How Insurance Industry Will Transform With The Help of AI?
In the insurance industry, everything thrives on outcomes that are predictable and can generate value for customers. As AI, has started to penetrate in every aspect of our lives it has become very crucial for industries such as insurance to adopt new trends. Many people believe that AI has both potential and tools to transform the industry and simultaneously enhance the customer experience. In the coming years, the industry will be equipped with automated personalized services for faster claims handling and underwriting processes.
The industry is expected to report exponential transformation due to AI for enhancing customer experience and decreasing time for insurance claims. So here are some of the trends which are reshaping the insurance companies and will transform the sector over the next decade:
Big Data and IoT
Accelerated development in cloud technology and IoT has opened up a world of information. Data can be sourced from new gadgets such as wearable, telematics, and smart home sensors. Such gadgets can help insurers collect detailed information in real-time data which can be utilized to monitor and understand the behavior of the customer. This information has the potential to make a huge difference for the insurance industry as they can leverage this data to understand customers more deeply. This will result in more personalized pricing, personalized products, and real-time service delivery.
For example, health insurance service providers can use machine learning to help patients with health coverage options from the collected data. They can also track and monitor fitness and heart rate to reward healthy habits. A large amount of data will also help companies prevent fraud as data and machine learning algorithms are trained on the customers can glean patterns.
Natural Language Processing
Natural language processing can help insurance leverage language models which can help find relevant information during claims settlement. This will enable companies to drastically reduce the time required to respond to a customer query, improving customer service. The researchers have been developing more and more complicated models for language-related tasks. It is becoming easier for companies to use AI for gathering import data and highlighting trends which makes it easier and inexpensive for insurers to address their need of their customers by piecing together that information.
The development of computer vision is helping insurance companies advance by automating tasks. These tasks are being automated with the help of image recognition algorithms that enable machines to extract meaning from visual data. This can help companies reduce the time required for damage assessment for different claims. They can also cross-check the data by tracking camera feeds to detect unsafe behavior during vehicle settlement claims. Along with the speed and efficiency, AI is paving the way for real-time visual data analysis that provides faster and more accurate solutions.
Cognitive technologies are expected to advance leaps and bound and are expected to experience the maximum demand from the industry. This can be attributed to the fact that cognitive technologies are able to learn through decomposition and inference. This will enable insurance companies to process a large number of complex data streams generating from insurance products tied to an individual.
Open Source and Data Ecosystems
AI will be creating transparency between industries and making data omnipresent will lead to the emergence of open source and data ecosystems. This will enable data sharing across different industries and public entities. The wearable data can be directly used by insurance carriers under certain regulatory and cybercrime frames to share data for multiple use cases.
These technologies are the future of the insurance industry and are continuously experience transformation. There is no certainty where the technology will take us but companies across the world are slowly adapting to the change.