Among insurers who have already invested in AI, many are reaping big benefits: Almost two-thirds report success in using AI to create a better customer experience. Nearly half say AI is helping improve decision-making.
The ability to quickly and accurately process, analyze, and derive insight from vast amounts of data is critical for insurance companies looking to succeed in today’s digital market. With the help of AI technology, insurers can automate manual processes, detect fraud, better understand their customer needs and customers, and act quickly to gain competitive advantage. Accelerated claims processing and underwriting, fraud detection and prevention, regulatory compliance, improved risk assessments and forecasts, offer appropriate products and services to customers are some of the key benefits of the effective data management incorporating intelligence.
Predictive Underwriting & Pricing
With ML-enabled predictive analytics, automated systems can generate instant and accurate insights for data-driven decision making, allowing insurers to streamline underwriting processes, predict future risks, and improve pricing accuracy.
Claims Processing & Management
The digital insurance customer wants immediate claims updates at their fingertips. AI enables speedy, zero-touch claims processing and data extraction, helping insurers augment claims workflows and reach customers faster. Empower claims teams to identify and predict outcomes with structured, predictive insights.
As fraud attacks become more nuanced, fraud schemes are increasingly difficult to detect. AI models recognize anomalies and suspicious patterns in claims, enabling insurers to identify fraud attempts and emerging fraudulent behavior before it’s too late.
Customer Risk, Experience & Personalization
Gain more insight into at-risk customers, provide personalized customer responses, and learn more about your insureds with predictive models and AI assistance. With AI-driven chatbots, insurers can receive valuable customer information to inform automated responses and predict potential risks.
As per a survey done by PwC, Insurers are concerned about some of the risks that AI solutions, if not carefully governed, could create: Potential new cybersecurity and privacy threats top the list of AI worries. Problem is not that AI is inherently risky. Instead the challenge is the lack of specialized AI skills in an organization. Another common issue is the silos among business lines and disconnect between AI and the Analytics group.
In order to overcome the obstacles and achieve faster ROI with AI, companies should focus on collecting the right data and making it readily available, bring AI and analytics together, think long term and put together the right governance in place.