The Insurance Industry is Rapidly Embracing AI & Machine Learning

Insurance

Gee, a while back (6 months?) if you said the insurance industry was very progressive, cutting edge and tech savvy you would probably have bet bitcoin peaked at $1,000, too. WRONG on both. The stodgy insurance industry is transforming (quietly) into fintech with blockchain applications, P2P insurance, etc. and now artificial intelligence (AI) and machine learning. Not surprising since insurance is a massive pile of data and what better way to use that data then with AI and machine learning. So, don’t bet against the insurance ‘smarties’ anymore. They are really into the cutting edge cool stuff.
(Bill Taylor/CEO)


Artificial Intelligence and Machine Learning Transforming the Insurance Industry

Although the concept and definition of artificial intelligence is still morphing as the technology matures, generally it is the idea of building machines that can think like humans. The term machine learning is used to describe the idea of teaching computers to learn in the same way humans do. It represents the leading edge of AI. Since insurance has always been data heavy, it is perfectly poised to be significantly impacted by AI. Here are just a few ways the insurance industry is being transformed.

Insurance advice and customer service

From the first interaction when determining what coverage is best to ongoing customer service, machines will continue to play an increasing role in customer service in the insurance industry. According to one survey, most customers don’t have an issue with interacting with a bot; 74% of consumers would be happy to get computer-generated insurance advice.

Consumers have come to expect personalized solutions, and AI makes that possible by reviewing a customer profile and providing recommendations for only insurance products that are relevant for that customer and that would be the best for them based on set criteria. Chatbots that work with messaging apps are started to be used in the industry to resolve claims and answer simple questions.

Transaction and claims processing

As a highly regulated industry, the insurance industry processes thousands of claims and responds to thousands of customer queries. AI is being used to improve this process and move claims through the system from initial report to communicating with the customer. In some cases, these claims do not require any human interaction at all. Those companies that have already begun to automate portions of their claims process are realizing the time savings and increased quality of service…”

Full Story at Forbes.com