What is AI?
AI is the broad application of machine learning models trained against historical data in which some behavior was closely measured. Those models can then extrapolate that data into predicted patterns. A specific subset, conversational AI, is a technology that combines natural language processing (NLP) and machine learning (ML) in the packaged form of software such as digital assistants and chatbots with responsive capabilities.
How Does the Insurance Industry Use AI Technology?
What are the Benefits of AI for Insurance?
For insurance professionals, there are many benefits of using AI, from risk assessment, underwriting, and real-time pricing data, to speeding up the claims process and enhancing the customer experience. There are also benefits for the company, such as greater efficiency, cost savings, and employee retention.
The top five benefits of AI for insurance companies are:
1. Better customer experience and engagement
Whether it’s to get a quote, file a claim, or submit information, communicating with an insurance company can be stressful for your customer. AI helps streamline these traditionally time-consuming processes into a fast and seamless experience.
2. More productive employees and greater job satisfaction
By intelligently routing customer service requests, insurance staff can focus on high-value interactions for enhanced customer engagement while enjoying less stress and improved morale. For example, using AI during the sales process can improve the close rate by 41%.
3. Faster claims processing
An insurance claims process, when handled manually, can take weeks. The standard way involves multiple phone calls and emails to collect essential information, creating a backlog of unsettled claims. With AI-enabled smart bots, claims management can be completed in a fraction of the time. As a result, claimants can be reached more easily with fewer attempts, and this improves efficiency while creating a more satisfying process for customers.
4. Lower operational costs
5. More time for high-value interactions
Traditional insurers spend a lot of time fielding phone calls and routing emails to the proper staff member or department. AI frees them to focus on more complex issues as well as more meaningful engagement with your customers.