Yes, it is obvious that the future is here – innovations are getting developed so rapidly that industries get completely transformed over just a couple of years.
The insurance industry is no exception. Blockchain, Internet of Things, artificial intelligence and other sophisticated technologies are already altering the way insurers operate and customers use their services.
Applying any of those technologies in insurance is a promising endeavor. However, in our humble opinion, AI has the biggest potential in the field. The thing is, it can automate data analysis and decision making, enhance customer experience, etc. – possibilities powered by AI are limited only by our imagination. Hence, we strongly suggest you take a look at the main AI trends and see which ones you can take advantage of.
4 AI Trends In The Insurance Industry
Artificial intelligence is a robust technology that can be used to optimize a variety of workflows. It is easy to get lost in all the possible AI use cases, so we have prepared the overview of the 4 key AI-powered insurtech trends to help you navigate the sea of possibilities.
1. Predictive Analytics
Powered by AI, predictive analytics algorithms process tons of data to provide you with insights never seen before.
If you implement AI in life insurance software solutions, it can help categorize potential customers based on their current and future health condition. Considering their future health risks, insurers can personalize premiums to manage risks.
Predictive analytics is a game changer for decision making within any company. It can present you with forecasted outcomes of choosing different options, so you can make a decision based on its predicted impact.
Furthermore, predictive analytics will make marketing campaigns much more efficient. For instance, such an insurance software solution can identify those who are more likely to become your next customers. By analyzing the user data, it can help you upsell additional services or offer insurance to those who are likely to acquire them.
2. Automating Customer Experience
Implementing AI-powered tools is beneficial for your customer experience as well. First of all, AI algorithms can personalize interaction with customers, thus enhancing customer experience. Such personalization can be applied to the time, means, and even the tone of communication.
Powered by AI, machine learning and natural language processing, chatbots are the front-runner insurance software here. They have a number of advantages: you need fewer employees to talk to your customers, thus you are cutting costs; a chatbot can serve customers 24/7; and, it can answer thousands of customers simultaneously.
Furthermore, chatbots can be designed to be full-fledged automated insurance agents that can analyze the person’s needs and suggest the most suitable insurance product. In this case, the customer is satisfied with how precisely his or her needs are understood and is more likely to make a purchase.
3. Increasing Claim Processing Efficiency
If you still process every claim manually, you are lagging behind. AI can turn these processes into automated workflows that require minimum human involvement and increase processing speed. Hence, your company can assess more claims in less time.
An AI-powered bot can fulfill every stage after filing an insurance claim. It can receive it, verify the details of the claim, run it through a fraud detection algorithm, send the response to the insured and instruct the bank to transfer the claim amount.
All of this can be done automatically, with a person required only to double-check the outcome. As the result, it can take only a couple of days to process the claim, in contrast with the usual 10-15 days.
4. Detecting Fraudulent Claims
Insurance companies suffer tremendous losses from fraudulent claims every year. AI-powered claim processing algorithms can put an end to this. We’ve mentioned briefly above claims can be automatically run through a fraud detection algorithm, and it deserves extra attention.
AI fraud detection algorithms can find and ‘learn’ patterns attributed to fraudulent claims and spot them in real-life claims. For instance, image analysis can assess user-submitted forms and photos and determine unnecessary repairs – this is what p&c insurance software vendors have been dreaming about for years.
There are three main advantages to implementing AI in fraud detection. First, this will increase the company’s efficiency at detecting fraud – algorithms can notice what a human can’t. Second, the whole process will be faster. Third, there will be no need to send your employees down the rabbit hole to investigate every suspicious claim – so, they will be more productive and you will cut labor costs.
It’s Time For A Case Study
While all the 4 trends are promising, chatbots stand out among them. So, let’s take a look at a real-life example of a chatbot and how it can transform the workflows.
It’s an AI-powered chatbot developed by Fortifier IT Company. This solution was created to increase employees’ productivity by delivering the relevant content. It analyzes the collected data to identify individual work priorities and determines the best content delivery time. It adapts to the user’s personal preferences to bring the best user experience.
Let’s take a quick look at the technical aspects in a nutshell:
- Microsoft Bot Framework;
- white label options available;
- analyzing metadata;
- assessing optimal timing for content delivery;
- adaptability to the user’s feedback;
- delivered on Microsoft Azure stack.
While this project wasn’t originally developed for an insurance company, it can be a valuable helper in automating internal workflows and taking care of your employees’ well-being and productivity for any company. Furthermore, this kind of solution can be adjusted for delivering content to your potential customers when it is suitable for them in a way they will like.
The Bottom Line
AI is a very promising technology that is already transforming the insurance industry, there can be no doubt about that. To sum up everything we have described, take a look at the table of the 4 main AI insurtech trends you should consider joining.
4 Key AI Insurance Software Trends
|AI Application||Predictive Analytics||Automating CX||Increasing Productivity||Detecting Fraud|
|Description||Processing big data sets to provide insights and predict future trends||Analyzing the user data related to customer experience to provide insights, AI-powered chatbots and digital advisors||Processing, verifying, settling claims automatically||Automated fraud detection algorithms that recognize fraudulent patterns in the claims|
|Impact on the Industry||Targeted marketing campaigns, improved risk management and decision making, personalized premiums||Personalized, faster, more convenient customer experience; reduced labor costs||Increased claim processing efficiency, reduced labor costs||Reduced losses due to fraudulent claims, improved efficiency and productivity|
Introducing innovations matters only if you are among the first ones to do so. Only then can it become a competitive advantage. So, make sure you don’t miss out on this insurance software development trend.
Ready to take advantage of the hype? Reach out to us to discuss your needs. Let us become your reliable insurance software developer.
In case you are thirsty for more articles on the future of the insurance industry, make sure to check out our blog.