagiarized patterns and minimize cybercrime. In 2018, 80,000 cyber attack cases were reported every day. AI protects consumers’ and stakeholders’ data and detects any security breach before time.

• Sales and Marketing

AI solutions can be used to rate insurance policies. It can help consumers by recommending policies that are beneficial to them. Insurers can personalize the cost of the policies according to clients’ requirements.

AI tracks down the consumer’s habits and lifestyle to ensure better profitability. This technology can also help the insurance industry to widen its reach and get new prospects.

• Operations

With AI technology, chatbots can be built to comprehend and answer consumer queries over email, voice calls, and chat.  This is beneficial because as of now insurers cannot meet their clients or probable prospects to gain new business.

Benefits of AI in the Insurance Industry

• Efficient Processes

The automation delivered by AI is providing insurers with reduced cost and efficient processes. Work division is the primary benefit that frees human intervention for monotonous, hazardous, time taking processes free from manual error. It gives insurers enough time to perform high-level tasks and be more productive than earlier.

• Precisely Analyzed and Priced Data

The position of the underwriter is shifting because AI is all set to re-design and magnify insurance underwriting. Fueled by an enormous amount of data, AI can help underwriters with information and statistics to make more effective decisions. Human underwriters can use AI integrated devices for precisely analyzed and priced data.

• Easy Claim Process

Claiming insurance is always a pain point for the industry, as well as for the clients. Managing claim processes requires human intervention, from document verification to fraud-detection. During this pandemic when human movements have been restricted by the government, it is difficult to process claims without AI.

With artificial intelligence, insurance companies can minimize the claim duration from weeks to a few minutes.

Top Two Use Cases for AI in the Insurance Industry

On-premise Customer Service

Insurance companies need to handle their customer support by themselves. Earlier, companies used to hire customer service agents for communication. Now, customers require their insurance providers to reach through any communication channel, be it email or voice calls.

This is where insurance companies need AI. Such integrations help insurance companies to maintain continual communication 24×7. It enables insurance companies to handle queries and service requests across all the channels.

Automate Difficult Processes

Insurance companies have a large workforce to handle manual operations. There is a wide range of products, state-precise rules, and many other factors that made automation difficult earlier. Now, with artificial intelligence and SAP Leonardo, it is easier to predict and improve the operations by leveraging machine learning.

Just by incorporating RPA devices with cognitive technology, insurance industries can automate customer service, claim to process, and endorsements.

Important AI Technologies for the Insurance Industry

IoT

The Internet of Things enables insurers to resell policies. They do cross-sell to existing customers by offering huge discounts. Various IoT-enabled gadgets can inform consumers whenever they are facing property or health-related problems. With IoT and AI, integration insurance companies can provide a better customer experience.

Machine Learning

Automated processes curtail the error-prone tasks of dealing with unstructured big data and quote information from them to make better business decisions. AI and ML can help to steer such information and then aligning it with the general terminology, making it available through search engines and virtual assistants. With the use of technology underwriting has become a task that needs a few seconds to complete.

Conclusion

Technology is the only key to success in this tech-driven era. Equipped with tech tools, the insurance industry is going through a swift and massive transformation driven by the need for improved consumer experience.

To win in AI-based technologies insurance companies need to harness the power of AI, ML, and SAP Leonardo. The companies that will undergo complete automation can thrive in these stressed economic times.