The world itself is becoming a more technological place. When it comes to the insurance sector and insurance companies, there has been an increase in technological innovation primarily because of one development: artificial intelligence. Although the term was created in the 1950s, its advances are still prevalent and growing today. With insurance companies specifically, the team at The Zebra has given insight into using the AI tool in order to improve their risk-management industry.
What Artificial Intelligence Actually Is
While there is no concrete and agreed-upon definition of AI, the general understanding is that it is a way for computers to think rationally; similar to humans. Two of the biggest functions that artificial intelligence provides are machine learning and deep learning. Machine learning is a way for computers to see continuous trends in order for them to predict outcomes. For example, a car insurance company would utilize machine learning to help predict driving patterns for their customer base. Deep learning, on the other hand, is a way for the computer to perform a task through artificial neural networks.
How Insurance Companies Benefit from Artificial Intelligence
With various insurance companies for consumers to choose from, a way to stand out in the business is by becoming more trusted and accurate through AI. Some of the main ways AI can help an insurance company are listed below.
- Preventing Fraud and Hacking
When it comes to insurance, the FBI has reported in about $40 billion dollars each year illegally taken from the businesses. This not only impacts the companies business efficiency but can lead to an increased price in the customer’s contract. Artificial intelligence can track the irregular behaviors that a hacker would cause, and overall prevent the hacking from occurring. - Speeding up the Claims Process
Claims are a big part of the insurance process. If someone gets into an accident, having a chatbox to help answer questions speeds up the process with the instant response. This also is a way to be favorable in the eyes of the customer. - Personalizing Solutions
No one is the same, and their solutions shouldn’t be either. The personalized approach is a way that AI has improved the insurance industry by tailoring their services person-by-person. With a simple AI application on a phone, insurance companies can track the way that someone drives. The data could then allow the company to accurately adjust their rate that they charge the person by their driving habits. - Benefitting the Customer
Overall, artificial intelligence not only benefits the insurance company but the customer as well. Companies are more accessible and timely which is important with the liability aspect of insurance companies. People don’t have to wait for an employee to pick up the phone and answer the questions they have when there are chatbots to serve their needs.
Artificial intelligence is one great way businesses can maximize their efficiency. Through this machine-thinking tactic, insurance companies are becoming safer, more accurate and reliable; all things that are important when consumers evaluate their protection policies. The infographic below gives a more thorough visual explanation of how artificial intelligence is revolutionizing the insurance industry as a whole.
