How does artificial intelligence (AI) impact the online insurance industry?
How does artificial intelligence (AI) impact the online insurance industry?
Online insurance platforms significantly decrease functional and administrative costs related to standard insurance systems. With more automated processes and less physical paperwork, online insurance providers can pass these savings onto customers in the form of better coverage and decreased premiums. Also, online marketplaces have made it easier for customers to choose and compare the best-priced policies, therefore boosting competition and better pricing for consumers.
The beginning of machine learning, artificial intelligence (AI), blockchain, and IoT technologies are offering exceptional opportunities for online insurance providers to enhance their services and attract more customers. These technologies have revolutionized the way insurers interact with their customers, making the process more efficient, personalized, and hassle-free. In addition to this, according to the research report of Astute Analytica, the Global Online Insurance Market is growing at a compound annual growth rate (CAGR) of 12.7% during the forecast period from 2023 to 2031.
Streamlined claim processing
Processing claims is a complex procedure. Agents must consider different policies and understand them with every detail to decide how much the customer will obtain for the claim. Artificial intelligence for insurance can take up such automated tasks to decrease errors and the time to process the claim.
Companies have been adopting appearing technologies such as RPA, artificial intelligence, and the Internet of Things (IoT) to improve operational efficiency. With the increased connectivity, insurers can now use a wide range of IoT devices like fitness trackers, telematics, smart home assistants, and healthcare wearables, to gather comprehensive data effortlessly.
Fraud prevention and detection
Artificial intelligence in insurance is a game-changer for fraud prevention and detection. Exploring massive amounts of data can pinpoint questionable patterns and alert insurers to possible fraud in real time. It allows insurers to minimize financial losses, mitigate risks, and maintain the integrity of their operations. With artificial intelligence, insurers can save policyholders from fraudulent claims.
Enhanced routine functions
The power of artificial intelligence in the insurance industry has fetched a revolutionary shift in the level of customer service.
AI-powered chatbots can upsell and cross-sell products based on the history and profile of the customer. Automating the repetitive method enables functions to be scaled up easily while using human resources in more strategic roles.
Enhanced loss estimation
With the latest advancements in artificial intelligence technology, including deep learning, machine learning, and OCR, estimating damage has never been easier. Simply uploading a picture of the damaged object makes it possible to efficiently and quickly determine the scope of the damage.
Assessing risk
The process of underwriting was mainly dependent on the data delivered by the applicant manually by filling up regular forms. There is always a chance of the applicant being dishonest or creating mistakes that may cause to inaccurate risk assessment.
The increase in connectivity and growth in the usage of IoT devices help users bring larger datasets with accurate information. Natural language processing (NLP) allows insurers to assess via the abstract resource to bring relevant information to assess the risk better.