4 Reasons Insurers Should Adopt Artificial Intelligence in 2020
According to Price Waterhouse and Coopers & Lybrand (PwC), Artificial Intelligence has the potential to contribute $15.7 trillion to the global economy by 2030. While AI impacts nearly every industry, the insurance market is rife with the opportunity to leverage AI in business operations.
Advanced technology such as this not only grants insurers a competitive advantage but also positions them as an industry leader embracing digital transformation. Additionally, to keep up with customer needs and demands, insurers must develop a strategy for integrating AI into their day-to-day operations. When done correctly, using AI in insurance can lead to success in four critical business areas.
Customize products based on historical needs
With AI, insurers can view customers’ historical data to create personalized products. For example, insurers can leverage AI to better understand past behaviors of customers in order to more accurately predict future incidents and develop a product accordingly.
This benefits not only customers but also sales teams. Understanding customer patterns ahead of time can give sales teams an idea of what the customer could potentially pay and adjust their pricing. AI also allows teams to alter product offerings in real-time to provide the customer with different scenarios and options, ensuring both parties get the most value.
Improve the customer experience
A report from Accenture shows that 52% of customers believe technology plays a prominent role in their day-to-day lives and 19% view technology as an extension of themselves. Insurers must integrate technology like AI into their process to keep pace with customer’s needs and to improve the overall customer experience.
For example, insurance companies using chatbots can develop automated answers based on customers’ most commonly asked questions and allow AI to answer quickly and efficiently. Additionally, if a customer asks a complicated question requiring human attention, the chatbot flags the team about the more significant issue at hand. Insurance companies with a global presence can use advanced chatbots to translate questions quickly and tend to customer needs anywhere in the world and at all hours of the day.
Streamline claims processing and underwriting services
AI can also speed up the claims process and underwriting services and simplify it for customers. For example, if a driver gets into a car accident, they can photograph the accident with their phone to include in their claim, expediting the claims process. Insurers using AI can quickly determine possible scenarios and solutions. Because AI works faster than humans, it’s also able to spot inconsistencies throughout the process — adding an extra level of trust and peace of mind to claims teams and customers.
Enhance the hiring and recruiting process
Last but not least, insurers can leverage AI to speed up the hiring and recruiting process. On average, recruiters spend 13 hours each week sifting through applications for just one job role. Using AI, hiring teams at insurance companies can use data to match job descriptions with applicants quickly to find the most qualified candidates. In addition, companies can use AI to reach even more candidates through other hiring platforms, like social media and career boards.
AI and machine learning are a process where data is captured in minute detail and aggregated to generate learned patterns. This learning process which in the past, was called experience and was left to individuals at various levels to educate others within the organization. Today we have the ability to use collected data to help us see the future. Those not embracing the technology will continue to use a manual process, just like many of the companies that have lost market share, minimized automation, not engaged on social media, or lost money due to higher industry expenses.
Cooper Wallach joined Fortegra in April 2019 after spending ten years at Houston International Insurance Group (HIIG). During his time at HIIG, Cooper lead all underwriting efforts for their monoline Workers Compensation, All Secure, Supermarket, Allied Health and Marina products. He was promoted to National Marketing Director during his last two years, in which he oversaw all HIIG admitted and surplus lines products. He was also responsible for HIIG’s website, web-based marketing campaigns, and agency management. Before his tenure at HIIG, Cooper gained over 25 years of broad ranging, industry experience. This includes his responsibility for all workers compensation and Texas non-subscription coverage products at HCC Insurance Holdings Inc. Prior to HCC, he managed various underwriting activities and lines of business at Hartford and Kemper. This classic training included property, highly protected property, products liability, general liability, and workers compensation. His expertise and knowledge serve as an asset to Fortegra and the growth of its partners.
